How to Secure Accounting Workflows in a Remote World

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Remote work has become a permanent fixture in the accounting profession. A FlexJobs survey found that 96% of employees want some kind of hybrid (38%) or remote (58%) work option.

According to Accounting Today, nearly 20% of full-time employees work from home, and another 24% work in a hybrid model.

That’s a meaningful segment of the profession operating outside the traditional office, and with it comes a security challenge that most accounting firms haven’t fully resolved. Whether your team accesses client files from a home office, a co-working space, or a satellite location, the data they handle is both highly valuable and highly vulnerable.

Securing accounting workflows is no longer optional. It’s a federal requirement, a professional obligation, and a basic duty of care to every client who trusts your firm with their financial information. This post covers what the risks look like, what the law requires, and what it takes to build a genuinely secure accounting environment for a distributed team.

Why Remote Accounting Workflows Create Security Risks

The shift toward distributed work environments created a significant security gap in the accounting profession. Firms needed to retrofit nearly every workflow in a compressed timeframe: entering client documents, collaborating through video, adopting digital payment systems. The focus was on getting work done. In many cases, security due diligence didn’t receive the same attention.

Now, many firms are too comfortable in the workflows they’ve built. If the process is working, the reasoning goes, why change it? There are two compelling answers to that question.

If the process is working, why change it?

1. Cybercriminals target accounting firms of every size

Cybercriminals noticed the rapid evolution of remote accounting workflows and the gaps those transitions created. According to Forbes, ransomware and phishing schemes have soared, with cybercriminals specifically targeting small and medium-sized businesses, with particular focus on medical, legal, government, and financial organizations for their concentration of personally identifiable information (PII).

There’s a common misconception that smaller accounting practices aren’t worth targeting. That’s simply not accurate. Criminal organizations use automated tools to identify and exploit vulnerabilities at any-sized firm. Smaller practices, which typically lack enterprise-level safeguards, are often easier targets, not less desirable ones.

Cybercriminals check everything: firm servers, Wi-Fi routers, mobile devices, individual applications, operating systems, web browsers, and even the security applications firms rely on to protect themselves. Any piece of hardware or software not actively monitored and updated is a potential entry point. Every size accounting firm, from sole practitioner to the Big Four, is a target.

2. Accounting firms hold vast amounts of personally identifiable information

The reason accounting firms are so attractive to cybercriminals is the volume and sensitivity of the data they hold. Social Security numbers, tax identification numbers, financial records, payroll data, and banking information are all PII that can be monetized through ransomware attacks, extortion schemes, or sale on the dark web.

For accounting firms, a breach isn’t just a technology problem. It’s a client trust crisis, a regulatory violation, and a business continuity threat all at once. And the cost of recovering from a breach consistently exceeds the cost of preventing one.

How Can Accountants Ensure Secure Handling of Client Data When Working Remotely?

Securing client data in a remote environment requires more than good intentions. It requires specific, documented controls. The IRS has been explicit: federal regulations require professional tax preparers to create and implement security plans that protect client data.

Know the IRS Security Six requirements

The IRS Security Six provides the foundation for any accounting firm’s security posture. These six safeguards are the minimum standard for protecting taxpayer data and professional systems.

• Antivirus software: All firm devices should run current antivirus software that actively scans for and blocks malware.
• Firewalls: Firewalls create a barrier between your internal systems and external threats, monitoring incoming and outgoing network traffic.
• Multifactor authentication: Multifactor authentication (MFA) requires users to verify their identity with more than a password, significantly reducing the risk of unauthorized access from compromised credentials.
• Backup solutions: Regular, verified backups protect firm and client data against ransomware attacks and accidental loss.
• Encryption: Encrypting data, both in transit and at rest, ensures that even if data is intercepted, it can’t be read without the correct decryption key.
• Virtual private network (VPN): A VPN creates a secure, encrypted connection for remote access, protecting data transmitted over public or home networks.

