When it comes to financial data, CPA firms sit at the center of trust. That trust is increasingly under attack from cybercriminals. Cybersecurity for CPAs isn’t just an IT issue anymore, it's a business-critical priority.

Think about it: CPA firms manage highly sensitive information, from tax returns and payroll records to Social Security numbers and banking details. This data makes them a prime target. Add in remote work, cloud tools, and jam-packed schedules during tax season, and you’ve got the perfect storm for a security breach.

Why CPA Firms Are Targets

CPA firms are attractive to hackers for one simple reason: they store treasure troves of financial and personal data. Hackers know that just one successful phishing email can open the door to everything.

CPAs are extremely smart, but they’re also extremely busy. Their focus is on accounting, compliance, and client work, cybersecurity training often takes a back seat.

Another growing risk is hybrid and remote work. While flexible work setups help firms grow, they also open the door to more security holes, especially if firms haven’t adapted their systems with a security-first mindset.

What Makes Compliance So Tough?

One of the biggest challenges CPA firms face is understanding and implementing technical compliance requirements. A key regulation is the FTC’s Safeguards Rule, which requires firms to maintain a written information security program, often called a WISP. Sounds easy enough, but many firms don’t know where to start.

We have had several CPA clients ask about WISP plans. We provide the tools and guidance, but many still don’t follow through. It's like knowing you need a will but never writing one, except this is mandatory and not optional. Then there’s SOC 2 compliance, which isn't required for every CPA firm but is increasingly expected by enterprise clients. If your firm provides outsourced accounting, payroll, or advisory services, chances are high that someone will ask you to show proof of compliance.

The Cost of Cutting Corners

Many CPA firms fall into the trap of “it won’t happen to us,” but when it does, the fallout can be devastating.

In one real-life example, a small Midwestern CPA firm was hit with a phishing attack in 2023. Hackers gained access to their email system, tax returns, and Social Security numbers. The consequences?

• $45,000 in legal and notification costs

• 22 lost clients in just two months

• An IRS audit of their e-filing system

• Mandatory security training for all partners

Cybersecurity for CPAs is not just about avoiding fines, it’s about protecting your business, your clients, and your reputation.

Common Mistakes CPA Firms Make

When it comes to data security, CPA firms are often their own worst enemy. Here are some common mistakes we see all the time:

1. Sending sensitive documents via unencrypted email

Email is convenient, but it’s also one of the easiest ways for data to be stolen. Tax returns, bank info, and payroll reports should always be shared through secure client portals, not email.

2. Weak passwords or no MFA

We’ve seen password files named “passwords.xlsx” sitting in shared folders. That’s a hacker’s dream. Use strong, unique passwords and enable multi-factor authentication (MFA) everywhere, especially for email, client portals, and accounting systems.

3. Skipping security training

Many CPA firms assume their staff knows better, but human error is still the #1 cause of breaches. Regular training, including phishing simulations, is essential, especially during tax season when stress and volume are high.

4. Failing to limit access

Not everyone needs access to everything. Use role-based access controls to limit exposure and prevent accidental leaks.

5. No written security plan

If your firm doesn’t have a WISP, you’re likely out of compliance. It’s also risky, especially when trying to get or renew cyber insurance coverage.

Best Practices with Cybersecurity for CPAs

What can CPA firms do to protect themselves and their clients? Here are the top security practices All in IT recommends:

• Enforce MFA on all platforms

• Use encrypted client portals for sharing documents

• Train your team, especially during peak season

• Archive old client data that’s no longer active

• Apply least-privilege access so only the right people can view sensitive data

• Maintain a written security plan (WISP) and update it regularly

All in IT also performs comprehensive cybersecurity assessments that help firms see where they’re vulnerable and what steps they need to take to comply with FTC rules or SOC 2.

The Hidden Costs of a Breach

Beyond fines (which can be up to $50,120 per violation under FTC rules), the real damage comes from lost trust. CPA firms rely on reputation and referrals. A breach can take years to recover from, if you even make it.

It’s not just clients who might leave. Talented employees may start looking elsewhere if they feel their personal data or work environment isn’t protected.

Why All in IT's Security-First Approach Matters

Unlike traditional IT providers who focus on fixing problems after they happen, All in IT takes a proactive, security-first approach. That means putting cybersecurity, compliance, and business continuity at the core of everything we do.

Here’s a quick look at how we’re different:

AreaTraditional IT SupportAll in ITPhilosophyReactive (fix it later)Proactive (prevent issues)FocusUptime and support ticketsSecurity, compliance, and trustCybersecurityBasic antivirusLayered stack: EDR, MFA, Zero trustRegulatory ComplianceLimited knowledge Experts in FTC, SOC 2, IRS Pub. 4557DocumentationRarely providedWISP, risk assessments, access logsTrainingGeneric (if any)CPA-specific, trackable, audit-readyMonitoringBasic uptime24/7 threat detection and patchingClient DataShared folders, emailEncrypted portals, role-based accessIncident Response"Call us if it breaks"Prebuilt plans, client notifications, forensic support

Why It Matters Now More Than Ever

As regulations tighten and cyber threats grow, firms that don't take cybersecurity seriously are putting everything at risk. The busy season is when firms are most vulnerable, and when attackers know you’re the most distracted.

That’s why now is the time to review your security posture and ensure you're not just meeting the minimum but going above and beyond.

At All in IT, we don’t just understand technology, we understand CPA workflows, busy seasons, and compliance requirements. Our services are built with your industry in mind.

Want proof? Just ask RMH CPAs. With our help, they’ve strengthened their cybersecurity posture and created a compliance roadmap that gives both them, and their clients, greater peace of mind.

Read the RMH story

Need Help Securing Your CPA Firm?

Contact us today to talk about how All in IT can protect your business, your clients, and your reputation.