How Do I Safely Get My Financial Information To A Virtual Accountant?

29 Dec How Do I Safely Get My Financial Information To A Virtual Accountant?

Posted at 10:50h in

Bookkeeping & Accounting

by Becky Brown  •  0 Comments

how-do-i-safely-get-my-fi.jpgIf you’ve been reading this blog, I hope we’ve given you some idea of the value of outsourcing your bookkeeping and other financial tasks to a virtual accountant. It’s one of the most effective ways that a small or growing business can save both time and money, freeing up resources so that you can focus your energies on more crucial activities. This being said, we understand that you may still have some reservations about handing over your finances to an outside team who promises to manage it all “in the cloud”. While cloud computing has become a hugely popular trend in the past few years, we understand that it opens up some new concerns. One of these is the matter of how safe it is to transmit your financial information to a virtual accountant.

  • What is this “cloud” anyway?
Cloud computing has become one of those hot trending topics that a lot of people hear about all the time, though not everyone knows what it really means. If you guessed that we’re not talking about a meteorological phenomenon, or a looking into a cloudy hazy crystal ball to get the answers, you’re right. Cloud computing is simply a matter of keeping your data, and sometimes even the programs that process that data, on a network of servers on the internet, rather than on your local computer.
  • Why keep it in the cloud?

Technology can be funny sometimes. If you’re old enough to remember mainframe computers with “dumb terminals” you’ll remember that the computer you had on your desk didn’t do much except access the data and programs that were on your company’s server. Later, as PCs became more powerful, it was more common to move those programs to each individual desktop. In recent years however, the ubiquity of fast internet connections and inexpensive cloud storage have prompted a trend to move it all to “the cloud”. It has obvious advantages, not the least of which is that you can access your data at any time, from anywhere that you have an internet connection. That means that your financials are not just available when you’re in the office. You can access it all from home or on the road, usually from any device you’re using.

  • This all sounds great, but, is it safe?

Hopefully you’ve stayed with me so far, but this leads to an obvious question: just how safe is it to keep my sensitive financial data floating around on some kind of cloud. In fact, it’s incredibly safe, which is easier to understand, now that I’ve explained what this cloud actually is. The servers on which virtual accountants like KYB keep your files use the highest levels of security available today. We like to call it “bank-grade” security. When you think about it, it’s really more secure than paper files kept in your office, which can be read by anyone who can get their hands on them.

  • OK, but what about transmitting the data back and forth?

This is the best part. First off, we try to eliminate the need to send your paperwork to us in the mail. We prefer all data transmission to be digital, but if you strongly prefer to send us “hard copies”, we’ll shred the paperwork as soon as we’ve entered the data into our systems. We also prefer not to use email (which is, relatively speaking, insecure) for this purpose. Instead, we’ll provide you with a highly secure channel to use to transmit your data to us, using the strongest encryption available. What this means to you is that even in the unlikely event that someone did manage to intercept a transmission of data, they would not be able to access the information which is deeply encrypted, and thus of little or no use to anyone other than the virtual accountant who you intended it for.

 

Topics: Bookkeeping & Accounting