Cybersecurity Concerns: Protecting Sensitive Data in Accounting Practices

Proper data security continues to be a key concern in the accountancy industry due to the growing threat of cybercrime. If accountancy firms cannot keep their data secure from hackers and other breaches, they risk a considerable loss of business and reputation.

Read on for advice and guidance on protecting your accountancy firm’s sensitive data to ensure you stay ahead of cybercriminals and avoid a costly data security breach.

Adequate Hardware

One of the key questions for accountancy practices is whether or not they should invest in data storage hardware on site or look to third parties to secure their data. The answer to this question depends on the size and requirements of the business.

Handling data hardware on site is a very secure way of data storage. If more storage is required, this can be simply added, as long as the business has enough storage space to do so. However, on site hardware is often costly and requires trained and trusted IT staff to operate and maintain it. It also needs to be secure from theft, so investment in premise security will be required. There is also a risk of fire and flood damage, so hardware insurance may be necessary.

Smaller businesses may choose to outsource their data storage needs to third parties, who may use the cloud. This means experts are handling your data, and your business does not need to invest in hardware or staff. However, any issues are down to the third party to resolve, so it is important to choose a reliable business and ensure a healthy relationship is maintained. Data on the cloud also requires a constant internet connection, so any network issues may interrupt your business operations.

If you are concerned about a lack of IT staff within your company to ensure your company is safe online, outsourced IT support for accountants can be instrumental in ensuring your sensitive data remains secure online.

Adequate Staff Training

Insufficient staff training is one of the main sources of data breaches. Poorly trained staff are unable to spot common scams, such as phishing, malware, or ransomware. This could cost the business an enormous amount of money to correct and result in a loss of business and reputation.

Ensure staff are competent in cybersecurity by requiring all new hires to complete a cybersecurity course to become familiar with common cyber threats to protect the business. Also ensure experienced staff are regularly tested on their ability to spot cyber threats. This could include ad hoc refresher courses to be completed, or your IT department could send out internal tests. This would look like the distribution of fake emails posing as a cyber threat; if employees fail to report this, they can be enlisted on a refresher cybersecurity training course. Having properly trained staff drastically minimises the risk of cyber security breaches.

Adequate Safety Protocols

Your accountancy practice should have sufficient security measures in place to protect the business from external data threats. Allowing unauthorised personnel into your place of business could give them access to your systems, and your sensitive data may be at risk. Of course, basic security measures should always be maintained, such as secure passwords for all employees to access company systems. Passwords should be regularly changed to ensure maximum security.

Other appropriate measures include biometric scanners for all IT staff, to ensure they are the only employees who can access data servers. This is an excellent way to protect sensitive client information. All employees should also hold ID cards to show they are an employee of the business. These should always be on show, which helps the business identify any intruders and protect the businesses assets.

With the increased popularity of hybrid working, it is important to note that businesses should have adequate data protections for employees to work remotely. This would include a secure centralised server to ensure company information can only be accessed by remoting to a secure network.