Modern business revolves around technology, but all too often does IT become a hindrance rather than a crucial asset that drives growth. At the same time, falling behind makes it nigh impossible to keep up with the demands of today’s market. When it comes to accounting, it’s no different. In fact, customers often lament the slow processes and red tape associated with many accounting procedures.
As in any other industry, accounting firms need to be able to focus on their core strengths and technology should empower them to do that. However, it’s easy to end up in a situation where IT takes up too many resources. While major global firms like Deloitte and PwC can afford to maintain their own dedicated IT departments, it’s quite another matter for smaller firms, which nonetheless still need many of the same technology-enabled functions.
Here are four ways small accounting firms can benefit from a managed IT services provider (MSP):
#1. Better risk management
Managing financial transactions comes with a significant degree of inherent risk, a term that makes many accountants anxious. The more complicated systems and processes become, the greater the risk. On top of that is the residual risk that comes from managing ongoing business partnerships and processes.
If you’re not best equipped to deal with these risks in-house, then outsourcing your IT to an MSP can help you dramatically reduce risk. Many MSPs offer backup and disaster recovery (BDR) to provide greater redundancy and help you make sure that things like natural disasters and ransomware attacks don’t result in catastrophic damage.
#2. Boost information security
It might sound harsh, but accounting firms without effective and up-to-date security systems and protocols aren’t fit to do business in today’s world. Due to the high value of the information they routinely handle, the accounting sector is commonly targeted by cyberattackers. Not only will that result in huge losses for your firm, it could also leave you exposed to litigation.
To prevent your firm from becoming another statistic and being forced out of business by data breaches or leaks, you need multiple layers of security. But in-house cybersecurity won’t come cheap when you need to pay the six-figure salaries demanded by cybersecurity specialists. You also can’t afford your IT support to just stick to the nine-till-five business hours. Not only can attacks strike at any time and without notice, but a system outage can result in employees being unable to do anything when they come to work the next day.
Outsourcing gives you 24/7 protection and solutions on demand. Automatic alerts and proactive support help you prevent problems from occurring in the first place.
#3. Scale seamlessly with demand
With support and IT resources available on demand, you can also easily scale with the needs of your clients without having to shell out for huge capital expenditures. No longer does the number of clients you onboard have to be limited by your technology infrastructure.
#4. Achieve technology alignment
Innovation is the hottest topic in business development these days, but that’s not to say most companies are getting it right. In fact, many digital transformation initiatives fail to meet their goals, and this is most often down to a misalignment between business and technology. A lot of times, companies implement a new system at the wrong time.
Making the right choices when it comes to technology requires expertise, not just in technology itself, but also in your industry. Working with an industry-specialized partner gives you access to that expertise without having to pay a full-time salary. A dependable MSP isn’t just a vendor; they have a vested interest in ensuring you make the right investments.
Netcom Solutions offers safe, secure, and compliant technology solutions to accounting firms across Southern California. Call us today for more information.
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