Green Flags to Look for When Selecting a Managed Service Provider

IT infrastructure is the backbone of modern financial organizations, including accounting firms. Businesses that are responsible for taking measures to safeguard sensitive financial data while ensuring smooth daily operations must have the right technology and security in place. Yet, configuring, managing, and optimizing IT systems in-house is often costly, complex, and time-consuming.

This is where Managed Service Providers (MSPs) come into the picture. The right MSP will specialize in offering tailored, scalable IT solutions for accounting agencies that streamline day-to-day ops, enhance security, and boost broader productivity.

However, not all MSPs are perfect fits for every business, with many offering different foci and varying strengths for certain industries. Choosing the right MSP for your firm is a strategic decision that impacts efficiency, profitability, and security. We've compiled a list of the main green flags you should look for in a managed service provider that indicate they can make your life easier by following best practices and offering managed access to IT solutions for accounting firms.

Expertise Tailored to the Accounting Industry

One of the most important factors when selecting an MSP is their experience and expertise within the accounting and financial services industries. Accounting firms face unique challenges, such as complying with financial regulations by adhering to strict data security standards while working with specific tax software, practice management tools, and other software.

In order to find the right MSP for your firm, be sure to find someone with industry-specific knowledge as well as high levels of experience with financial software. Look for providers with proven expertise in supporting tax, auditing, the unique laws and regulations that apply specifically to CPAs, and accounting software solutions such as QuickBooks, Xero, the Wolters-Kluwer suite, and any tax preparation tools your firm may use. 

Compliance and Cybersecurity Capabilities

With cyber threats increasing daily, firms must also ensure their MSP is proficient in protecting sensitive financial data from breaches, ransomware attacks, and internal threats. This involves not only knowledge of the latest cybersecurity protocols but also a deep understanding of compliance frameworks that govern data security.

When shopping among candidates for your MSP, ask about their security policies. We recommend that you opt for those that employ EDR solutions and maintain MDR capabilities. The MSP should help your firm maintain compliance with data protection regulations and industry standards such as the new FTC Safeguards Rule, Payment Card Industry Data Security Standard (PCI DSS), and General Data Protection Regulation (GDPR).

Proactive Maintenance and Monitoring

IT downtime is not only inconvenient, but it can also lead to lost revenue. CPAs need an MSP that offers proactive endpoint monitoring and maintenance to prevent technical issues before they occur and respond quickly should problems arise. Additionally, MSPs should regularly assess network vulnerabilities and provide continuous improvements to their security infrastructure. Look for an MSP that provides real-time monitoring for potential threats and system vulnerabilities to anticipate problems before emergency responses become necessary.

Disaster Recovery and Data Protection

In a field where clients trust you with their most sensitive financial data, you cannot afford to lose data or experience long downtime during system failures. Disaster recovery services are essential for financial firms, as they ensure business continuity in the event of a cyberattack, hardware failure, or natural disaster. This is best facilitated through cyber insurance, so look for an MSP that can help your firm qualify for a policy that can protect against a catastrophic loss.

Your MSP should offer frequent and secure backups, ensuring data can be quickly restored if lost. Furthermore, they need to be comfortable creating and implementing a well-defined disaster recovery strategy that includes protocols on how the MSP plans to restore your services after an outage.

Adaptability and Growth Support

It’s a well-known fact of the industry that most organizations will deal with seasonal spikes in workload. Tax season can be a busy time, and all that work can demand a lot from a firm’s IT infrastructure. A good MSP will offer scalable solutions that can expand as needed, providing additional resources during peak times and reducing services during slower periods.

This means that when shopping for providers, you should open a discussion on their approach to handling change and growth. An MSP who understands your firm’s scalability needs should not charge extra or penalize you for adding and removing staff throughout the year. A provider who is flexible will understand your busy season and anticipate your need to add or remove staff throughout the year. One of the best offerings for accounting firms is self-service so you can adjust your accounts on your terms while only being charged for what you're currently using.

Cloud-based SaaS providers often have highly flexible options that can adapt quickly or even in real time based on network and other resource utilization. In any case, when you hire an MSP, be sure that can adjust resources based on your firm's needs, offering flexible service plans that grow with current demands as well as with the growth of your firm.

Real-Time Access and Transparency

Transparency in IT management is crucial, especially for firms handling sensitive financial transactions. MSPs should provide real-time visibility into the performance of your systems, giving your firm full insight into the health and security of your IT infrastructure. This includes both real-time reporting via user-friendly dashboards and transparency in Service-Level Agreements (SLAs).

An effective SLA should detail response times, resolution times, and accountability will help you measure the MSP’s effectiveness. Be sure they also let you observe what group policies are in place so you can maintain situational awareness over the configuration across your stack in case adjustments are needed.

Commitment to Innovation and Long-Term Strategy

To stay competitive, your accounting firm needs to keep up with emerging technology trends. Whether you’re seeking to integrate artificial intelligence, automation, or advanced analytics, the right MSP will serve as more than just an IT provider for you and your people; they’ll be a strategic partner who helps you innovate and stay ahead of the competition.

When vetting MSPs, ask how they incorporate advanced technologies like AI, machine learning, and automation to streamline accounting processes. If you’re getting closer to making a hiring decision, you can even ask for a conceptual roadmap that outlines how the MSP plans to support your firm’s growth and technology needs.

Secure Support Services

Security should never be compromised. It’s essential to ensure the MSP has the necessary security protocols in place to protect client data. If you need additional assurances, request references from other accounting firms or look at case studies to understand how the MSP has ensured IT function and security for organizations like yours. As always, we recommend that they keep your systems updated with the latest anti-malware definitions and have Endpoint Detection & Response (EDR) and Managed Detection & Response (MDR) services on guard around the clock so you can sleep at night.

Cloud Capabilities

Local IT providers may lack the experience, disaster recovery plans, and security investment required to protect sensitive data. When comparing cloud-based against in-house IT solutions, in-house providers often come with high costs and constant maintenance. In contrast, an increasing number of CPAs are seeking MSPs to help with transitioning to cloud solutions for their significant advantages, including specialized handling for accounting applications, 24/7 support, scalability, and advanced security measures.

A CPA-focused MSP should provide a hosted, tailored cloud migration experience with ongoing support. This is key to not only making the entire process easier, but to making the most of cloud hosting as a valuable solution for accounting firms looking to enhance security, efficiency, and flexibility.

Conclusion

The right Managed Service Provider serves a greater function for your company than just an IT manager. If you find the right MSP, they also act as a strategic partner who helps your firm grow, stay secure, and innovate. By selecting an MSP with expertise in the accounting industry, robust security measures, scalable services, and a commitment to future innovation, your firm can focus on its core operations while achieving greater efficiency, productivity, and profitability.

Cetrom is an MSP offering specialized support tailored to accounting firms. With 24/7 customer service that received a top 5% ranking in Microsoft’s Customer Satisfaction Index, your firm can count on dependable, high-quality assistance. Cetrom provides custom cloud solutions designed to meet CPA-specific needs, combined with a proven track record of zero downtime and strong reliability, which makes us a top choice for firms seeking comprehensive IT management.