Tax season. Year-end closing. Audit prep. For Fraser Valley accounting firms, compliance season isn’t just about meeting deadlines—it’s about surviving the most dangerous period of your business year. This compliance season IT checklist for Fraser Valley accountants addresses the 12 essential security measures that separate firms that thrive from those that become cautionary tales.
During compliance season, accounting firms face 900 cyberattack attempts per week, a 300% spike compared to non-peak periods. Cyberattacks on accounting firms have surged 300% since 2020, and 88% of small businesses experiencing ransomware find themselves locked out of critical client data right before filing deadlines.
Why Fraser Valley Accountants Become Prime Targets
Compliance season transforms accounting firms into high-value targets under maximum stress. Your team processes hundreds of returns while working extended hours. Fatigue impairs judgment. That suspicious email clicked at 11 PM triggers devastating consequences.
Many Fraser Valley firms hire seasonal workers needing immediate system access without comprehensive security training. Your firm exchanges hundreds of emails daily containing Social Security numbers and bank details, creating a massive attack surface.
Statistics reveal the danger:
- 60% of data breaches involve human error, climbing higher during high-stress periods
- 43% of cyberattacks target small and medium-sized businesses
- 46% of cyber breaches impact businesses with fewer than 1,000 employees
- 95% of cybersecurity breaches stem from human mistakes multiplying when teams are overworked
The IRS reported a 50% increase in financial data protection audits. Fraser Valley firms face external cybercriminals and regulatory bodies imposing severe penalties for inadequate protection.
The Real Cost When Ransomware Strikes
When ransomware encrypts systems 48 hours before tax deadlines, the financial impact proves devastating. Client returns cannot be submitted, extensions must be filed, and penalties accumulate.
Research shows 89% of breached firms lose over half their clients within six months. One mid-sized firm experienced ransomware before the 2024 tax season. Within 12 months, they closed permanently.
The Gramm-Leach-Bliley Act applies directly to CPA firms with severe penalties for violations. The IRS audits firms on cybersecurity readiness following breaches.
Foundation Security Controls
Every effective compliance season IT checklist for Fraser Valley accountants begins with foundational controls providing immediate risk reduction.
Step 1: Implement Multi-Factor Authentication
The 2025 Verizon Report reveals 88% of web application attacks involved stolen credentials. Only 3% of leaked passwords met basic standards. With 2.8 billion passwords exposed in 2024, single reused logins grant attackers complete system access.
Multi-factor authentication stops 90% of phishing attacks. Deploy MFA across email, tax software, accounting platforms, cloud storage, and administrative portals.
Step 2: Encrypt All Client Data
Encryption transforms data into scrambled code worthless to attackers. Many Fraser Valley firms send sensitive information via standard email without encryption, making interception easy for cybercriminals.
Use secure file-sharing platforms designed for professional services, providing encryption, access logs, and audit trails demonstrating PIPEDA compliance.
Step 3: Backup with the 3-2-1 Rule
Ransomware targets backups, knowing firms with backups won’t pay. The DHS recommends maintaining three data copies, two media types, and one backup completely offline.
Test backup restoration monthly. Many firms discover corrupted backups only after ransomware strikes. Microsoft doesn’t guarantee cloud backups, so firms need independent solutions.
Email Security and Access Controls
Step 4: Deploy Advanced Email Filtering
Email remains the primary attack vector with phishing accounting for 60% of breaches. Modern phishing emails perfectly mimic IRS, QuickBooks, or DocuSign communications.
Critical email security measures:
- Implement authentication protocols (DMARC, SPF, DKIM) filtering spoofed emails
- Deploy AI-powered filters detecting subtle phishing indicators
- Enable real-time link scanning before employee clicks
- Use attachment sandboxing opening suspicious files in isolated environments
- Create banners warning when messages originate externally
Step 5: Limit System Access Based on Roles
Role-based access ensures staff access only required data and systems, dramatically reducing compromise risk.
Create temporary accounts with limited permissions expiring after tax season. Never share administrative credentials. Every system access should trace to specific individuals for accountability.
Step 6: Monitor for Unusual Activity
Cybercriminals quietly explore networks before attacking. Average breach identification takes 194 days, providing unrestricted access.
Monitor for unusual patterns: login attempts from unusual locations, access outside normal patterns, bulk downloads, failed authentication, or unapproved changes. Organizations using advanced detection identify breaches 28 days faster.
Remote Security and Training
The compliance season IT checklist for Fraser Valley accountants must address remote vulnerabilities cybercriminals actively exploit.
Step 7: Secure Remote Access
Many Fraser Valley firms now support hybrid or remote work, but most implemented these changes without adequate security measures. Virtual Private Networks encrypt connections between remote workers and firm systems. Require VPN use for any remote access. Ensure remote workers use company-managed devices with endpoint protection.
Step 8: Conduct Quarterly Security Audits
Professional assessments examine infrastructure, configurations, access controls, and PIPEDA and GLBA compliance.
