Cybersecurity
This past week during our Be Insightful webinar "Deep Diving into Tax Practice Tech Stack", a great question was brought forth. How do tax practitioners who don’t specialize in cyber security know how to handle and implement proper cyber security? As tax practices increasingly become targets for cybercriminals, practitioners must embrace cybersecurity as an extension of their professional responsibilities. But where do you start, especially as a small practice?
Securing a tax practice begins with careful evaluation of technology partners. Every tax software provider and cloud storage vendor becomes an extension of your practice's security infrastructure. When selecting these crucial partners, practitioners should focus on vendors who demonstrate robust security protocols and a clear understanding of tax industry compliance requirements. Their security standards directly impact your practice's vulnerability to cyber threats.
Creating a security-minded culture within your tax practice is equally vital. While tax season brings intense pressure to process returns quickly, speed should never compromise security. Staff members must understand their role in protecting client data, particularly when handling tax documents or communicating with clients. This cultural shift means treating every client interaction as an opportunity to demonstrate your commitment to data protection.
Multi-factor authentication for tax software access, encrypted client communications, and secure file-sharing protocols should become standard practice. These measures must be balanced against the need for efficiency during busy tax seasons. The goal is to enhance security without creating bottlenecks in tax preparation workflows.
Tax practices should also consider automating security processes where possible. Automated software updates, regular data backups, and systematic security scans can help maintain protection without requiring constant attention from staff. This approach is particularly valuable during peak tax season when practitioners need to focus on client service.
Risk management in a tax practice requires special attention to IRS security requirements and state-specific regulations. A comprehensive security strategy should address not only prevention but also incident response. Having clear procedures for handling potential data breaches and maintaining business continuity during tax season is crucial for modern practice management.
For smaller practices, implementing these security measures may seem daunting. However, practitioners don't need to tackle cybersecurity alone. Many IT professionals specialize in supporting tax practices and understand their unique needs. Whether through a dedicated security team or a virtual chief information security officer, external expertise can help practices navigate the complex landscape of cybersecurity while maintaining focus on their core mission of tax services.
The investment in cybersecurity, while significant, pales in comparison to the potential costs of a data breach – both financial and reputational. As cyber threats continue to evolve, tax practitioners must view cybersecurity as an ongoing commitment rather than a one-time solution. This investment protects not only sensitive client information but also the long-term sustainability of the practice itself.
In today's digital tax practice, cybersecurity excellence has become inseparable from professional excellence. Tax offices handle an abundance of sensitive information, from Social Security numbers to detailed financial records, making them attractive targets for cyber attacks. The shift toward electronic filing and digital client communications has only heightened these security concerns. For today's tax professional, cybersecurity isn't just an IT issue – it's a fundamental aspect of maintaining client trust and professional integrity.
Here are five steps your practice can implement quickly to help boost your cyber security profile:
Based on the article, here are 5 concrete, immediate steps tax practices can take to enhance their cybersecurity:
1. Implement Multi-Factor Authentication (MFA)
- Deploy MFA for all tax software access
- This is specifically mentioned in the article as a standard practice
- Can be implemented quickly and provides significant security enhancement
2. Review and Upgrade Communication Security
- Set up encrypted client communications
- Establish secure file-sharing protocols
- Ensure all client data transfers are protected
3. Establish Automated Security Processes
- Set up automatic software updates
- Configure regular data backups
- Implement systematic security scans
- This reduces manual oversight needs during busy tax season
4. Evaluate Current Technology Partners
- Review security protocols of existing tax software providers
- Assess cloud storage vendors' security standards
- Verify their compliance with tax industry requirements
5. Create Security Training for Staff
- Develop clear security protocols for handling tax documents
- Train staff in secure client communication practices
- Foster a security-minded culture
- Emphasize that speed should not compromise security during tax season
To download our technology matrix and get a quick reference guide for the most recommended cyber security apps for small, medium and large tax practice firms, visit, Be Insightful.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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