As one of the most targeted sectors by cybercriminals, accounting firms are three times more likely to fall victim to cyberattacks than other businesses. It’s no secret that accounting firms hold highly sensitive data like client information, confidential business plans, and transactional records, which make them such appealing targets to cybercriminals.
With cyber threats on the rise, the Cybersecurity Awareness Month message of “securing our world” couldn’t be more timely and relevant. As cybercrimes plague the accounting industry, it’s more crucial than ever to invest in your cybersecurity infrastructure and adhere to accounting cybersecurity best practices to keep your clients’ data safe from breaches and your firm from crippling financial and legal repercussions.
In observance of the annual October Cybersecurity Awareness Month, here are eight cybersecurity tips to protect your accounting firm against cybersecurity threats.
Password Security Protocols
Multifactor Authentication
Audit Trails
Accounting Cybersecurity Software
Constantly Updated Software
Backed Up Data
Locked Devices
Clean Employee Records
1. Password Security Protocols
Password creation is where some accounting firms get complacent. Some passwords like “admin12345” might be easy to remember, but they’re also easy to hack.
When you create your password, make sure to use a mix of characters – letters in different cases, numbers, and symbols – and make it long as well. Don’t use easy-to-guess, personal information like your birthday or your birth year. Create a truly unique, hard to guess combination to make it harder for brute-force attacks to happen.
Here are other useful tips for accounting firm owners and employees when dealing with passwords for their company accounts.
- Regularly change your personal and work passwords.
- Never let anyone know about your personal and work accounts.
- Never share passwords between personal and work accounts.
- Implement a password manager for safe password storage.
- Educate your employees through refresher courses and training programs for up-to-date cybersecurity awareness and measures.
2. Multifactor Authentication
Sometimes, complex passwords just won’t suffice. If you want to create the best information security measures that are suited for your firm, then you should include more layers of protection in your current security protocols.
Multifactor authentication involves more than a username and password to authenticate the identity of the account holder. It requires factors or identifiers, like a personal identification number or PIN, your smartphone, or your biometric data.
When using biometrics in lieu of passwords, your firm should consider utilizing technologies like facial recognition, fingerprint sensors, and iris or retinal scanners to ensure that the people accessing the data in your accounting firm are truly your trusted employees.
Meanwhile, authenticator apps are helpful as well when you’re adding that extra layer of protection to your sensitive data. Whether your team uses Google or Microsoft, both have their own authenticators to track and identify employee activity accurately.
3. Audit Trails
An audit trail is a documented, one-by-one tracking of transactions, financial data, user activity, and other accounting-related tasks and projects. Audit trails can be used for data protection because you can trace back any possible errors, data security violations, or fraudulent activities committed either by team members, third-party firms, or individuals.
Some examples of audit trails include external audits, internal audits, and IRS audits. External audits are mostly done by CPA firms, while internal audits can be performed by people coming from different departments, given that they’ve undergone proper training. Meanwhile, audits performed by the IRS are mostly for correct taxpaying.
4. Accounting Cybersecurity Software
Your firm needs cybersecurity software that’s reputable, regulation-compliant, and specifically designed for accounting. Using accounting cybersecurity software means forming extra walls against attackers trying to steal your firm’s most sensitive data, like extortion ransomware. Fortify your data and cloud security with programs like Practice Protect to ensure complete and upgraded data protection for your accounting firm.
One cybersecurity strategy that’s more specific towards defending your firm’s system from cyber threats like malware, spam mails, and phishing attacks is getting good antivirus software. Some of the best business antivirus software in the market include Sophos, Bitdefender, and McAfee.
5. Constantly Updated Software
The most up-to-date version of your software allows you to protect your firm’s devices better. If your software is constantly updated, then your accounting firm’s system is benefitting from the latest developments in your antivirus software. Some benefits include stronger firewalls or more modifications against the newest types of viruses or malware.
