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Technology has significantly improved the accuracy and efficiency of the accounting profession, but firms need to remember to advance their cyber security measures alongside these new technologies to ensure the security of sensitive data.
When it comes to the existing cyber security protocols of small and medium-sized accounting firms, 31% have no offline backups, 27% do not send phishing tests to employees, and nearly 50% would only survive three days from a ransomware attack. [1]
These numbers exemplify how ill-equipped accounting firms are for cyber threats, which is dangerous considering the sensitive financial data accountants are responsible for.
Continue reading to learn more about why your accounting firm needs robust cyber security measures.
Whether for individuals or large corporations, accounting firms have a duty to protect the sensitive data entrusted to them by their clients.
As an accountant, you are given access to your client’s most important financial information to do your job, so it is essential that you are able to guarantee the security of their data to the best of your abilities. The best way to do this is by finding and implementing the best possible cyber security measures available in your industry.
With a data breach costing an average of $9.44 million in the United States, not being equipped with advanced cyber security measures at your accounting firm can be an extremely costly mistake.
A costly data breach or ransomware attack holds the potential to bankrupt your firm or pose other dangerous consequences such as losing existing clients or struggling to onboard new clients. Even if your firm is able to take back or protect its data, the cost of cleaning up a data breach can lead to financial instability too.
Putting proper cyber security measures in place can make a huge impact on avoiding financial losses. For example, companies that regularly tested their incident response plans saved an average of $2.66 million in data breach costs. [2]
In financial services, reputation plays a significant role in the ability of firms to retain and recruit ideal clients.
If your accounting firm suffers a data breach or ransomware attack, your clients will become aware and quickly spread the news like wildfire. You run the risk of losing existing clients and becoming unable to take on new clients due to the lack of trust in your firm’s ability to protect its data.
Recovering from a hit to your reputation can be just as costly as the financial losses you could incur from a cyber attack should you not implement the proper advanced security protocols needed to ward off cyber threats.
As a financial services business, your accounting firm could face legal ramifications should you experience a data breach or other cyber attack that leaks your client’s data.
Whether it’s failing to comply with government regulations or a client threatening to sue, your firm could end up in a costly and time consuming legal battle from failing to properly secure the firm’s sensitive data.
It’s important to work with a managed IT service provider that offers specialized services for accounting firms to implement best practices at your organization like:
By providing specialized IT services for accounting firms and cyber security support, our team can keep your firm protected from online threats with a cyber security service tailored to you.
We’re proud to support businesses in Central Florida and Southeast Michigan by keeping their data safe through:
Ready to achieve more with the right IT partner?
Schedule your free consultation today.
Sources:
1: CyberCatch | 2022 Small and Medium-Sized Businesses Ransomware Survey (SMBRS)
