Financial Data Security in Outsourced Finance: What UK Businesses Should Know

Outsourcing finance means giving another team access to some of your business's most sensitive information. Bank details, payroll records, invoices, employee information, and financial reports may all pass through an outsourced finance department, making security and confidentiality an important part of choosing a provider.

The risk is not theoretical. The UK government's 2025/26 Cyber Security Breaches Survey found that 43% of businesses experienced a cyber security breach or attack in the previous 12 months, rising to 65% of medium-sized and 69% of large businesses.

So, before choosing outsourced accounting services, businesses need to understand how their financial data will be handled and protected.

Check How Your Financial Data Is Protected

Good financial data security starts with understanding who can access your information and how.

Ask potential providers about access controls, the systems used to store and exchange information, how staff access is managed and what happens when someone leaves the team. It is also worth establishing how security incidents would be detected, escalated and communicated.

These are not simply nice-to-have precautions. ICO guidance states that UK GDPR requires organisations to use appropriate technical and organisational measures to protect personal data, covering areas such as managing security risks, protecting against cyber attacks, detecting security events and minimising their impact.

Security also needs to work alongside transparency. Sanay, for example, combines its outsourced accounting services with Xero, giving clients access to their books and financial information through cloud-based dashboards.

Look Beyond the Provider Itself

Your finance provider may rely on accounting platforms, cloud services and other technology, so financial data security also extends to the wider supply chain.

Third-party risk is receiving greater regulatory attention. In March 2026, the FCA reported that more than 40% of cyber incidents reported to it during 2025 involved a third party. Its new incident and third-party reporting rules for regulated firms will take effect in March 2027.

Even businesses outside the FCA's scope can take something from this: understand which third parties have access to financial information and how those relationships are managed.

This is also where the provider's experience with its technology matters. One Sanay client, Christopher of Easy Ear Training, highlighted the team's knowledge of Xero and online bookkeeping, while another, Rob of Team Incredible, specifically praised the team's knowledge of both Xero and third-party tools.

Security Should Be Part of the Outsourcing Decision

Security and compliance matter, but they are only part of the outsourcing decision. You are ultimately trusting another team to become involved in the day-to-day financial running of your business.

Kirsty, Director at Neal Consulting, described Sanay as a "safe and capable pair of hands" when assisting with the company's accounts and bookkeeping, while also highlighting the team's responsiveness and support with compliance.

No internal or external finance function can realistically promise that a security incident will never happen. Instead, businesses comparing outsourced finance services should consider how a provider protects confidential information alongside how effectively it can support the wider finance function.

Want to see what that could look like for your business? Get a personalised cost and ROI analysis in under 3 minutes to compare your current finance setup with Sanay's outsourced approach.