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How Accounting Firms Can Maintain High Standards of Security?

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How Accounting Firms Can Maintain High Standards of Security?

Today, security is a global issue and every business industry is struggling to establish high standards of security for their employees and clients. The big companies like Yahoo are already struggling with data security, now imagine how difficult it will be for the small accounting firms with limited resources to set strong data security channels.

In accounting, breach of data can cause huge trouble and in some adverse cases, CPA firms have to shut down their doors because of small security failures. If you are a CPA and someone steals confidential financial records of your client from your computer, then this will destroy your relationship with your client pretty badly. Additionally, you can be held liable for the financial losses that incurred because of your security failure and bearing such cost for small accounting business isn’t possible.

Data breach costs can range from class-action lawsuits and fines to the cost of recovering data. But, the biggest cost that CPA firms have to bear is the loss of revenue and clients trust.

How to Make your Accounting Firm Secure?

In the last few years, several cases have been recorded where cybercriminals have stolen Social Security Number from outside the IRS and used this information to access IRS e-Filing personal identification numbers to file tax returns electronically. Just one loophole can give access to so much confidential information to the hackers. There is a plethora of high tech security software and tools available in the market, but to make your firm highly secure you have to follow some preventative steps such as.

1.  Constant Security Check-Ups

You have to regularly monitor your security system because you never know when a small security hole can attract hackers. CPA firms should set up periodic reviews to understand the level of data security. They need to make proper IT strategies based on different aspects like –

  • Should data security job be assigned to in house staff or outsource it?
  • Are all the confidentiality agreements of the company maintains high security and privacy?
  • Does a regular risk assessment have been performed?
  • Does your firewalls and security software are in place? Etc.,

2.  Technical Training to Staff

Apart from having the strong antivirus, antimalware and other security tools, CPA firms need to train their staff to follow up the standard security guidelines. That’s because accounting companies staff is trained to handle numbers, but unfortunately, they are not good at maintaining high standards of security. Accounting organizations need to train their employees regarding the basic security protocols such as – multi-factor authentication, data encryption, backup, data recovery management, and business emergency solution in case of a cyberattack.

3.  Physical & Administrative Security

The physical security of accounting firms prevents intruders from harming the business operations. Every employee should be given a special key card to enter work premises and proper visitors log should be maintained. There should be CCTV cameras installed on all the main entry and exit points of the office so that any kind of unethical activity can be recorded.

Hackers are very smart these days, they target the in house staff of the companies to steal confidential information. Your employees can accidentally or under pressure can provide sensitive information to the hackers. So, to avoid such a problem, you should provide administrative access to only selective and trusted employees. CPA firms should control access to data and only share limited information with their employees.

4.  Select your Partner Carefully

Sometimes accounting firms hire outsourced accounting services to share their workload. Especially, small CPA firms use different outsourced services to reduce some of their work burdens during rush seasons. But, while selecting the outsourced accounting services for your business, you have to determine that company has strong security systems because if you share your client’s data with the unsecured company, then this will eventually going to damage your business’s reputation.

Employees Confidentiality – They sign a non-disclosure agreement with their every employee before hiring them and in the agreement, penalty clause is added in case of a data breach. Additionally, they won’t allow their employees to transfer company’s data over their e-mail or devices.

IT Security – The high maintenance of IT security is crucial for accounting companies. But, CapActix has made sure to establish high end IT security by regular security audits, SSL Secure network, antivirus systems, lease line ports connectivity and much more.

Office Security – To protect data physically, CapActix has maintained the office security ground rules as well. They have a proper security check system with 24*7 CCTV monitoring, security guards, fireproof premises, power backups and so on.

Powerful Infrastructure – The latest tech tools are used to by them to keep their system bug free such as licenses Windows OS, dual TFT monitoring, cloud-based servers, UPS backup, firewall, and integrated LAN.

Secure Your Business Today

Security is important and we all know that but it is not feasible for every accounting firm today to adopt higher standards of security measures to protect their data. In acquiring the technology-based security tools and setting up the physical security system, lots of money is required which isn’t possible for small scale business organizations to invest in.

So, if you are a small scale accounting firm willing to provide high-end security services to your clients, then you can find a partner like CapActix who can provide you with the extra level of security. If you have any questions regarding our security system, then drop your queries at email – [email protected] or can call on +201-778-0509.

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