Accounting firms in New Jersey face higher-than-average cybersecurity expectations because they handle tax records, financial statements, and sensitive personal information. While there is no single “CPA cybersecurity law,” most accounting firms are expected to implement 5–7 core security controls to meet regulatory expectations, client requirements, and practical risk management standards.
For accounting firms, IT security is not just about compliance—it’s about protecting client trust, meeting deadlines, and preventing business-ending disruptions, especially during peak tax seasons.
Why Accounting Firms Are High-Value Targets for Cyberattacks
Accounting firms are attractive targets because they store:
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Personally identifiable information (PII)
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Tax returns and supporting documents
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Bank account and financial data
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Client credentials and payroll information
Cybercriminals know that accounting firms operate under strict deadlines, making them more likely to pay ransoms or rush recovery efforts. This is why generic security setups that might work for other small businesses often fall short for CPA firms.
Core IT Security Controls Accounting Firms Should Have in Place
Most accounting firms should have at least 5–7 foundational security controls in place to reduce risk and meet common expectations:
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Multi-Factor Authentication (MFA)
Required for email, cloud applications, and remote access to prevent credential-based attacks. -
Endpoint Detection and Response (EDR)
Advanced protection for desktops, laptops, and servers that goes beyond basic antivirus. -
Email Security and Phishing Protection
Critical for preventing invoice fraud, credential theft, and malicious attachments. -
Secure Backup and Disaster Recovery
Encrypted backups with both onsite and offsite copies, tested regularly. -
Patch and Update Management
Ensuring operating systems and applications are kept current to reduce vulnerabilities. -
Secure Remote Access
Encrypted VPN or secure cloud access for remote workers and on-premises staff. -
Monitoring and Alerting
Continuous monitoring to detect issues before they impact firm operations.
These controls form the baseline of a practical security posture for accounting firms.
The FTC Safeguards Rule and What It Means in Practice
Many accounting firms are subject to the FTC Safeguards Rule, which requires firms to implement “reasonable” security measures to protect client data.
In practical terms, this means:
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Documented security policies
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Risk assessments
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Access controls
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Ongoing monitoring and oversight
While the rule does not prescribe specific technologies, firms are expected to demonstrate that they have taken reasonable steps to protect client information based on their size, data sensitivity, and risk exposure.
Common Security Gaps Seen in Accounting Firms
Through years of working with CPA firms, several patterns show up repeatedly:
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Relying solely on basic antivirus software
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Inconsistent use of MFA across systems
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Backups that exist but are never tested
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No documented incident response plan
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Generic IT providers unfamiliar with accounting workflows
These gaps often remain hidden until a phishing incident, ransomware attack, or client security questionnaire exposes them.
How an Accounting-Focused MSP Reduces Security Risk
An MSP that specializes in accounting firms brings a different approach to security:
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Proactive monitoring instead of reactive fixes
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Security controls designed around tax-season pressure
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Ongoing reviews and adjustments as threats evolve
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Clear documentation to support audits and client inquiries
This approach aligns security with how accounting firms actually operate, rather than applying a one-size-fits-all model.
Real-World Perspective from Inside a Regional Accounting Firm
Total Cover IT Founder David Quick spent 17 years as the internal IT Director for a mid-sized regional accounting firm in New Jersey, supporting the firm as it grew from approximately 50 employees to more than 80.
During that time, David was responsible for:
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Designing, implementing, and maintaining the firm’s entire IT infrastructure
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Supporting specialized practice management and time and billing systems, workflow management tools, and various accounting, audit, and tax-related applications
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Minimizing downtime, especially during peak tax seasons
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Leading a full headquarters office relocation, including the migration and reassembly of core IT infrastructure, with minimal disruption
That experience created a deep, first-hand understanding of how security failures impact accounting firms under real deadline pressure—not in theory, but in daily operations.
How to Think About IT Security as an Accounting Firm Owner
Instead of asking, “Are we compliant?” accounting firm leaders should ask:
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Are we protecting client data at the level clients expect?
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How quickly could we recover from an incident?
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Would a security failure disrupt tax deadlines?
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Does our IT provider truly understand CPA firm workflows?
Security done right supports reliability, trust, and long-term firm stability.
Related Resources for Accounting Firms
This article is part of our Resources for Accounting Firms series, where we answer common questions about IT costs, security, and operational risk for CPA firms.