Cybersecurity in Accounting: 4 Industry Experts Share Their Insights

“It takes 20 years to build a reputation and a few minutes of cyber-incident to ruin it.” ― Stephane Nappo

As technology is rapidly evolving, so is the dependency on the accounting industry, which is facing unprecedented cybersecurity challenges. As financial data becomes increasingly digitized and cloud-based platforms rise in popularity, accounting firms are prime targets for cyberattacks.

Protecting sensitive client information from data breaches, phishing, and ransomware has never been more critical. According to the latest stats published by Accenture, around 35% of organizations embed security controls in all transformation initiatives from the beginning, while 18% deployed security after the event, indicating varying approaches to cybersecurity in digital transformation.

At the same time, compliance with evolving regulatory standards adds further complexity to managing cybersecurity risks. Accounting firms and professionals need to implement strong cybersecurity procedures to keep ahead of new threats since their clients’ trust and financial integrity are at stake.

In this article, industry experts weigh in on the top cybersecurity challenges faced by the accounting sector and their solutions. Let’s explore the key cybersecurity trends shaping the future of data protection in the industry.

Randy Johnston

Randy is a nationally recognized educator, consultant, and writer with over 30 years of experience in strategic technology planning, accounting software selection, paperless systems, systems and network integration, business continuity and disaster recovery planning, business development and management, process engineering, and outsourced managed services. Connect with Randy on LinkedIn.

Accounting Today listed Randy as one of its Top 100 Most Influential People from 2004–2023. In 2011, CPA Practice Advisor acknowledged Randy in the Accounting Hall of Fame and as a Top 25 Thought Leader from 2011–2024. For the past 29 years, Randy has been a featured speaker at the AICPA Technology Conference. Who’s Who in Business & Industry has acknowledged Randy as a leading business and computing professional.

Let’s read Randy’s view on the cybersecurity and AI threats –

“Artificial Intelligence has made cybersecurity attacks more targeted and intense than ever before. Safeguarding your company will necessitate multiple layers of security, resembling an onion.”

If a cybercriminal breaches one level of defense, another will still safeguard your vital accounting systems. Leveraging AI, malicious actors can-

• Obtain help crafting unique attacks
• Gain insights into new incursion techniques
• Create fake audio and video to deceive unsuspecting team members
• Collaborate with others to conceal their identities

Protecting your company will require proactive measures from professionals who monitor your systems around the clock.”

Mike Milan (Cash Flow Mike)

After building a high-growth hotel staffing company, Mike encountered a severe cash flow problem. Waiting for client payments led him to max out credit cards and take out a home equity loan just to make payroll. This stress drove him to learn everything about small business cash flow, transforming him into an expert in business finance, earning the nickname “Cash Flow Mike.” You can connect with him on LinkedIn. 

Here is Mike’s advice on cybersecurity.

“Cybersecurity in accounting is evolving fast. Here’s what could be on the horizon:

• AI-driven threat detection – Expect to see more automated systems catching issues before they become problems.
• Blockchain technology – This could provide secure, transparent transactions that reduce fraud risks.
• Zero-trust security models – More firms will likely adopt this approach, limiting access to only what’s absolutely necessary.
• Cloud security advancements – As cloud usage grows, so will the tools to protect sensitive financial data.

Staying informed and ahead of these trends will be key to keeping client data secure.”

Seth Fineberg

Seth Fineberg is an Accounting Industry Consultant, Editor, Content Strategist, and Speaker. He believes that learning and sharing knowledge that can improve someone’s life is the greatest achievement one can have. He spent years curating information on business operations, business technology, and trends. Fineberg closely observed the transformation in the accounting profession over the past decade and also shared insights to help firms grow and better serve their clients. Connect him over LinkedIn.  

Discover Seth’s thoughts on cybersecurity and its need in accounting firms-

“It seems unconscionable these days that accounting firms, which oversee some of the most sensitive financial data, wouldn’t make cybersecurity the highest priority. Yet one-quarter of the way through the 21st century, many firms rely on ‘antiquated’ and, ultimately, irresponsible methods of data transfer and management.

There are also non-compliance factors to consider by not even having a written information security program (WISP) at your firm. It’s a lot to do on your own, especially as a small firm, which is why it behooves you to consider having a partner whose only priority is the protection of your firm’s data.”

Dr. Sangeeta Chhabra

Dr. Sangeeta Chhabra is the Co-Founder & Executive Director of Ace Cloud Hosting. She has positioned the company as a global provider of IT and managed cloud services, with its QuickBooks hosting tailored for the accounting sector and its Managed Security Services for SMBs and enterprises. With over three decades of distinguished experience that bridges academic excellence and innovative entrepreneurship, she plays a key role in managing the day-to-day operations of Ace Cloud Hosting. Connect with her on LinkedIn.  

Let’s see what Dr. Sangeeta says about the need of cybersecurity for accounting firms –

“In today’s phygitally connected world, where we share connected experiences, guarding the cyber frontier has become more critical than ever. There is a pressing need for comprehensive and advanced cyber-defense solutions based on a zero-trust architecture that proactively addresses cyber threats by integrating data aggregation, analytics, visibility, orchestration, artificial intelligence, and machine learning capabilities into a unified system. This is particularly vital for accounting firms managing sensitive financial data, given their high vulnerability to cyberattacks.

A lack of cybersecurity knowledge and awareness of technological advancements can unintentionally open the door to cyberattacks. Staying informed and educated helps safeguard against potential threats and vulnerabilities.

According to a report by Aberdeen Group, cybersecurity awareness training led to a 70% reduction in security-related risks in 2023. Additionally, outsourcing IT infrastructure and security management to experts allows firms to focus on delivering value to their clients while ensuring their data remains protected and compliant.”

Conclusion

The importance of robust cybersecurity in today’s world cannot be overlooked. With financial data being a prime target for cybercriminals, firms must remain vigilant and proactive in their defense strategies.

Insights from industry experts Randy Johnston, Mike Milan, Seth Fineberg, and Dr. Sangeeta Chhabra reveal that the future of cybersecurity in accounting will be driven by cutting-edge technologies like AI and zero-trust models.

The real challenge lies in maintaining a balance between these innovations and meeting regulatory standards.

What are your views? How are you managing security for your accounting firm and what challenges are you facing? Please share in the comments.