While every CPA and accounting professional understands the importance of protecting sensitive client data, it isn’t always taken as seriously as it should be, and proactive measures that go beyond the basic, are not always taken.
As one of the sectors most frequently targeted by cybercriminals, accountants and CPAs must stay updated with the latest best practices for cybersecurity, even if they outsource tax preparation. While third party service providers are renowned for their stringent data protection measures, it pays not to take anything for granted, and these should continually be reviewed and assessed to check for potential risks or gaps.
To keep your clients financial and personal data as confidential as it deserves to be, here are some cybersecurity best practices:
Have strict password security protocols in place
Complacency can be a terribly destructive thing, and while your passwords might be easy for you to remember, this might make them even easier for hackers to access.
Passwords should combine differently cased letters, numbers and symbols, and be as long as possible. Don’t use information that’s easy for hackers to guess; as although this might sound like common sense, you’d be surprised how many professionals still do this.
Use multifactor authentication
Strong passwords are a good first step, but this isn’t enough. Adding more protective layers to confirm the user’s identity are needed, such as biometric data, a personal identification number, or an identifier like a smartphone.
Use the right cybersecurity software
Make sure your cybersecurity software is designed for the task at hand, and meets all industry regulations. With the right cybersecurity software in place, you can create a virtually impenetrable security wall against cyber criminals.
Constantly update software
You should always be using the latest version of software to give your firm and its data maximum protection against cybercrime. You should also make sure that all data is backed up continually, and you may wish to use cloud storage, as it offers data syncing in real-time and for the purposes of creating an audit trail: file versioning.
Lock devices at all times
Locking devices should become a habit for everyone working in an accounting or CPA firm, and helps to prevent unauthorized access and keep sensitive information from getting into the wrong hands. This practice is a simple but highly effective one.
It’s also important for management teams to stress the significance of data security to everyone working within the firm, helping to make sure that complacency and laziness don’t lead to breaches that could so easily have been avoided.
With cybersecurity now a necessity in this modern, tech dominated world, offshore bookkeeping services, CPA firms, bookkeepers, tax professionals and anyone working in the finance industry, must be extra vigilant and never let their guard down, particularly when it comes to protecting sensitive client data. Fortunately, even outsourced service providers are now taking the threat of cybersecurity seriously, and you may even find that if you hire them, their security protocols and strategies are more stringent than your own, which should give you an incentive to update yours!