6. Backed Up Data
Backed up data is useful especially when your devices get infected with viruses and malware. It’s good to make use of cloud storage, especially as a backup for your accounting firm’s most sensitive data. Some benefits of using cloud storage for accounting firms include real-time data syncing, file versioning for audit trail purposes, and eco-friendliness, among others.
7. Locked Devices
Accounting firms must make it a standard procedure in their production rooms to train their accountants, bookkeepers, executive assistants, and the rest of their employees to habitually lock their devices, especially when they’re away from their computers. Accounting firms should avoid too much complacency in the workplace and prioritize data protection at all times.
8. Clean Employee Records
Having trusted employees gives you confidence and a sense of peace as an accounting firm owner that you’re working with reliable, honest, and talented employees to handle your day-to-day operations. Run a thorough background check or verification on your employees to protect your accounting firm from theft, fraud, and most importantly, security breaches.
To ensure that your accounting employees have clean records, here are some common employee background verification types:
Reference Checks
One of the easiest background verification methods, reference checks could be recommendation letters, email exchanges, or short phone calls with your employee’s former employer.
If you’re considering offshoring, one provider you can trust is TOA Global, who does all background checks for you. TOA Global verifies all offshore employees’ records, from accounting certification to education and employment verification.
Education Verification
For accounting firms, it’s crucial to make sure your accountants are certified/licensed to establish public trust. In the US, the American Institute of Certified Public Accountants or AICPA has a database for CPA license verification. As for Canadian CPAs, the rules on certification/licensure would depend on what’s been established in the provinces and territories. Ensure that their submitted identification numbers match the ones from the accounting databases.
Criminal Record Check
Especially since accountants handle sensitive data, your firm should run a thorough check on your employees’ criminal history. If your candidate or employee happens to have any charges or convictions, it’s also good to understand the context and use your best judgment to decide if you will proceed with onboarding them or keeping them as your employee.
Health and Drug Testing
Health testing makes sure that your accounting employees are physically able to work onsite, without any health complications that can hamper workplace productivity, or contagious diseases that will affect other employees in your firm.
Meanwhile, drug testing helps with maintaining workplace safety and minimizes substance abuse-related casualties in the office.
Bolster Cybersecurity with Offshore Accounting
If you’re like most firms, you’re likely facing challenges on multiple fronts as well, not just cybersecurity. Aside from cyber threats, capacity constraints, exacerbated by the worsening talent shortage, are one of the biggest challenges devastating the accounting industry today. This has pushed many firms to offshore certain aspects of their operations to instantly add capacity and circumvent the lack and rising cost of local talent.
However, many firm owners and leaders are still on the fence about offshore accounting due to legitimate cybersecurity concerns. Especially if you’re doing it for the first time, hiring a third-party team to fill your talent gaps can have you worried about client information protection and other confidential records.
Ironically though, offshoring can help enhance your firm’s cybersecurity if—and only if—you partner with a trusted provider with proven cybersecurity track record like TOA Global.
TOA Global uses enterprise-grade cybersecurity software to ensure the smooth and efficient operation of our teams. Our high-end, expansive cybersecurity infrastructure, which includes power and internet redundancy, is exclusively maintained by our in-house IT team, ensuring that no other third-party vendors gain access to our clients’ data.
We also implement strict protocols like our ban on the usage of personal electronic devices on our production floors and offsite access to client data. Our office premises are also monitored by security personnel and equipped with 24/7 CCTV.
Finally, our staff are trained and equipped through our in-house cybersecurity training course, which covers the latest in data, device, access, and end-user security protocols.
Make Accounting Cybersecurity a Year-Round Priority
Cybersecurity Awareness Month serves as a vital reminder for firms worldwide to take their cybersecurity measures seriously. However, we at TOA Global encourage you to make it a year-round priority as we do.
Remember, cybersecurity threats linger around no matter the season and cybercriminals are always ready to exploit any hint of vulnerability. So, make accounting cybersecurity a core part of your firm’s day-to-day.
Do you want to know how our offshoring can make your firm even more secure? Get in touch with us today.