# Is your client data fully secure?-Magazine
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-06-13
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Safeguarding Electronic Documentation: Best Practices
Meta Description: Discover the best practices for storing files securely and protecting client data with electronic documentation and e-signatures. Ensure compliance and
URL: https://financedigest.com/is-your-client-data-fully-secure-magazinehtml

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_E_ _lectronic documentation and e-signatures offer accountants and practices many benefits including time and cash savings. But how do you ensure that your files – and more importantly, your client’s information and data – is being stored securely?_

![Mark Woolley](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/mark-woolley-commercial-di-300x300-1736843763889-compressed.jpg)

Mark Woolley

_Here, Mark Woolley of Reckon Software offers best practice advice on safeguarding your files for optimum security when using electronic documentation._

Poor [data storage and security is costing UK businesses their money](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE"), reputation and time. We’ve seen in recent news, the TalkTalk [data breach](https://www.financedigest.com/when-not-if-why-a-data-breach-response-plan-is-more-important-now-than-ever.html "When not if: why a data breach response plan is more important now than ever") being one example, that even sizeable companies are not immune to the growing threat of cyber-crime.

The General Data Protection Regulation (GDPR), which will come into force in the UK before we leave the EU, will allow accounting clients to claim damages for data loss and unlawful processing. In fact, the UK Information Commissioner has already [suggested that up to £5 million](https://www.financedigest.com/new-research-suggests-over-13-million-brits-were-inadequately-managed-while-working-remotely-2.html "NEW RESEARCH SUGGESTS OVER 13 MILLION BRITS WERE INADEQUATELY MANAGED WHILE WORKING REMOTELY*") may have to be budgeted by some large organisations for compliance reforms.

With such high fines at risk and reputations on the line, businesses need to seriously re-think the way in which they store information and data.

So, what can accountants do to ensure they are ready for information and [data storage](https://www.financedigest.com/data-storage-market-revenue-is-expected-to-increase-at-a-cagr-of-13-6-during-2021-2025.html "Data Storage Market revenue is expected to increase at a CAGR of 13.6% during 2021-2025") in our digital age? The answer is simple – go electronic.

Electronic Document Management (EDM) systems use [secure web](https://www.financedigest.com/secure-web-gateway-market-expectations-growth-trends-highlighted-until-2029.html "Secure Web Gateway Market Expectations & Growth Trends Highlighted Until 2029") interfaces that allow better sharing of information, via phone, desktop or tablet. Encryption level [security settings](https://www.financedigest.com/u-s-russian-officials-set-for-security-talks-on-january-10-u-s-official.html "U.S., Russian officials set for security talks on January 10 – U.S. official"), disaster recovery in case of fire, floor or cyber-attack and compliance with EU data protection regulation are all part of the electronic documentation package.

But with numerous EDM [systems on the market](https://www.financedigest.com/cyber-physical-system-market-to-witness-a-cagr-of-8-7.html "Cyber-Physical System Market to witness a CAGR of 8.7% "), how can accountants and clients make sure the system they choose offers the level of security needed today?And, more importantly, how do we get the most out of such intelligent software?

1. **Trust electronic signatures**

Remain competitive and invest in a [future proofed](https://www.financedigest.com/staying-ahead-in-the-digital-era-a-cfos-roadmap-to-future-proof-solutions.html "Staying Ahead in the Digital Era: a CFO’s Roadmap to Future-Proof Solutions") system that offers an e-signature facility.

As electronic signatures [become more readily accepted as legal](https://www.financedigest.com/property-letting-could-become-a-legal-minefield.html "PROPERTY LETTING COULD BECOME A LEGAL MINEFIELD") evidence, it’s important for accountants not to doubt their reliability over handwritten signatures. In light of new regulations that became effective in July 2016, the benefits have become text book and electronic identification is [expected to fuel e-signature adoption](https://www.financedigest.com/increasing-adoption-of-ar-and-vr-in-gaming-expected-to-drive-growth-of-the-global-ar-and-vr-market-through-2025.html "Increasing Adoption of AR and VR in Gaming Expected to Drive Growth of the Global AR And VR Market through 2025").

For businesses with various office locations, this feature is particularly important and will help to ensure internal as well as external reassurance. Accountants will no longer need to rely on postage to receive signatures, making administrative procedures faster and more reliable.

2. **Encrypt your data securely**

EDM systems offer the option to encrypt your client and personal data, it is of the utmost importance that users do so to the highest possible level, particularly when transferring information via email.Exchanging documents is even more secure when it’s done via a secure portal. As portals become more popular, [transferring data](https://www.financedigest.com/the-gdpr-and-the-future-of-data-transfer-by-ben-seretny-head-of-dpos-the-dpo-centre.html "The GDPR and the future of data transfer – by Ben Seretny, Head of DPOs, The DPO Centre") via email will become out-dated.

Encryption is key to safeguarding accountancy data and reputation. No excuses, the tools are there and must be used to comply with the law.

For the highest possible security level, look for a [system which holds](https://www.financedigest.com/energy-utilities-sector-to-hold-60-share-in-switchgear-monitoring-system-market-by-2031.html "Energy & Utilities Sector To Hold 60% Share In Switchgear Monitoring System Market By 2031") a recognised certification.

3. **Control in-house documentation**

Accountancy [businesses are just as liable to a security breech internally](https://www.financedigest.com/chinas-international-flight-suspensions-leave-travellers-stranded-hurt-businesses.html "China’s international flight suspensions leave travellers stranded, hurt businesses") as well as externally.

It is paramount that data sensitive documents do not land in the wrong hands. To avoid legal implications, businesses can use an EDM system to assign security levels for all [staff members](https://www.financedigest.com/gumgum-appoints-new-staff-members-across-germany.html "GumGum appoints new staff members across Germany") accordingly.

4. **Ensure that the system meets best practice advice for ICO**

The Information Commissioner’s Office (ICO) has indicated that sensitive personal [data should not be transmitted unless encrypted to current](https://www.financedigest.com/shock-data-logger-market-2021-outlook-current-and-future-industry-landscape-analysis-2029.html "Shock Data Logger Market 2021 Outlook, Current and Future Industry Landscape Analysis 2029") standards. If businesses abide by their recommendation, there should be no room for error or legal liability – something all accountancy firms surely wish to avoid.

Whilst businesses can blame lack of time or understanding, regulations which will [come](https://www.financedigest.com/why-is-accounting-coming-up-short-when-it-comes-to-new-hires.html "Why is Accounting Coming Up Short When It Comes To New Hires?") into force in May 2018 will make the task of securing data mandatory for all accountants handling client accounts.

To future proof your business, spend time [researching the right EDM systems](https://www.financedigest.com/emission-control-systems-market-to-increase-at-a-cagr-of-5-through-2021-to-2031-persistence-market-research.html "Emission Control Systems Market To Increase At A CAGR Of 5% Through 2021 to 2031: Persistence Market Research"), speak with experts in the field and find a system that is simple to use and complies with the law.

Mark Woolley is commercial director at [Reckon](https://www.reckon.com/uk/).

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“Original publication in Finance Digest Issue 1 https://www.financedigest.com/finance-digest-print-magazine/”
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