How Online Bookkeeping Services Keep Your Business Data Secure

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How Online Bookkeeping Services Keep Your Business Data Secure

16 March 2023
, Blog

When you outsource bookkeeping services to an online provider, the safety of your business data should be one of your top priorities. After all, financial information is pretty sensitive, and you don't want it falling into the wrong hands. That's why online bookkeeping services take several steps to ensure that your valuable information remains secure and confidential.

This article takes a closer look at the measures these providers take to protect your business.

Secure Servers & Firewalls

Online bookkeeping providers use special servers and firewalls designed with security in mind. These systems can prevent hackers from accessing sensitive data stored on the server. The servers house your business's financial information, so they must be kept secure.

Online bookkeepers regularly monitor and update them to guard against any security threats. Firewalls also protect your data from external attacks by acting as a barrier to unauthorized access.

In addition, an excellent online bookkeeper also has protection against malicious software, viruses, and other threats that could potentially damage or corrupt the data stored on their system. These extra measures are designed to keep your business's financial information safe, especially if the provider stores it on a cloud-based platform.

Data Encryption

Another way reputable online bookkeeping services keep your data safe is by encrypting it using industry-standard encryption techniques. This ensures that any information you enter into their system is unreadable unless someone has the right decryption key. So even if a hacker was able to access the server, they would not be able to make sense of or steal any of your business's confidential information.

Encryption also applies when you are transferring data back and forth between your own system and the online bookkeeping service. This helps to protect against any potential man-in-the-middle attacks where someone tries to intercept data during the transfer.

Account Access & Monitoring

Online bookkeepers also monitor access to accounts closely and typically require you to create an account with a unique username and password so that only authorized individuals can access the system. You can disperse these credentials only among those you trust, such as other users in your organization, or even to a third-party audit firm if necessary.

In addition, online bookkeeping services typically keep track of who is accessing the system and when. This allows them to detect any suspicious activity or unauthorized access attempts, as well as monitor any changes or modifications to the data.

Some even go the extra mile and employ additional authentication methods, such as two-factor authentication or biometric identification, for added security. This helps ensure that only approved personnel can gain access to your business's financial information and records. For more information, contact a company like 1099 Accountant LLC.