How safe is my financial data with an outsourced accounting provider?

Data security is the single biggest worry businesses raise before outsourcing, and it's worth taking seriously. Recent UK government research found that over four in ten businesses had experienced a cyber security breach or attack in the past year, so the risk isn't hypothetical — it's a reason to be selective about who handles your data, whether that work is done in-house or outsourced. A properly set up outsourcing provider will store your data on encrypted, cloud-based platforms with role-based access controls, meaning only the people working on your account can see it, and every action is logged.

Because outsourcing your accounting introduces a data processor relationship under UK GDPR, a legitimate provider will always be able to show you a written data processing agreement, explain exactly where your data is stored, and confirm their staff vetting process. Firms that are vague about any of this, or that ask you to share data over unprotected email or spreadsheets, are a warning sign. Before signing up, it's reasonable to ask a provider directly about their software security, access controls, and GDPR compliance — a trustworthy partner will welcome the question. Read more about how we handle this on our Outsourced Accounting Services page.