In 2025, for the first time since 2018, the financial sector has overtaken healthcare in terms of compromised industry. Over 700 breaches affecting more than 48 million individuals were reported. The cost almost skyrocketed to $10 million in the US alone. The numbers are alarming, and they continue to raise concerns. 

Security is everything in an industry like accounting. It is not only important for building and retaining trust, but it is also essential for ensuring business continuity. The cyber threats continue to rise. The more careful accounting firms become, the smarter the attackers become. Now, when you add offshoring accounting to the equation – global teams, remote access, multiple systems, cross-border data exchange, etc, the need for a rock-solid cybersecurity becomes even more critical. 

What many accounting firm owners and leaders don’t understand is that cybersecurity isn’t just an IT need. It is a trust requirement. If your offshore teams aren’t equipped with the right infrastructure, your clients’ financial data is at risk, and so is your reputation.

To help build resilience, here are 5 non-negotiable cybersecurity essentials that your firm must have before partnering with an offshore firm:

Essential 1: Secure Access Controls

Role-Based Access: Giving the Right People the Right Information

This is not only relevant for offshoring, but makes sense in-house too. Not everyone needs access to everything. RBAC, or role-based access controls, gives you the autonomy to have control over who sees what. The data you share should be dependent on an individual’s responsibility. This reduces the risk of unauthorized exposure – accidental or malicious. 

For example:

• A bookkeeper should not have access to high-level tax documents.
• A junior accountant should not see sensitive payroll records.
• A temporary offshore resource should not have permanent system privileges.
  

RBAC ensures data segmentation, minimizes insider threats, and creates strong security hygiene across distributed teams.

Multi-Factor Authentication (MFA): Your First Line of Defense

Hackers rely on password-cracking tools a lot. MFA is a must. MFA requires users to verify identity via two or more factors—such as a code, device authentication, or biometric confirmation.

Benefits include:

• Preventing account breaches even if login credentials are leaked
• Securing system access from unknown devices
• Strengthening remote login policies for offshore teams
  

A secure offshore partner must enforce MFA across all platforms—email, accounting tools, workflow systems, and internal portals.

Essential 2: Encrypted Data Transfer & Storage

Protecting Client Financial Information

In offshoring accounting, there is a lot of movement of financial records – bank statements, reconciliations, general ledgers, tax documents, and more. Without encryption, this data becomes vulnerable during transmission or storage.

With encryption, you can ensure that even if a file is intercepted, it remains unreadable and unusable.

Your offshore partner should support:

• End-to-end encrypted communication
• Encrypted storage for all financial documentation
• Secure access portals for file uploads & downloads
  

Secure File-Sharing Protocols

One of the most common methods of phishing or other cyberattacks is through email. So email attachments are one of the most unsafe ways of sharing data. When sharing critical financial data, it must be transferred through secure channels, such as: 

• Encrypted cloud storage systems
• Access-controlled document repositories
• Password-protected links with limited-time access
  

The goal is to safely move data across borders without exposing your clients.

Essential 3: Regular Security Audits & Compliance Checks

Identifying Vulnerabilities Before Hackers Do

Cybersecurity isn’t something you “set up once”. It requires continuous evaluation. With regular security audits, you can easily uncover weak points, such as: 

• Outdated software
• Unsecured devices
• Access loopholes
• Misconfigured systems
• Policy deviations
  

A mature offshore partner conducts:

• Quarterly vulnerability assessments
• Penetration testing
• Network audits
• Compliance reviews
  

Meeting Regulatory Requirements

CPA firms operate under strict compliance mandates—GLBA, SOC 2, ISO standards, federal/state data privacy laws, and sometimes industry-specific regulations.

Your offshore partner should maintain compliance with:

• SOC 2 Type II security frameworks
• ISO/IEC 27001 information security standards
• Local data protection regulations
  

Compliance is non-negotiable, and it is important that your accounting partner complies with all essential globally recognized security protocols and not just internal policies.

Essential 4: Employee Training & Awareness

Phishing Prevention: Your Team Is the First Firewall

Phishing emails are one of the most common techniques in cyberattacks. It is also a common way for firms to lose money. Sometimes, even the most advanced security systems can fail if employees are not trained to identify malicious attempts. 

That is why it is essential to keep your team members informed through regular training. A reliable offshore partner must provide continuous training on:

• Spotting phishing signals
• Avoiding suspicious links or downloads
• Identifying social engineering tactics
• Safeguarding login credentials
  

Handling Sensitive Data Responsibly

Data breaches often occur due to poor handling practices:

• Saving files on personal devices
• Sharing passwords informally
• Using unapproved communication channels
• Uploading financial documents to unsecured tools
  

When offshore teams are trained, they understand the sensitivity of financial data, the consequences of mishandling information, and the best practices they should be adhering to secure file storage and disposal. A well-trained offshore team can dramatically reduce your exposure to human error—the biggest cybersecurity risk.

Essential 5: Robust IT Infrastructure & Backup Systems

Firewalls, VPNs, and Anti-Virus: Your Digital Security Backbone

When you work with offshore teams, you rely on a secure IT infrastructure for daily operations. Whether it is data transfer, communicating with the team, or keeping task management tools up-to-date, any weaknesses in the systems can jeopardize the safety of your data.

Your offshore partner must have:

• Enterprise-grade firewalls
• Secure VPN access for remote logins
• Advanced endpoint protection
• Real-time malware & ransomware detection
• Network segmentation to isolate critical systems

These measures protect your data from intrusions, malware, and unauthorized access.

Disaster Recovery & Backup Planning

Data loss isn’t always caused by cyberattacks. System failures, natural disasters, or connectivity issues can disrupt offshore operations.

A strong partner must offer daily or real-time backups, data storage across secure locations, defined recovery time objectives (RTO), and recovery point objectives (RPO), business continuity plans for uninterrupted delivery

This ensures that no matter what happens, your accounting workflows remain protected and recoverable.

Offshoring offers access to global talent, cost efficiency, and round-the-clock productivity—but only when backed by strong cybersecurity. SOPs alone won’t protect your clients, neither can word-of-mouth. A few access restrictions won’t eliminate threats. What you need is a partner that views cybersecurity as a non-negotiable foundation, not a feature.

When choosing an offshore accounting provider, evaluate their:
✔ Access controls
✔ Encryption standards
✔ Compliance certifications
✔ Employee training practices
✔ IT infrastructure and backup policies

A secure offshore partner doesn’t just process your numbers—they protect your reputation, your clients, and your peace of mind.

If you’re exploring secure offshore accounting, Finsmart’s enterprise-grade security, global compliance, and structured delivery ensure you scale safely—without compromising trust.

Want to know more? Schedule a free consultation with our team and explore how Finsmart ensures secure, seamless, and scalable offshore accounting for your firm.