Accounting firms are entrusted with large volumes of sensitive information, such as Social Security numbers, tax returns, and banking details. Unfortunately, this can make them prime targets for cybercriminals.
What’s more, these smaller firms often don’t have the in-house cybersecurity teams that larger firms have, making them more vulnerable. That’s why accounting firms need to have in place the following essential cybersecurity measures:
Implement multifactor authentication (MFA)
Relying on passwords alone is no longer sufficient, they need MFA as an extra layer of security. Users need to verify their identity using a secondary method, be it a text message code or through a smartphone app. This makes it significantly harder for hackers to break into the firm’s system.
Encrypt all sensitive data
Encryption turns your sensitive data into unreadable code, useless to anyone without the decryption key. Encryption protects your data both at rest (on your devices and servers), and in transit (during file transfers or email exchanges), making it an essential tool for securing confidential information such as tax documents and payroll files. Ideally, you should implement end-to-end enterprise encryption to ensure that all data is encrypted from the moment it is created or collected, until it is deleted.
Regular software updates and patch management
Cybercriminals often take advantage of outdated software by exploiting its weaknesses. That’s why patch management is crucial. Always update everything, including operating systems, browser plugins, and even your accounting applications to reduce their vulnerabilities. You can even automate the process with software that checks for updates and installs them automatically.
Use secure cloud accounting tools
Cloud accounting platforms are available for firms to use. These online platforms offer flexibility, but not all are equal when it comes to security. That’s why you need to choose platforms with strong security features, like audit trails, built-in encryption, and user permissions.
Your staff should be trained on how to access cloud services safely. Use a secure private Wi-Fi network, avoid public networks, and ensure employees’ devices have antivirus and firewall protection.
Train your team on cybersecurity awareness
No matter how advanced your security tools are, your system can still be compromised by something as simple as an accidental click on a malicious link or attachment. Regular training is therefore essential to help employees recognize threats such as suspicious emails, social engineering scams, and malware. By teaching your staff to spot red flags, use secure passwords, and report unusual activity immediately, you can significantly reduce the risk of a security breach.
Conduct regular data backups and testing
Backing up your data is necessary. But equally essential is making sure that those backups work. If you don’t test the recovery process, you may find out too late that the backup was incomplete or corrupted.
To avoid this, follow this process:
- Set up automatic daily backups
- Store them securely (preferably off-site or in the cloud)
- Always perform regular recovery tests
This way, you’ll be able to restore operations quickly should a cyberattack or hardware failure occur.
Limit access with role-based permissions
It’s crucial to limit access to files as much as possible. For example, a junior accountant shouldn’t be able to access the full client database or payroll systems. By limiting your staff members’ access to files based on their job roles, you’ll help prevent potential threats plus reduce the risk of accidental data leaks. For a more controlled and secure work environment, you should define user roles and assign permissions accordingly.
For small and mid-sized firms in the Bay Area and beyond, partnering with a local expert like Digicom Technology Solutions can give you peace of mind as you focus on growing your business. Unsure if your current cybersecurity measures are enough? Time to get a professional assessment. Contact us at Digicom Technology Solutions today.
