Skip to content
The risks of having an internal accounting department
Some small to medium businesses opt to do their accounting internally – and while doable, it is important to ensure any data is handled and stored securely. Keeping your internal data safe is a little trickier than it used to be – there’s more to it than choosing a complicated password! In this article, we explain the top 3 internal accounting risks and how you can prevent them.
What are the risks of having an internal accounting department?
- Internal data breaches
We put a lot of trust into our accounting personnel – and while we like to think the vast majority of our employees work with candor and transparency, it is a sad reality that not all of them do.
- External data breaches
Even if you have treated your data to the slickest security processes around, external data breaches can happen. Hackers are smart and their behaviour starts well before we find out about their malicious behaviour.
- System failure and technical issues
Systems do crash and fail if they are not maintained properly… or even just because they feel like it, especially if they are old! If all of your business’s accounting is trapped on a failed computer and you’ve no back-up – you’ve got a serious problem.
How can I prevent the risks of internal accounting?
A large portion of internal accounting risks can be eliminated by switching to cloud-based accounting, or by using cloud software such as QuickBooks.
If you’re still using traditional accounting methods and require further knowledge on how to stay safe, we highly suggest Jupiter IT https://jupiterit.co.uk who specialise in cybersecurity.
Learn more about cloud accounting today
If you found this article useful, then we have lots of extra tips for you! To learn more about cloud accounting and how to keep your accounts in-house securely, kindly get in touch with us today.
Continue reading about cloud accounting
Quick guide on how to upload your expenses with Receipt Capture from Quickbooks