These six controls are documented in IRS Publication 4557, Safeguarding Taxpayer Data, and IRS Publication 5293, Data Theft Resource Guide for Tax Professionals, both required reading for any tax professional handling client data.

Create and maintain a Written Information Security Plan (WISP)

Beyond the Security Six, accounting firms are legally required to maintain a Written Information Security Plan. A WISP documents your firm’s approach to identifying, managing, and protecting sensitive data, including who has access, how that access is controlled, what happens in the event of a breach, and how employees are trained.

The Federal Trade Commission requires professional tax preparers to have a WISP in place. The IRS has reinforced this requirement consistently. A WISP isn’t a one-time document; it needs to be reviewed and updated as your firm’s technology, staff, and workflows change.

Require security awareness and phishing training

The IRS also requires accounting professionals to complete security and phishing training. Human error remains the most common cause of security incidents in professional services, which makes ongoing employee education one of the most important controls a firm can implement.

Security Awareness Training should be ongoing, not a single annual event. Cybercriminals continuously refine their techniques, and staff need to recognize current tactics, not just the methods covered in last year’s training session.

Update your remote access policies regularly

Any firm that has added new technology, applications, or remote workflows since its last policy review is operating with an outdated security policy. Remote work policies should specify which devices are approved for work use, how remote connections must be established, what data can and cannot be accessed from outside the office, and what employees should do if a device is lost or compromised.

Reviewing and updating these policies at least annually, and whenever a significant technology or staffing change occurs, is a baseline expectation of sound information security governance.

What Software Solutions Combine Accounting Workflow Automation with Strong Security Features for Sensitive Data?

Accounting firms increasingly need software that handles two jobs at once: streamlining the work and protecting the data that flows through it. Not every accounting application is designed with both objectives in mind. When evaluating secure accounting solutions, look for platforms that integrate workflow automation with meaningful data protection controls, not just the appearance of them.

Secure cloud tax software for accounting firms with role-based access needs and remote teams

Cloud-based tax and accounting platforms can deliver strong security when they’re built and configured correctly. For firms with remote teams, role-based access control is a critical feature. Role-based access means each user can only see and interact with the data their role requires. A staff accountant preparing a return doesn’t need access to every client file in the system, and restricting that access limits the potential damage from a compromised credential.

When evaluating secure cloud tax software, look for platforms that include:

• Role-based access controls with granular permission settings.
• Audit trails that log who accessed what data and when.
• Encryption of data in transit and at rest.
• Multifactor authentication support across all users.
• Automatic session timeouts for inactive users.
• Documented compliance with relevant data privacy and security standards.

Encrypted accounting services: what strong data protection looks like

Encryption is a non-negotiable component of any secure accounting software. It protects client information during every stage of its life: when it’s being transmitted between systems, when it’s sitting in a database, and when it’s being backed up. Look for platforms that use AES-256 encryption, the standard used by financial institutions and government agencies, and that apply encryption by default, not as an optional add-on.

Encrypted accounting services should also maintain clear documentation of their encryption practices, so your firm can reference them in your WISP and demonstrate compliance during a regulatory review.

Secure accounting applications: key features to prioritize

Beyond encryption and access control, secure accounting applications should demonstrate:

• Regular, documented security patches and software updates.
• A documented incident response plan and a history of transparent breach disclosures.
• Third-party security audits or certifications, such as SOC 2 compliance.
• Data residency transparency, meaning you know where your client data is stored and under what jurisdiction.
• Clear data retention and deletion policies that align with your firm’s obligations.

Which CPA Enablement Tools Have Strong Security?

CPA enablement tools span a broad range of functions: document management, client portals, time tracking, billing, workflow management, and communication platforms. Not all of them are built with accounting-specific security requirements in mind.

