One of the top priorities for anyone in the accounting industry should be protecting client data.
Accounting firms routinely gather sensitive data and personal identifiable information (PII) from their clients, such as bank account information, Social Security numbers, earnings statements and business information — which means they’re a major target for cybercriminals.
Clients look for trust and security when they search for a CPA. If you work in accounting, you know that just one data breach can throw a wrench into your reputation and make your business lose trust.
According to the 2021 Cost of a Data Breach report, professional services like accounting firms can reach an average cost of $4.65 million per data breach, with loss of business responsible for nearly 40% of the total cost.
[Related: 5 Questions to Assess Your Company’s Cybersecurity Risk]
Client data protection requires many levels of security strategy, and that strategy incorporates technology as well as basic employee precaution. A lackluster data protection plan can be devastating — and cost your firm not only money but also clients and reputability.
Here are a few ways accounting firms can protect their client data.
Keep Up-to-Date Software
The only way antivirus and anti-malware software can provide protective services is by running on the latest versions. Ensure your accounting firm keeps them current and updates your firm’s firewall with the latest patches. Cybercriminals’ methods are constantly evolving, so having the newest patches and updates in your protective software is a crucial layer of protection.
Implement Multi-Factor Authentication
Multi-factor authentication is the practice of accessing information not solely through the basics, like an email and password. It demands additional information to bolster security.
For example, for the best defense, your accounting firm can use logins that require both the basic credentials and one other factor:
- Additional security questions
- A code sent to a separate device
- Biodata, like fingerprints or facial recognition
[Related: How Would Multi-Layer Defense Help Your Company?]
Organize Employee Training and Education
The first defense against cybersecurity threats and data breaches is employee knowledge. This is why organizing ongoing employee training and education is so crucial. Tell your staff what to look out for regarding risks like phishing scams and cybersecurity threats, and make sure they know how to respond.
Without these guidelines, your accounting firm could suffer devastating breaches, costly downtime and a bruised business reputation. Empower your employees with the knowledge that they’re an essential part of your firm’s security.
Perform Regular Security Assessments
It’s important for accounting firms to regularly evaluate their security plans and assess whether anything needs updating or improvement. Periodically scheduled reviews can help your firm understand your security gaps and prepare you for any future challenges.
[Related: How to Protect Your Business From Cyber Threats]
Partner With CMIT Solutions of Bothell
Cybersecurity should be a priority for your firm, but you shouldn’t have to manage it alone.
Partnering with an IT professional like CMIT Solutions of Bothell can solidify your security and protect your firm from a variety of threats. We partner with companies in a wide range of industries to provide around-the-clock maintenance and IT support so you can focus on what matters — growing your business and connecting with your clients.
CMIT Solutions is ready to help. Contact us today, and let’s get started.
Featured image via Pixabay
