Questions to ask before sharing client data with an outsourcing partner
Your clients trust you with sensitive financial information, and that responsibility does not transfer when you outsource. Before sharing any data, it is worth asking a potential partner a handful of direct questions. Good partners will answer them easily and in writing.
Is everyone covered by a confidentiality agreement?
There should be an NDA between your firm and the partner, and every individual who works on your files should be bound by confidentiality terms in their employment contract.
Can you work inside our systems?
The safest arrangement is for the outsourced team to work directly in your cloud accounting and tax software using individual logins you control. Data then stays in your environment and access can be removed instantly.
How are files transferred?
Where documents must be exchanged, they should move through a secure portal or your document management system, never by personal email or messaging apps.
What controls are in place in the office?
Ask about practical safeguards.
What happens when the engagement ends?
Agree in writing that access is removed the day work ends and that any files held are returned or deleted. A good partner will have this as standard practice.
