Cybersecurity Should Be a Priority for Accounting Firms and Here’s Why

Empty tax form on a desk next to a laptop

The accounting industry has seen a 300% increase in cyberattacks in the last couple of years—accounting firms and Certified Public Accountants (CPAs) are increasingly becoming targets of cybercriminals. With so much sensitive financial data hackers attempt to infiltrate on their networks, accounting organizations have become a prime target for hackers looking to make quick cash on the dark web.

With threats hiding in every corner of the internet, it’s important for accounting firms and CPAs to take cybersecurity and accounting IT security seriously. Here’s why.

Accounting Firms Carry a Wealth of Sensitive Financial Information

In this field, accountants and CPAs are automatically responsible for managing important financial information, including:

  • Customer data
  • Bank accounts
  • Tax returns
  • Other confidential documents

Without proper security measures in place, this data can easily fall into the wrong hands. When accounting firm cybersecurity and accounting IT security are implemented, it not only protects client information but can also prevent the firm from being liable for any data breaches that may occur.

Make Meeting Regulatory Requirements Easy with Accounting Firm Cybersecurity

Certain regulatory requirements need to be met in this industry to remain compliant with laws such as the Sarbanes-Oxley (SOX) Act. The SOX Act is a federal law passed in 2002 that enhances corporate responsibility, financial disclosure, and public trust in response to accounting scandals circulating at that time. Not meeting these regulations can result in hefty fines and potential legal action.

However, meeting compliance regulations can be easier with accounting firm cybersecurity protocols in place. Accounting IT security, can give your firm the security boost it needs to protect customer data and trust.

Gain the Financial Security for Your Financial Business

In 2022, the average cost of a ransomware attack was $4.54 million. Just a cyberattack alone can cost firms millions in legal fees and restitution. On top of that, cleaning up after a breach and restoring systems can take days or weeks if done incorrectly.

And if that’s not enough, the cost of repairing any damage and restoring systems can add up quickly. Accounting IT security can be the difference between a few hundred dollars and thousands of dollars in repairs—pick your poison.

Detection of Data Breaches—Don’t Waste Another Second

Unfortunately, many accounting firms don’t discover a breach until after it has already happened. This means that hackers can have free rein on your networks for days, weeks, or even months before you know about it.

In fact, according to the 2021 Data Risk Report by Varonis, “Financial services take an average of 233 days to detect and contain a data breach.” Playing the waiting game can be extremely costly for firms; which is why accounting firm cybersecurity is essential in preventing these types of long-term breaches from happening in the first place, as well as detecting and responding to them quickly if they do occur.

Protect Your Accounting Firm with Praxis’ Help

At Praxis, we offer a range of services designed to help accounting firms and CPAs protect their data from cyber threats. Our accounting firm cybersecurity and accounting IT security solutions are tailored to meet your specific needs and requirements for enhanced security that keeps you secure and ensures you meet all compliance guidelines.

Schedule to meet with us today for more information about how we can help you protect your firm from cyber threats with accounting firm cybersecurity.