How secure are your outsourced accounting operations?
Every business in today’s marketplace relies heavily on its information technology systems to meet its operational, financial, and reporting obligations. Therefore, a secure IT system has become the key to maintaining a secure environment for the business. But with the rise of vital business process outsourcing, which requires managing vital IP assets to outsource service providers in the process, this key security concern has moved into domains outside of company control. Security concerns are increasing when outsourcing involves a key business function such as accounting and bookkeeping.
Security breaches of the following nature concern most companies that outsource their accounting operations
> Loss of confidential data.
> Data manipulation.
> Violation of personal data.
> Email intrusion.
A closer look and it can be concluded that information security concerns in the outsourced accounting process involve three basic criteria. First, the technology. Secondly, the Management and thirdly and most importantly, the Staff. Except for the first sensitive data loss point that spans all three criteria, the rest are mostly about management policy and the personnel involved in a process.
Outsourcing a business process does not necessarily mean outsourcing the responsibility. In order for the accounting outsourcing process to be secure, it is necessary for the company that outsources your accounting to first take responsibility for its own security. It is advisable to designate internal focal points and assign responsibilities within the company to ensure the smooth and proper functioning of the entire outsourcing process.
Companies that outsource accounting must engage the vendor to ensure resources and compliance with their security goals. Relying on key management, you must develop, implement, and maintain an internal security policy throughout the provider’s organization that addresses the following issues in relation to the three criteria listed above:
1) Management:
i) First, it should be assessed whether the provider has adequate security systems in place to address customer security concerns.
ii) A rigorous and regular (physical and electronic) audit and monitoring process should be implemented throughout the organization to ensure adequate security systems.
iii) Appropriate backup systems should be developed to ensure minimal data loss.
iv) Guarantee a prompt, effective and orderly response to security incidents, including, among others, failures in information systems and loss of service or breaches of confidentiality.
2) Technology:
i) Data transfer technology: The data transfer process must be secured first. It must be ensured that secure technology that is protected by the user and cannot be hacked is used for all information transfers.
ii) Workstation security technology: The workstation must be free of facilities that provide external hard drives. Similarly, restricted use of the Internet should be allowed. And the use of networks protected by firewalls must be guaranteed.
iii) Employee/Visitor Surveillance Technology: Entry/exit based on restricted access, employee login details and the use of CCTV cameras should be encouraged.
iv) Supervision of the security system in relation to the technology used: a periodic review of the entire security system in relation to the technology adopted must be carried out and the client must be aware of it.
3) Personnel:
i) A proper recruitment policy with comprehensive background checks will mitigate the risk of anyone with a questionable background working for the client.
ii) User authentication by means of a user ID and password is mandatory.
iii) Register Employees during check-in/check-out to prevent the theft or furtive entry of any external drive.
Accounting outsourcing does not relieve a company of its information security obligation, but rather creates a greater responsibility to reap the benefits of outsourced accounting, such as exponential savings and growth for the company with the organizational goal of an accounting system. adequate internal security and better decision making. process.