If you’re running a CPA firm, you’ve likely heard about the growing need for tighter data security. With the rise in cyber threats and regulatory changes, CPA firm compliance is no longer optional. One of the biggest compliance requirements now is having a Written Information Security Plan, or WISP. If your firm isn’t already on top of this, now’s the time to act.

What is a WISP?

A WISP is a written document that outlines how your firm protects sensitive data like client financials, tax records, and personal information. It covers both the technical side (like firewalls and backups) and the human side (like staff training and access control).

Think of it as a roadmap for how your firm keeps client information safe. Unlike a generic template you might download online, your WISP needs to be tailored specifically to your firm, your systems, your risks, your staff, and your operations.

Why CPA Firms Must Comply

CPA firm compliance with WISP requirements became mandatory when the Federal Trade Commission (FTC) updated its Safeguards Rule in 2023. This rule used to only apply to banks, but now it covers all non-bank financial institutions, including CPA firms that do taxes, offer financial advice, or prepare financial statements.

It doesn’t matter how big or small your firm is. If you handle personally identifiable information (PII), you’re required to have a WISP in place. That’s the law.

On top of that, the IRS has its own set of rules (Publication 4557) that also require CPA firms to protect taxpayer data. Between the FTC, IRS, state privacy laws, and client expectations, CPA firm compliance has become a must-have, not a nice-to-have.

Common Mistakes CPA Firms Make

A lot of firms think they can just download a fill-in-the-blank WISP template and call it a day. That’s one of the biggest mistakes you can make. Regulators expect your WISP to reflect your actual risks, not some generic checklist.

Here are other common errors:

• No formal risk assessment. Without this, your plan won’t truly address your firm’s real risks.

• Thinking cybersecurity is just an IT thing. A WISP isn’t just about having antivirus software. It also covers employee training, incident response, and vendor management.

• Not assigning responsibility. The FTC wants you to name a “Qualified Individual” to oversee your security program. Many firms skip this entirely.

• Forgetting to update the plan. A WISP isn’t something you do once and forget. It needs to be reviewed and tested at least once a year.

• Not training staff. Sending one security email a year isn’t enough. Real WISP compliance includes monthly or quarterly security training.

In short, cutting corners on your WISP puts your firm at risk, not just legally, but financially and reputationally.

Real Consequences for Non-Compliance

Let’s talk about what happens if your firm doesn’t meet CPA firm compliance requirements. The FTC can fine you up to $46,000 per violation per day, and yes, they can stack violations. The IRS can fine you and even revoke your PTIN credentials if you mishandle taxpayer data. State regulators can come after you too.

Fines aren’t the only risk. If your firm suffers a data breach and you didn’t have a WISP in place, you could lose clients, damage your reputation, and find it difficult (or impossible) to get cyber insurance coverage in the future.

How All in IT Helps CPA Firms Stay Compliant

At All in IT, we specialize in working with CPA firms. In fact, our founder, Matt Daniel, has an accounting background, so we understand both the technical side and the business side of compliance.

Here’s how we help firms achieve true CPA firm compliance:

Here’s how we help firms achieve true CPA firm compliance:

• Custom Risk Assessments: We analyze your specific systems, vendors, and data flows, not just generic risks.

• Technical Safeguards: From endpoint protection and secure backups to multifactor authentication (MFA) and dark web monitoring, we align your tools with WISP requirements.

• Employee Training: We help you set up regular (monthly or quarterly) security awareness training for your team.

• Incident Response Planning: We don’t just create a plan, we walk through it with you so your team knows what to do in a worst-case scenario.

• Annual Reviews and Updates: Your WISP needs to be a living document. We help you keep it up-to-date and audit-ready.

Most importantly, we don’t just hand you a binder and walk away. We become your compliance partner for the long haul.

Read the Case Study with RMH CPAs

Why You Can't Wait Any Longer

If your CPA firm hasn’t started working on WISP compliance, the time to start was yesterday. These rules went into effect in June 2023. Regulators are watching, and enforcement is increasing.

Don’t assume your current IT provider has it covered, so ask the hard questions. Do they understand what a Qualified Individual is? Have they helped you map your data flows? Do you have an actual incident response plan in writing?

CPA firm compliance isn’t about checking boxes. It’s about protecting your clients, your staff, and your reputation. It’s not just about IT, it’s about business responsibility.

Final Thoughts on CPA Firm Compliance

A secure CPA firm is a trusted CPA firm. Clients are starting to ask for proof of your data protection practices. If you don’t have a WISP, or if you’re using a generic one, you’re falling behind.

Start today. Work with a provider that understands both your tech and your business. At All in IT, we’re here to help you build a WISP that works. One that keeps you compliant, confident, and ready for whatever comes next.

Don’t wait until it’s too late. Contact All in IT today to schedule your WISP compliance consultation. We’ll help you protect your firm, meet regulatory requirements, and build trust with your clients, without the guesswork. Let’s make compliance simple, secure, and tailored to your firm.