When most people think of accounting services, they picture tax returns, financial statements, and business advice. But in today’s environment, there’s another critical side to it: cyber security.

Cyber threats are constantly evolving, and the risks to sensitive information and business operations are real. The Australian Signals Directorate recorded that Business Email Compromise (BEC) alone accounted for almost $84 million in reported losses last year, with average losses of more than $55,000 per incident. For small businesses, the self-reported average cost of a cyber incident is $49,600; for medium businesses it’s $62,800, and for large businesses $63,600.

These aren’t isolated cases. A staggering 63% of Australians reported experiencing a cyber attack or data breach in the past year which is almost two-thirds of the population. The total economic impact of pure cyber crime in 2019 was estimated at $3.5 billion, with victims recovering only $389 million. Financially motivated attacks make up 65% of all incidents, showing just how common it is for cyber criminals to target financial systems and data.

Building security into every part of your accounting

Forward-thinking accountants, like Piteo Accounting & Advisory, know that good advice isn’t enough. They also need to (and help you to) protect the systems that hold and process sensitive information such as client financial records, tax file numbers, bank account details, payroll data, and business performance reports. Today’s accounting services now integrate measures like encryption, secure data storage, and real-time fraud detection to reduce the risk of unauthorised access or manipulation.

Encryption is converting sensitive information into a coded format that can only be read by someone with the correct digital key. In accounting services, it’s a core security measure used to protect client data from being intercepted or accessed by unauthorised parties. Even if the data is stolen, encryption helps make it unreadable and useless to cyber criminals.

Secure data storage means keeping financial and personal information in systems that are protected against unauthorised access, loss, or damage. This often involves using encrypted servers, reputable cloud platforms with strong security protocols, regular backups, and strict access controls. So that data remains confidential, intact, and accessible only to people who are allowed to access it.

Real-time fraud detection is the use of technology to monitor financial transactions and system activity as they happen, flagging anything unusual or suspicious straight away. In accounting services, this might look like spotting irregular payment patterns, unexpected account changes, or logins from unusual locations. By identifying potential threats quickly, accountants can act quickly to help you verify activity, block fraudulent transactions, and prevent small issues from becoming costly problems.

Worringly, almost one in five small businesses still use no anti-fraud controls at all, leaving them in a very vulnerable state.

What strong protection involves

Cyber security isn’t a “set and forget” or once-off task. It’s an ongoing process that requires constant attention. The most secure accounting services treat and position cyber incidents as a matter of “when” rather than “if” and have tested incident response plans ready to go.

Strong protection starts with:

• secure-by-design systems
• multi-factor authentication
• long, unique passphrases (stored in a password manager)
• automatic software updates
• regular backups of important files
• staff trained to spot phishing attempts and scams

Following best-practice frameworks, such as the Australian Signals Directorate’s evolving Essential Eight, helps accountants and their clients stay ahead of new threats. We can help guide you in some of these areas, and you can be assured we adopt these in our own organisation.

What to look for in security-savvy accounting services

When selecting an accountant, don’t just look at how long they’ve been in business or their fees. Ask about the cyber security measures they have in place. Are they encrypting client data? Do they use fraud detection tools? How do they back up and protect financial records?

As a technology-forward firm, data protection and cyber security are paramount at Piteo Accounting & Advisory. That’s why we use the following to keep our clients’ data secure:

Practice Protect: The world’s #1 data security platform for accounting firms. With complete control over client data access and user passwords, they ensure ultimate security.

Content Snare: Streamlining data collection from our clients securely and efficiently.

FuseSign: Simplifying document signing so that no more usernames or passwords needed. This software allows access to sign documents on any device with a one-time code sent to mobile phones.

Modern accounting services don’t just balance your books and provide business advice; they help safeguard your livelihood.

If you have concerns about your own business’s safety, let’s chat today.

Disclaimer: It is important to seek the advice of a qualified professional before making any financial or accounting decisions. Each individual’s financial situation is unique, and not all information provided may be relevant to your specific circumstances.