Data security is a must have, particularly in case you work with an offshore accounting firm. In 2025, new U.S and international laws regarding data privacy will impact how businesses work with financial data. When you are outsourcing your accounting overseas the big question is - Are these laws met by your offshore accounting partner?
More U.S startups and small companies are looking for offshore accounting firms in 2025. But saving money should never be weighed down with legal compliance or data security.
In this article, we will walk through what these new laws mean, what your offshore accounting partner must be engaging in, and also how to keep your financial information secure & compliant.
What Has Changed in Accounting and Compliance in 2025?
New information privacy laws took effect in the U.S and worldwide in 2025. These laws were developed as a reaction to cybersecurity risks, cloud accounting programs and cross border data transfers.
Major highlights include :
- U.S Data Protection Expansion Act (DPEA) calls for U.S businesses to make certain that third party vendors which process sensitive financial data are following cybersecurity guidelines.
- Worldwide Data Regulations like GDPR (Europe) and DPDP (India) are being enforced for offshore vendors.
- Cloud tools like QuickBooks, Xero and NetSuite now require new encryption and access protocols.
In case your offshore accounting firm in the USA (or elsewhere) is unaware of or adjusting to these changes, your business might face penalties, lawsuits or data leaks.
Why Data Security in Offshore Accounting is Important
When you outsource accounting, you trust someone with sensitive data- bank records, payroll details, tax IDs & customer invoices. Any breach or mismanagement can cause:
- Data theft or ransomware attacks.
- Lawful penalties from the IRS Audits or state regulators.
- Loss of customers' trust.
- Losses and issues with taxes.
This is exactly the reason compliance in offshore accounting is not a checklist item, it is a business imperative.
At The Fino Partners, we help U.S startups & small businesses take advantage of offshore accounting without breaking any laws.
Red Flags to Watch For When Outsourcing Accounting
Not every offshore accounting firm follows exactly the same standards. If your partner violates protocols, you pay the price. These are some warning signs:
They don't specify data security protocols upfront
If you aren't hearing about encryption, access control or compliance policies, run.
They normally use out-dated software or even store data locally
Reputable offshore accounting companies use secure cloud-based platforms like QuickBooks Online, not Excel on someone's desktop.
They do not give written agreements on data handling
You are in danger when there's no service level agreement (SLA) describing how your data is protected.
They will not speak about international compliance
Companies which do not know GDPR, DPDP, or U.S tax & secrecy laws are risky partners.
6 Ways to Make Sure Your Offshore Accounting Firm is Compliant
Here is exactly how to ensure your offshore accounting partner is doing things right things in 2025:
1. Ask About Their Security Certifications
Check for certifications such as:
- ISO 27001 (data security).
- SOC 2 Type II (for system and organization controls).
These demonstrate that the offshore accounting firm follows international best practices for keeping your data secure.
2. See If They Use Secure Cloud Based Tools
A modern offshore accounting firm in the U.S or even abroad should use encrypted, cloud based tools including :
- QuickBooks Online
- Xero
- NetSuite
Such tools offer multi-factor authentication, role-based access and real-time backups-key for compliance.
3. Request Data Handling Policy
A great partner like The Fino Partners may have policies which answer :
- Where do they store data?
- Who has access?
- How long is data retained?
- What if there's a breach?
In case your present firm can not answer these, perhaps you should reconsider.
4. Check Their Compliance with Global Laws
Your offshore partner ought to be in compliance with :
- GDPR (for clients with European customers)
- Transfer of data rules DPDP Act (India)
- IRS & FINCEN requirements for U.S financial data.
Don't assume they know, ask and verify.
- Confirm NDA and Legal Agreements
You need :
- Non-disclosure agreements (NDAs)
- Data Protection Agreements (DPAs)
- Service Level Agreements (SLAs)
These documents hold the offshore accounting company accountable for your data and protect you legally.
6. Ask About Incident Response Plans
In case anything goes completely wrong- a data leak, ransomware attack, or unauthorized access, your accounting partner requires a backup plan.
Ask them :
- Who gets notified?
- What actions are taken?
- How is your data recovered?
At The Fino Partners we provide our clients 24/7 response assistance and complete transparency in case of an incident.
What Do The Fino Partners Do Differently?
Being a top offshore accounting company in the U.S, we do more than bookkeeping and compliance checkboxes.
Here is the way we remain ahead :
- Dedicated U.S compliance officers up to date on new laws.
- End-to-end encryption & MFA (multiple authentication) for all systems.
- Internal and external audits and risk assessments are conducted regularly.
- All staff training on compliance in offshore accounting and client privacy.
U.S based client managers so you always have somebody speaking your language, legally and literally.
In 2025, outsourcing to an offshore accounting firm in the USA or abroad makes sense if you are an expanding business attempting to save costs. But do not compromise on compliance in offshore accounting because you're outsourcing. You still own your company's data security even when a 3rd party handles your books.
Related Resource
- How Offshore Accounting Services Are Powering the Growth of U.S. Startups in 2025
- Choosing the Right Offshore Accounting Firm: A Guide for U.S. Companies
- Fix Offshore Accounting Challenges with Expert Tips
Good news? With partners like The Fino partners, you get cost savings without compromising compliance. We help U.S companies scale responsibly, with safe, compliant and cloud-based overseas accounting systems.
Contact The Fino Partners today to learn how we help U.S businesses remain compliant yet lean.
