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How to prepare your accounting firm for the cybersecurity threats of 2025

With data breaches climbing, focusing on your accounting firm’s security is essential. Learn ways to reduce your cybersecurity risk here.

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Last Updated February 10, 2025

Category Cybersecurity

An image of a lock on top of a shield, with computer motherboard wires surrounding it to represent enhanced data security.

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Cybersecurity remains a critical concern for accounting firms in 2025, and for good reason:

  • The cost of recovering from a ransomware attack has risen to $2.73 million. (Sophos)
  • 65% of financial services participants in Sophos’ State of Ransomware report were ransomware victims in 2024. (Sophos)

For accounting firms, the stakes are high—you’re protecting not just your own data but also your clients’ most sensitive financial information, tax records, and personally identifiable information (PII). As cybercriminals increasingly target accounting firms for their valuable data and deploy more sophisticated AI-powered attacks, traditional security approaches no longer suffice.

As we prepare for our upcoming RightNOW conference (May 19-21, 2025), where we’ll explore these topics in depth, I wanted to share some essential insights about why traditional security approaches no longer cut it—and what your firm needs to do instead.

Traditional vs. modern accounting security

First, let’s define traditional and modern accounting security:

  • Traditional accounting security relies on physical measures. Locked filing cabinets and basic access controls, like strong passwords, were enough to keep data secure. “Traditional” accounting wasn’t as internet-connected. Reducing the risk of a cyberattack was simpler.
  • Modern accounting security demands a comprehensive approach. Encryption, continuous staff training, and 24/7/365 threat detection are the new standard, reflective of today’s more complex threats.

Traditional accounting and modern accounting: Security comparison chart

Aspect Traditional Accounting Security Measures Modern Accounting Security Measures
Data Storage Physical storage on local servers or paper records, vulnerable to theft or damage. Cloud-based storage with encryption and regular backups to prevent data loss.
Access Control Restricted to specific physical locations; manual access controls. Multifactor authentication (MFA), biometric authentication, and role-based access controls.
Fraud Prevention Limited internal controls; prone to undetected manipulation of physical records. Automated audit trails, real-time monitoring, and fraud detection mechanisms.
Cybersecurity Measures Basic firewalls and antivirus software, often static defenses. Advanced encryption (AES-256), intrusion detection systems, and dynamic defenses like Zero-Trust Architecture.
Collaboration & Accessibility Limited to on-site personnel; no real-time data sharing. Real-time access from any location with internet connectivity; multi-user collaboration.
Regulatory Compliance Manual processes for ensuring compliance; higher risk of errors. Automated compliance checks and adherence to standards like the Sarbanes-Oxley Act (SOX) and General Data Protection Regulation (GDPR).
Disaster Recovery Vulnerable to permanent data loss due to physical damage or natural disasters. Regular backups and disaster recovery protocols ensure business continuity.

Data security in accounting: My top 3 tips

Threats have become more complicated, but a comprehensive security approach doesn’t necessarily have to be. Data protection comes down to three best practices:

  1. Use cloud technology.
  2. Use your WISP (Written Information Security Plan) as a vulnerability detection tool.
  3. Stay informed.

1. Embrace cloud-first security.

Many firms mistakenly assume their SaaS (Software as a Service) applications are automatically protected. However, browser-based accounting systems need the same level of security as desktop applications.

Common misconceptions include thinking SaaS applications are always backed up or automatically updated to the latest version. However, you are responsible for updating many, if not most, of your SaaS applications. (We discuss why this leaves you vulnerable here.) Additionally, SaaS apps’ data recoverability varies. Meaning, if something were to get accidentally deleted or lost, it may be lost forever.

The cloud fills in desktop and SaaS security gaps by providing:

  • Robust data recovery capabilities to prevent data loss.
  • Continuous security threat scanning
  • Verifiable client data protection.
  • Centralized security management for all desktop and SaaS apps.

Learn more here.

2. Maintain a comprehensive WISP.

Data protection regulations aren’t anything new. And because you handle taxpayer data, you’re required to have a WISP. However, your plan shouldn’t just check a compliance box—it should drive your security strategy.

Image displaying how a WISP helps firms achieve their security goals.

A well-crafted WISP:

  • Accurately reflects your firm’s security measures.
  • Creates a security-conscious culture across your entire staff.
  • Establishes ongoing security evaluation processes.
  • Provides clear guidelines for emerging technologies like AI.
  • Demonstrates your security commitment to clients.

Learn how to create your WISP.

3. Build a culture of security diligence.

Remember: you and your staff represent the first line of defense against cyberthreats.

This means implementing continuous security awareness training—everything from phishing attacks to ransomware identification. A single employee training session isn’t enough—your security education program should be ongoing and evolve as new threats emerge.

To maintain security diligence:

  • Move beyond “good enough” security by actively applying cross-industry best practices to safeguard sensitive financial data.
  • Expand your security scope to include both staff and client protection.
  • Use security expertise to deepen client relationships through advisory services.
  • Stay vigilant about emerging cyberattack vectors and threat surfaces.

An image with the following pull quote from the article: When it comes to accounting firm security, your approach can't be static. And you can't aim for 'good enough.' You have to look across industries and professions and take active measures to apply best practices.

Learn how to protect your firm’s future at RightNOW

Cybersecurity will only become more critical as threats continue to multiply.

Join me at RightNOW this May 19-21 to learn how to stay ahead of these evolving threats. Expect practical cybersecurity strategies that any-sized firm can apply to their network and technology (without sacrificing their time or budget.)

Until then, stay up to date about the latest trends in accounting firm security by subscribing to our blog below.

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