Why Banks are Outsourcing their Bookkeeping & Accounting?

Modern day banks have to rely quite heavily on software solutions in order to keep their systems running smoothly. Without outside help, banks have to dedicate a lot of resources to this process. This is why so many banks have started outsourcing their bookkeeping and accounting to third-parties.

Banks need secure servers where they maintain records of their accounting-related data. Since this data is a core element of any bank’s day to day operations, it is important that banks can access this data at all times. Outsourcing the management of this data to a third-party allows banks to focus on other aspects of their operations.

Modern day bookkeeping is largely digital. There are 3 types of bookkeeping solutions that banks can choose from when they outsource their bookkeeping and accounting:

?   Server Based Bookkeeping: Documents are scanned and sent by its staff over the internet. A secure FTP server is used to store these documents for ensuring the data security.

?   Remote Access Bookkeeping: Instead of sending documents, banks can grant remote access of their systems. Remote access bookkeeping offers more security since sensitive information isn’t being sent back and forth over the internet. This option is ideal for banks that maintain their own data servers.

?   ASP (Application Service Provider) Bookkeeping: Banks that use online accounting software can also get their accounts updated by giving dedicated login credentials which allows updating the books. The documents can be directly shared through the platform.