3 Important File Sharing Concerns for Accountants

Not only do accounting firms work with some of their clients’ most important documents – expenses, revenue statements, and invoices to their own customers – they also deal with some of the most sensitive. In today’s digital world, these sensitive documents are managed as files exchanged back and forth between the appropriate parties.

And while file-sharing through today’s technology makes many elements of the accounting process easier for all parties, there are also some critical concerns brought up by the new paradigm for sending key accounting documents back and forth.

Below, we’re diving into three of the most important concerns related to accounting file sharing and how you may be able to address some of those concerns with the right accounting practice management software platform.

File sharing security

As we mentioned, accounting firms frequently work with some of the most sensitive documents in their clients’ businesses. Security is of the utmost importance when it comes to dealing with these documents. A lapse in security can cause serious concerns for an accounting firm and its clients. Research suggests that smaller businesses are hit hardest by security failures. In the worst cases, a data breach can deal a fatal blow to a company.

Not only is it vital to protect client files, but it’s also the law. Both the IRS and the FTC have regulations in place that govern how financial preparers must handle their clients’ documents. Failure to follow these regulations can result in steep fines and other legal action.

There are several ways to handle file-sharing security, but one of the easiest is to take advantage of a pre-existing tool or platform that has built-in measures to secure your files. Look for encryption protocols and other indicators that an accounting practice management software tool can help safeguard your files before trusting it with sensitive documents.

Client accessibility

Accounting is a relatively traditional industry. Many accounting firm clients have been doing things a specific way for years, if not decades. Not every client will be amenable to changing the way they manage their documents and files. Even if they are open to doing things a different way, every firm has clients with a wide range of abilities when it comes to technology.

That’s why accessibility is a big concern for all kinds of accounting firms. Everyone has experienced the unfortunate situation where a client needs to do something with a file or message but is unable to work with it. This situation is especially problematic when it involves a specific deadline or date that must be met.

To overcome these kinds of challenges, it’s important for an accounting firm to have files organized in a way that allows clients to easily access, edit, and transmit them.

Privilege and access among accounting practice team members

Even for accounting firms that have a relatively small, lean operation, there’s almost always a need for someone else to access the files being handled during accounting processes. Whether it’s a colleague at the firm who needs to take over working on a particular account, or an administrative assistant who must send something out to be worked on by a client or contractor, there’s going to be a need for others to access the file. But it’s important that the right people maintain the right level of access.

For example, an accounting team member or client may need the ability to read and write a file, while administrators may only need the ability to save and send it. In the best situations, access to files can be managed by user permission level as well as by folder or directory. Problems with user access can cause a serious headache that takes valuable time away from internal team members who need to spend time on more business-critical tasks.

However you decide to manage file privilege, it’s important that it fits seamlessly into your workflow and doesn’t cause any extra work for your team or clients.

Final thoughts on file sharing concerns for accounting firms

When it comes to incorporating technology into any part of your accounting practice, there’s a critical balance to maintain. You want to add technology that makes your existing workflows easier, without interrupting the firm’s day-to-day processes so much that it puts undue stress on your team.

The best way to make every part of your file-sharing process easier to manage is to standardize it using a central software platform that takes care of these individual file-sharing concerns all at once. This way, you can set a company or client-level standard that lets you enjoy the many benefits of file-sharing technology for accounting firms and their clients without worrying about the dangers of a lapse in your security or the administrative headache of unnecessary steps in getting access to files needed to complete projects.