How Accounting Technology made Outsourced Accounting Services Safer

As current market trends reshape how our economy is today, outsourcing as a business strategy has been adopted by more and more companies with companies trusting their chosen partners enough to let them handle basic routine tasks up to handling their core competencies. As the need for outsourced services increases, one specific service is in high demand – accounting support. 

 
Since all companies need accounting functions for effective financial management, the cost-effectiveness along with the specialty brought by outsourced accounting support has proven to be vital. Until recently however, a valid concern on the security of sharing sensitive financial data to a third-party partner has been the reason why companies have reservations on accounting outsourcing. Thanks to accounting technology, these concerns can now be put to rest. 

Read: Accounting Technology: The Future of Finance and Accounting  

With the development of different technologies, we use in the accounting industry today, the safety and reliability of outsourced accounting services have increased. 

How has Accounting Technology made Outsourcing Safe? 

Data Security

The main concern when it comes to outsourcing your accounting needs is the security of the financial data that you share with your partner. As you send your data over, store it in a shared space and/or give them access to your own internal system, you are effectively opening your company to risk.  

However, accounting technology has now evolved to ensure that data shared between different entities is secure. With state-of-the-art encryption, secure servers, and even cloud accounting – clients’ financial information is now well-protected and risk-free.  

One specific example is the widespread use of cloud accounting in today’s accounting landscape. Cloud-based accounting software, such as QuickBooks Online and Xero, come with advanced security features, including two-factor authentication, data encryption, and regular security updates. These features make it harder for data to be compromised, ensuring a safe outsourcing experience.  

Fraud Detection 

Modern accounting technologies now have the ability to detect financial fraud and irregularities, detecting any risks your data may have even before it is compromised. Technology such as AI-powered algorithms, robotic process automation, and machine learning systems are able to analyze company data for discrepancies, unusual patterns, or anything that may pertain to suspicious activities.  

By outsourcing your needs to partners that are proficient in the latest accounting technologies, you can leverage their expertise and the added protection that these technologies bring.  

Real-time Monitoring 

In the past, finance and accounting professionals were tasked with constantly monitoring a company’s finances, transactions, and internal processes to be able to identify problems and gear towards optimizing and streamlining everything. With the development of accounting technology, the same technology that is able to detect fraud can now monitor your company’s data in real time, making it easy for you to stay on top of your business. 

Real-time monitoring allows your company to see how each decision is affecting your company immediately and tailoring your strategy accordingly.  

Streamlined Compliance 

Everyone in the accounting industry can agree that the rules and regulations that companies have to adhere to are always changing – this is because regulatory bodies adapt to the current economic, social, and political landscape in which they operate in now. Because of this, one of the most taxxing tasks of finance and accounting professionals is ensuring that they are constantly updated with regulatory changes and that their outputs remain compliant. 

By outsourcing your accounting needs to a partner who is well-versed in regulatory changes, you minimize the risk of fines and legal consequences, further enhancing the safety of your financial operations. 

Business Continuity 

Outsourcing accounting support often has comprehensive disaster recovery plans in place. In the event of unforeseen circumstances, such as natural disasters or technical failures, they can quickly recover and restore financial data and operations. This level of preparedness and redundancy greatly reduces the risk of data loss and financial disruption, making outsourced accounting a safer option for businesses. 

Advancements in accounting technology have transformed outsourced accounting from a source of uncertainty into a secure and reliable option for your company. By leveraging the expertise and technology offered by trusted accounting outsourcing providers, companies can enjoy the benefits of cost-efficiency and improved financial management without compromising their data.  

As companies continue to adapt to continuous technological innovation, accounting technology will become more and more secure – increasing the safety it presents for companies who need to outsource their accounting functions.   

Read Next: 5 Widely Used Accounting Software in the Industry Today  

Need Secured Outsourcing Support?  

We have a wide expertise in handling the numbers of companies across various industries and make it our mandate to stay up to date on the latest trends in accounting technology to make sure our clients’ data are safe with us. Contact us today and we’ll help you find the right solution for your needs. 

Download our Outsourcing: How to Make it Work guide today and know how we are to help when it comes to your company’s assets.