Is Trusting Your Virtual Accountant Risky?

24 Oct Is Trusting Your Virtual Accountant Risky?

is-trusting-your-virtual.jpgAs the owner of a business, you can’t help but be aware of the importance of keeping your financial data secure. As important as it is to keep accurate records, even the most meticulous of bookkeeping won’t be of any value if you can’t trust the person or people who are handling your sensitive and critical information. So, although we here at Keeping Your Balance put a lot of effort into explaining why hiring us as your virtual accountant is an ideal choice, we’re not surprised when we hear concerns about how risky that may be.

We understand your caution. The whole concept of keeping your data in the cloud is a new one, and most people aren’t really familiar with what that entails. However, we can unequivocally assure you that not only is it safe to trust your virtual accountant with your vital financials, but that it is in fact more risky to trust an in-house accountant. Here’s why:

  • Blank checks in the office = big risk.

Nowadays, businesses and individuals alike do more of our financial transactions electronically, so we don’t often think about paper checks. But I’m sure that every business still has an old-fashioned checkbook in the office, and that leaves room for a fair amount of mischief. An in-house accountant will in all likelihood have access to that checkbook, as well as your account numbers, and other vital data. I don’t you don’t want to distrust your in-house accountant. But employee fraud is a real risk. The Association of Certified Fraud Examiners estimates that on average, 5% of all company’s revenues are lost because of internal fraud, mostly perpetrated by employees in the accounting department. This risk is completely eliminated with a virtual accountant. They’re not in your office, and they don’t have access to your blank checks.

  • Background checks don’t always tell the whole story.

It has become commonplace to perform fairly extensive background checking on newly hired employees before they start the job. But how much of someone’s past do those really reveal. A background investigation typically includes a criminal records search, but that only really covers incidents in which the individual was actually caught. We ask for references from past employers, but those don’t necessarily tell the whole story either. On the other hand, a virtual accountant is actually an organization with multiple levels of review. You feel secure that they’ve thoroughly screened their staff. You can also trust that there will be additional sets of eyes looking over the work done for your company, to ensure that there’s no dishonesty or foul play at hand.

  • We use the highest available levels of security technology.

I know that it just feels risky to upload all of your mission-critical information into this mysterious place known as “the cloud”. It’s hard to even imagine where your data will actually reside, and who will be able to get access to it. But keep in mind that your information isn’t going to be free-floating somewhere in the stratosphere. In fact, it will reside on highly secure servers, which use the most powerful security technology available today, the type that banks themselves use. We also encrypt all data transferred from you to us and back. So even if someone could intercept that transmission, it would be virtually impossible for them to read your information.

  

Topics: Bookkeeping & Accounting, Virtual Accounting