When evaluating whether a CPA enablement tool has the security your firm needs, ask the following questions before committing to any platform:

• Does the platform support multifactor authentication for all user accounts?
• Does it offer role-based access controls with granular permission settings?
• Is all data encrypted in transit and at rest?
• Does the vendor undergo regular third-party security audits?
• Does the tool align with IRS Publication 4557 and Publication 5709 recommendations?
• Does the vendor have a documented incident response plan and a track record of transparent breach disclosures?

Tools that can’t answer these questions clearly don’t belong in a secure accounting firm’s technology stack. The best secure workflow platform for accounting firms will demonstrate its security posture through certifications, documentation, and direct answers, not marketing language. If a vendor’s security section consists of vague assurances and no documentation, treat that as a meaningful signal.

Accounting Firm Access Control: Benefits and Reasons It Matters

Access control is one of the most effective security controls available to accounting firms, and one of the most underused. At its core, access control ensures that the right people have access to the right data, and only that data.

Access control benefits for accounting firms

Implementing strong access control across your firm’s systems delivers several concrete security and compliance benefits:

• Reduced breach impact: When an employee’s credentials are compromised, limiting that account’s access limits what a cybercriminal can reach and do with it.
• Audit trail clarity: Access logs make it possible to identify who accessed specific files, when, and from where, essential for both internal oversight and breach investigations.
• Regulatory compliance support: Access controls are a component of WISP requirements and help firms demonstrate compliance with IRS and FTC data protection rules.
• Client trust: Clients expect their sensitive financial data to be available only to the professionals actively working on their accounts, not accessible to every staff member in the firm.
• Employee accountability: Clear access boundaries reinforce the expectation that client data is handled responsibly and purposefully, and create a record when it isn’t.

Key reasons accounting firms need access control for remote teams

Remote teams expand the attack surface of any accounting firm. When employees access firm systems from outside the office network, the risk of credential theft, device compromise, and unauthorized access increases. Access control directly mitigates these risks by:

• Ensuring remote workers can only reach the systems and files their role requires.
• Triggering alerts when access patterns deviate from what’s normal for a given user or account.
• Making it straightforward to revoke access when an employee leaves the firm or changes roles.
• Preventing unauthorized access to payroll data, tax returns, and banking information from unsecured devices or networks.

For accounting firms with offshore or contract staff, access control takes on additional importance. Any user connecting to firm systems from outside your organization’s standard network should operate under strictly scoped permissions, with access reviewed regularly and revoked immediately upon contract end.

How to Secure Payment Workflows for Accounting Firms

Payment workflows are a high-value target for cybercriminals. Business email compromise (BEC) attacks specifically exploit payment processes: an attacker impersonates a trusted party and requests a fraudulent wire transfer or ACH payment. Accounting firms, which frequently handle payments on behalf of clients, are an attractive target for this type of attack.

Securing payment workflows requires a combination of process controls and technology safeguards:

• Verify payment requests through a second channel: Never process a payment change request received by email without confirming it by phone using a number you already have on file, not a number included in the suspicious message.
• Apply access controls to payment systems: Limit the number of employees who can initiate or approve payments, and require dual authorization for payments above a defined threshold.
• Use encrypted, authenticated payment platforms: Any platform used to receive or process payments should apply strong encryption and require multifactor authentication for all users.
• Train staff to recognize BEC tactics: Security Awareness Training should specifically address payment fraud scenarios, including the impersonation of clients, vendors, partners, and firm leadership.
• Monitor for anomalies: Establish a baseline of normal payment behavior and investigate deviations: unusual amounts, unfamiliar recipients, or off-hours transactions all warrant review before processing.

The Case for a Managed Cloud Solution for Accounting Firms

Most of the security requirements outlined in this post are outside the day-to-day expertise of accounting professionals. Their focus should be, and needs to be, on serving clients. And even for firms with internal IT staff, keeping pace with evolving cyberthreats while managing routine support demands leaves security perpetually underfunded and under-resourced.

