What IT and security do accounting firms need for compliance? Accounting and CPA firms must follow the FTC Safeguards Rule under GLBA, which requires a written information security plan, access controls, encryption, and monitoring. Many clients also expect SOC 2. The right IT partner builds these controls, keeps tax software running through busy season, and protects sensitive financial data.
Why is IT so compliance-heavy for accounting firms?
Accounting and CPA firms hold some of the most sensitive data there is: Social Security numbers, bank details, and full financial pictures for every client. That makes firms a top target for attackers and puts them under real rules. Under the Gramm-Leach-Bliley Act (GLBA) and the FTC Safeguards Rule, tax and accounting firms count as financial institutions and must protect client data in specific ways. This is not optional, and the FTC has been enforcing it.
What does the FTC Safeguards Rule require?
The Safeguards Rule asks accounting firms to build and follow a written information security program. In plain terms, you need:
- A written information security plan with someone responsible for it.
- Access controls, so staff only reach the data they need.
- Encryption of client data, at rest and in transit.
- Multi-factor authentication for anyone accessing client information.
- Monitoring and logging to catch and investigate problems.
- A written incident response plan for breaches.
- Vendor oversight, so your service providers protect data too.
A firm that cannot show these controls is out of compliance, and that is a risk to the practice and its clients.
What about SOC 2?
Many business clients now ask their accounting firm for a SOC 2 report, an independent check that the firm handles data securely. You do not need SOC 2 to comply with the law, but having strong, documented controls makes a SOC 2 far easier and reassures larger clients. The same controls that meet the Safeguards Rule are the foundation for SOC 2.
Why does busy season change the IT picture?
For an accounting firm, downtime in March or April is not an inconvenience, it is lost revenue and missed deadlines. Tax software like CCH Axcess, UltraTax, or Lacerte has to stay up, fast, and secure while the whole team works long hours. That means reliable systems, tested backups, and support that answers when you need it, plus security that does not get switched off under pressure.
Where are the cyber insurance gaps?
Accounting firms often discover at renewal that their policy requires MFA, EDR, and tested backups that they do not have. That can mean a higher premium or no coverage. Building the controls the Safeguards Rule already asks for also closes the cyber insurance gap, so you stay covered.
How Prescient Solutions supports accounting firms
Prescient Solutions has served professional services firms, including accounting and CPA firms, across the Chicago and Milwaukee areas since 1996. We work as your outsourced or co-managed IT department and build the controls compliance requires: a written security plan, access controls, encryption, MFA, monitoring, and an incident response plan. We keep your tax software running through busy season and protect the client financial data your firm depends on.
Remote and managed services are priced per user and per device, so cost scales with your firm. On-site support is priced to fit the engagement. If GLBA compliance or a client’s SOC 2 request is on your plate, we are happy to review where you stand.
Frequently Asked Questions
Q: What IT compliance rules apply to accounting firms?
A: The FTC Safeguards Rule under GLBA. It treats tax and accounting firms as financial institutions and requires a written information security plan, access controls, encryption, MFA, monitoring, and an incident response plan.
Q: What is the FTC Safeguards Rule?
A: A federal rule that requires financial institutions, including accounting and tax firms, to build and follow a written program to protect client data, with controls like access limits, encryption, MFA, and vendor oversight.
Q: Does an accounting firm need SOC 2?
A: Not for legal compliance, but many business clients ask for it. Strong, documented security controls satisfy the Safeguards Rule and make a SOC 2 report much easier to earn.
Q: How do you keep tax software running during busy season?
A: With reliable systems, tested backups, proactive monitoring, and responsive support, so software like CCH Axcess, UltraTax, or Lacerte stays up and secure when the whole team is working long hours.
Q: Does Prescient support accounting firms in Chicago and Milwaukee?
A: Yes. Prescient Solutions has supported accounting and CPA firms across the Chicago and Milwaukee areas since 1996, building the security controls GLBA and clients require.
