{"id":542,"date":"2022-11-23T17:16:16","date_gmt":"2022-11-23T23:16:16","guid":{"rendered":"https:\/\/cmitsolutions.com\/bothell-wa-1091\/?p=542"},"modified":"2025-03-05T09:32:01","modified_gmt":"2025-03-05T15:32:01","slug":"how-accounting-firms-can-protect-their-client-data","status":"publish","type":"post","link":"https:\/\/cmitsolutions.com\/bothell-wa-1091\/blog\/how-accounting-firms-can-protect-their-client-data\/","title":{"rendered":"How Accounting Firms Can Protect Their Client Data"},"content":{"rendered":"

One of the top priorities for anyone in the accounting industry should be protecting client data.\u00a0<\/span><\/p>\n

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 \u2014 which means they\u2019re a major target for cybercriminals.<\/span><\/p>\n

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.\u00a0<\/span><\/p>\n

According to the <\/span>2021 Cost of a Data Breach report<\/span><\/a>, 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.<\/span><\/p>\n

[Related: 5 Questions to Assess Your Company’s Cybersecurity Risk<\/a><\/b>]<\/b><\/p>\n

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 \u2014 and cost your firm not only money but also clients and reputability.<\/span><\/p>\n

Here are a few ways accounting firms can protect their client data.<\/span><\/p>\n

Keep Up-to-Date Software<\/span><\/h2>\n

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\u2019s firewall with the latest patches. Cybercriminals\u2019 methods are constantly evolving, so having the newest patches and updates in your protective software is a crucial layer of protection.<\/span><\/p>\n

Implement Multi-Factor Authentication<\/span><\/h2>\n

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.\u00a0<\/span><\/p>\n

For example, for the best defense, your accounting firm can use logins that require both the basic credentials and one other factor:\u00a0<\/span><\/p>\n