News
QXAS Inc
Oct 12/2015
Accounts outsourcing
Security before the Idea of outsourcing

Before the idea of outsourcing was introduced, accountancy firms of all sizes were managing their entire operations in-house by default for various reasons like:

  • the need to have control over their staff
  • they had stringent data security
  • it was the only way they could assure accuracy 
  • timely delivery was essential
  • they were not aware of any alternatives.

Early adopters of outsourcing thought of it only as a cost saving strategy with long established companies delivering 40-70% cost savings for their clients.  However, since the 1990s outsourcing of accounting functions has grown exponentially in acceptance across the globe and is in fact now a preferred model even for smaller companies who use it to support their aim for growth and expansion.  

As the concept of outsourcing spread, security of their data and that of their clients’ was the major concern of CPAs.  However, because of the outsourced service providers’ continued dedication and determination to prevent data security and privacy breaches, today over 42% companies in the US are already outsourcing their taxes and 47% are outsourcing payroll (Robert Half 2014 Benchmarking Study), including those very CPAs who hesitated at the start. This has been possible because the security levels being provided by leading outsourcing companies has surpassed in-house security by light years.  Further compliance with federal and international security standards like ISO 27001 has made the outsourced service providers’ security validated at an international level.

For over a decade CPAs/CEOs have seen their peers and notably their competitors reap huge benefits from outsourcing like:

  • more stringent compliance adherence
  • improved control over the process
  • real time intelligence 
  • ease of access to highly qualified staff
  • world class security of their data.

With security of data still being one of the major reasons cited for not outsourcing, let’s have a look at security measures deployed at most accounting firms in house vs. an outsourced service provider like QXAS Inc: 

Security measures

In-house

Outsourcer

Secure client login

Y

Y

Independent leased lines

Y

Y

Encrypted data transfer infrastructure

Mostly No

256 bit secure server

Anti-virus/ Spam /Spyware manager

Generic

Professional license

Multiple internal server backup

N

Y

Email encryption

N

Y

Firewall defences

Y

Y

24/7 manned entry points

N

Y

Dedicated expert IT team

N

Y

Employees sign an NDA as part of the hiring process

N

Y

Continuously monitored web-access

N

Y

Disabled USB ports

N

Y

Authorized staff biometric systems

N

Y

Closed-circuit television cameras

N

Y

Security process standard/risk management certification (ISO27001:2005)

N

Y

Data Contingency Plan

Unlikely

Y

Security breaches

Possible

N

With such stringent measures in place the companies who outsource have started using their new upgraded security as a competitive advantage rather than seeing it as just a “hygiene factor”.

QXAS Inc is a division of QX Ltd that is accredited by ISO and holds the following certificates:  ISO 9001-2008, Certificate # FS 557506, for Quality Management Systems; and ISO: 20071-2005, Certificate # IS 585119, for excellence in Information Security Management Systems.  We have in place appropriate safety controls to securely protect information and intellectual property. As an ISO 27001:2005 compliant organization, we treat information as the most valuable asset and continually assess our systems to ensure the highest level of information security. If you are considering outsourcing, see here the questions to ask your accouting outsourcing partner.

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