IRS Publications 4557 and 5293 together contain more than 100 data protection recommendations. Implementing them correctly, keeping pace as requirements evolve, and maintaining documentation to demonstrate compliance is genuinely a full-time job. For most accounting practices, the cost of enterprise-class security resources is prohibitive on an internal basis.

That’s where a managed cloud provider built specifically for accounting firms makes a meaningful difference. A qualified provider:

• Layers accounting-specific security controls into hosted workflows from the start.
• Keeps applications patched and current, removing one of the most common attack vectors.
• Manages backup and disaster recovery so firm data is protected and recoverable.
• Provides enterprise-level security monitoring and threat detection at a cost accessible to firms of any size.
• Supports WISP compliance by maintaining and documenting the security controls that underpin your firm’s information security plan.

When evaluating a managed cloud provider for accounting, look beyond the feature list. Ask about their accounting-specific security expertise, their track record with practices similar to yours in size and scope, and their ability to demonstrate compliance with IRS, FTC, and industry security standards.

Secure Accounting FAQs

What is the IRS Security Six for accounting firms?

The IRS Security Six is the baseline set of security safeguards required for tax professionals: antivirus software, firewalls, multifactor authentication, backup solutions, data encryption, and a virtual private network (VPN). These controls are documented in IRS Publication 4557 and represent the minimum standard for protecting taxpayer data in any accounting environment.

Is a WISP required for accounting firms?

Yes. The Federal Trade Commission requires professional tax preparers to maintain a Written Information Security Plan (WISP). The IRS has reinforced this requirement and provides guidance on WISP development through IRS Publication 4557. A WISP documents how your firm identifies risks, protects sensitive data, and responds to security incidents.

What do encrypted accounting services protect against?

Encrypted accounting services protect client data from unauthorized access at every stage of its lifecycle: while it’s transmitted between systems, while it’s stored in a database, and while it’s being backed up. Encryption ensures that even if a cybercriminal intercepts your data, they can’t read it without the decryption key. For accounting firms, encryption is a component of IRS Publication 4557 requirements and a baseline expectation for any secure accounting application.

What is the best secure workflow platform for accounting firms?

The best secure workflow platform for an accounting firm combines role-based access controls, encryption of data in transit and at rest, multifactor authentication, audit logging, and regular security patching, all within a cloud environment built to support compliance with IRS, FTC, and industry security standards. Platforms designed specifically for accounting firms are better positioned to address the profession’s unique compliance requirements than general-purpose business software.

How does accounting firm access control support compliance?

Access control is a documented component of WISP frameworks and directly supports compliance with IRS Publication 4557 recommendations. By limiting which staff members can access specific data, firms reduce the risk of unauthorized disclosure, create an auditable record of data access, and demonstrate to regulators that they’ve implemented appropriate controls to protect taxpayer information.

Can a small accounting firm afford enterprise-level security?

Yes: through a managed cloud provider built for accounting. Most small and mid-sized accounting firms can’t sustain the internal cost of enterprise-class security resources on their own. A managed cloud provider pools those resources across many firms, making enterprise-grade security monitoring, patching, backup, and compliance support accessible at a cost that works for practices of any size.

Securing Your Firm Starts with Intentional Choices

Secure accounting workflows don’t happen by accident. They require intentional choices about the tools your firm uses, the policies your team follows, and the partners you rely on to maintain the infrastructure that makes remote work possible.

The IRS requirements aren’t a ceiling; they’re a floor. Meeting the Security Six, maintaining a WISP, and completing regular Security Awareness Training are starting points, not finish lines. Cybercriminals continuously refine their methods, and accounting firms need to continuously improve their defenses in response.

Working with a managed cloud provider that understands the accounting profession’s specific compliance requirements takes much of that burden off your team, putting it in the hands of people whose full-time job is keeping your systems, your data, and your clients protected.

To learn more about what a genuinely secure accounting environment looks like in practice, download The Ultimate Cybersecurity Guide for the Modern Accountant.