As an accountant, you’re not only in charge of managing this stress and emotion, but you’re responsible for protecting your clients’ data, too. And with cybercrimes like phishing scams, ransomware attacks, and identity theft often peaking during tax season, the pressure can become unbearable.

So, what can you do to make things easier? How can you keep your clients’ information safe without stretching yourself too thin? The good news: we’ve got you covered. Let’s get down to business.

10 Simple Ways To Protect Your Clients’ Data During Tax Season

Develop a Written Information Security Plan (WISP)

As of January 1, 2023, the IRS requires all tax preparation firms to have a WISP in place. This plan should document IT processes and security protocols to protect client data.

Failure to do so can result in hefty penalties, including fines or even the loss of the right to practice. For more information regarding these regulations and a sample WISP template, click here.

Use Strong Encryption and Password Protection

Encrypt files containing sensitive client information and use strong, unique passwords. When sending files, encrypt them and send passwords separately through a different channel.

💡Tip: Look into password managers like LastPass to share your passwords safely. No more misplacing those sticky notes, people!

Implement Multi-Factor Authentication

Security is like an onion—there are layers to this. Requiring two-factor authentication (2FA) for accessing systems and client data gives you and your clients the assurance that your data is protected beyond your password.

This way, even if an employee falls for a phishing scam or uses a weak password, 2FA gives you an additional safeguard against unauthorized access. Think of it like a bouncer at the door of your device’s exclusive club.

Now, you may be familiar with SMS-based codes as a form of 2FA. And while convenient, they’re not the most secure—especially as text messages can be easily intercepted or redirected.

Here are some alternative 2FA methods to consider:

• Authenticator apps: These provide a more secure alternative to SMS-based codes. Authenticator apps generate time-based one-time passwords (TOTP) that change every 30 seconds, making them much harder to intercept or phish compared to SMS codes.
• Push notifications: Many services now offer push notifications to a registered mobile device as a form of 2FA. This method is more secure than SMS and more convenient than manually entering codes.
• Biometrics: Fingerprint or facial recognition can provide a secure and convenient second factor, especially on mobile devices. This method is becoming increasingly common and user-friendly.

Secure Networks and Devices

Use firewalls and anti-malware software. Regularly update your systems. Outdated software leads to vulnerabilities, and hackers love poking their way into those holes.

To protect yourself before problems arise, back up your data daily. In addition, network monitoring tools and intrusion detection/prevention systems (IDS/IPS) can help you monitor traffic for suspicious activity and block potential threats in real-time.

Educate Employees on Security Best Practices

Knowledge is power, and a team that regularly talks about cybersecurity is a team that’s more likely to stay protected from attacks. Make sure to train your staff on data protection, avoiding phishing attacks, not sharing passwords, and not using unsecured networks.

For a place to start, here are 10 tips to effectively train your employees:

For a more detailed breakdown, grab our cybersecurity checklist.

Use Secure Remote Access

Remote work has allowed us to work wherever and whenever—which is a blessing for the flexibility and opportunities it provides. That said, these new opportunities also come with new dangers.

When working remotely, use virtual private networks (VPNs) and secure browsers. This is especially helpful when you have to use public Wi-Fi (coffee shops and airports, anyone?) so you can protect yourself from threats like man-in-the-middle attacks.

Partner with IT Security Experts

Just like managing your money or doing taxes, sometimes it’s better to leave it to the pros. Working with a managed IT service provider can ensure you get the right security measures for your specific needs. It’s also a simpler way to stay updated on the latest threats—without the research that comes with it.

If you want to eliminate the stress of keeping your data secure, one of our IT experts will be happy to help you find your solution.

Back-Up Data Securely

Back. Up. Your. Data. We can’t stress this enough. Your firm is built on the data you’ve collected, so enabling recovery in case of a breach or data loss is crucial.

So, how often should you back up your data? Let’s break it down:

Stay Compliant with Regulations

Keep up-to-date with IRS requirements, data privacy laws like GDPR and CCPA, and industry standards for data protection.

This is another area where partnering with a managed services provider can benefit your firm. With a deep bench of engineers who are certified and continually educate themselves on the latest industry standards and regulations, you can focus on doing what you do best and letting us take care of the rest.

Consider Cybersecurity Insurance

“We didn’t think we’d get hit.” It’s a sad truth we see all too often. Especially when so many businesses assume hackers only target big companies. News flash: 43% of cyber-attacks are aimed at small businesses!

Investing in cyber insurance lets you know that if something were to happen, your firm would have financial protection and expert support. This is not only great for ensuring business continuity for your firm, but it also demonstrates a commitment to your clients that you take your data security seriously—which can help maintain trust and protect your firm’s reputation.

Summary

Don’t make tax season any more taxing than it already is. To protect your client's data (and your reputation), consider these 10 steps:

1. Develop a Written Information Security Plan (WISP)
2. Use Strong Encryption and Password Protection
3. Implement Multi-Factor Authentication
4. Secure Networks and Devices
5. Educate Employees on Security Best Practices
6. Use Secure Remote Access
7. Partner with IT Security Experts
8. Back Up Data Securely
9. Stay Compliant with Regulations
10. Consider Cybersecurity Insurance

Ready to take the next step? Dive into our playbook to help you build the right tech plan for your firm, without draining your budget.