Quarterly audits prove valuable because threats evolve constantly. Vulnerabilities emerge regularly. Software updates introduce gaps. Regular audits ensure resilient cybersecurity posture.
Step 9: Run Monthly Phishing Simulations
Simulations send fake phishing emails tracking who clicks suspicious links. Intensify during compliance season when fatigue increases vulnerability.
Use realistic scenarios: fake IRS notices, DocuSign requests, urgent messages, or payment changes. Track results and provide immediate training for failures.
Verification and Incident Response
Step 10: Establish Clear Verification Protocols
Business Email Compromise attacks target accounting firms with sophisticated impersonation schemes. Cybercriminals study communication patterns to craft convincing requests appearing to come from partners, clients, or vendors.
Implement mandatory callback verification for financial transaction requests using phone numbers from your independent records, not numbers in suspicious emails. Establish code words for sensitive requests. Create separate approval workflows for transactions above certain thresholds.
Step 11: Develop and Test Your Incident Response Plan
Every Fraser Valley firm needs comprehensive incident response plans defining roles, establishing communication protocols, and outlining actions during cybersecurity incidents. Address critical questions: Who makes decisions during breaches? How will clients be notified? What external experts will be contacted?
Conduct tabletop exercises twice yearly where teams walk through breach scenarios. These simulations reveal plan gaps, clarify responsibilities, and build confidence for effective responses.
Step 12: Vet All Third-Party Vendors
Supply chain attacks account for 30% of data breaches, exploiting relationships between accounting firms and technology vendors. Cybercriminals compromise software providers or cloud services, then use trusted connections to access firm systems.
Key vendor security requirements include:
- Review security certifications (SOC 2, ISO 27001) and verify current independent audits
- Examine data handling practices including storage locations, access controls, and encryption standards
- Verify breach notification procedures and required response timelines in service agreements
- Confirm adequate cyber insurance coverage protecting both vendors and clients
- Embed cybersecurity requirements into contracts with provisions for security audits
Conduct thorough vendor risk assessments before implementing new platforms. Continuously monitor vendor performance because security postures change over time.
Take Action Before Crisis Strikes
Implementing this compliance season IT checklist for Fraser Valley accountants protects client data during vulnerable months. However, reading this accomplishes nothing if implementation waits until you’re drowning in tax returns.
Start now. Begin with foundational security controls in steps one through three providing immediate risk reduction. Multi-factor authentication, encryption, and continuous backups stop most attacks before they gain traction.
The reality facing Fraser Valley firms isn’t abstract. Cybercriminals actively target your industry with increasing sophistication. Firms delaying security investments face dramatically higher risks of devastating breaches destroying client trust and potentially ending businesses permanently.
- 29% of small businesses suffering data breaches lose customers permanently due to trust issues
- 70% of small businesses report recovering from cyberattacks proves harder than natural disasters
- Only 17% of small companies carry cyber insurance, leaving most financially exposed
- The average breach identification and containment spans 241 days, meaning eight months of attacker access
Your clients trust you with their most sensitive financial information. That trust carries responsibility to implement proper safeguards protecting their data as carefully as you manage their finances. Firms recognizing this responsibility and acting decisively will not only survive compliance season but build competitive advantages through demonstrated security competence.
Cybersecurity isn’t an IT problem. It’s a business survival imperative determining whether your Fraser Valley accounting firm thrives or closes after the inevitable breach. The choice is ultimately between proactive protection and reactive damage control.
Sources:
- Accounting Today, “Cyberattacks on accounting firms have surged 300% since 2020”
- Practice Protect, “Accounting firms face an average of 900 cyberattack attempts per week during tax season, a 300% spike compared to non-peak periods” and “IRS reported a 50% increase in financial data protection audits”
- Verizon Data Breach Investigations Report 2025, “88% of attacks on web applications involved stolen or brute-forced credentials” and “60% of data breaches involve human error” – Verizon
- IBM Cost of a Data Breach Report 2025, “Average time to identify and contain a breach fell to 241 days” and “Organizations using threat intelligence identify threats 28 days faster on average” – IBM
- Huntress, “Ransomware impacts smaller organizations more, used in 88% of breaches on non-enterprise businesses”
- StrongDM, “46% of all cyber breaches impact businesses with fewer than 1,000 employees” and “Only 17% of small companies carry cyber insurance”
- Astra Security, “43% of cyberattacks target small and medium-sized businesses” and “95% of cybersecurity breaches are attributed to human error”
- Qualysec, “29% of small businesses that suffer data breaches lose customers permanently due to trust issues” and “70% of small businesses say recovering from a cyber attack is harder than dealing with a natural disaster”
- RightWorks, “89% of breached firms lose over half their clients within six months”
- Secureframe, “30% of data breaches involved a third party”
- Bright Defense, “Investing in multi-factor authentication reduces phishing attacks by 90%”
