Tax season is one of the worst possible times for an accounting firm to discover a technology problem.
A server that seemed “fine” in November can become a major problem when dozens of employees are accessing tax software simultaneously. A forgotten user account can create a security gap. An unreliable backup can turn a simple hardware failure into days of disruption. One successful phishing email can put sensitive taxpayer information at risk.
That is why accounting firms should address their biggest IT and cybersecurity risks before tax season begins—not while deadlines are already piling up.
Accounting firms are particularly dependent on reliable technology because nearly every part of the modern tax preparation process involves sensitive information, specialized applications, email, cloud platforms, client portals, document management systems, and remote access.
Your firm does not need to become an IT company. But someone should be proactively identifying weaknesses before those weaknesses become emergencies.
Here are seven areas to evaluate.
1. Outdated or Unpatched Systems
One of the most common IT and cybersecurity risks is also one of the easiest to overlook: outdated software.
Operating systems, tax applications, browsers, Microsoft 365 applications, third-party utilities, servers, firewalls, and other technology all require updates.
Those updates are not simply about adding new features. Many address known security vulnerabilities and software problems.
The challenge for an accounting firm is finding the right balance between keeping systems updated and avoiding unnecessary disruption. Installing updates blindly in the middle of the workday is not a good strategy during tax season. Ignoring updates for months is not a good strategy either.
A managed patching process should identify missing updates, prioritize important security patches, test when appropriate, and schedule installations to reduce disruption.
Before busy season begins, accounting firms should also verify that workstations and servers are still running supported operating systems and that critical tax and accounting applications meet vendor requirements.
2. Weak Account Security and Missing MFA
Passwords alone should not be the only barrier protecting systems that contain sensitive financial information.
Credential theft is a major concern because attackers do not always need to “hack” their way into a network. Sometimes they simply convince an employee to provide a username and password.
Multi-factor authentication, or MFA, adds another layer of verification.
Accounting firms should review MFA protection across Microsoft 365, email, remote access tools, cloud applications, client portals, administrative accounts, and other important platforms.
It is also worth examining old accounts.
Did a seasonal employee leave six months ago but still have access? Does a former vendor still have an administrative login? Are multiple employees sharing the same credentials?
Access should follow the principle of least privilege: employees should have access to the information and systems they need to perform their jobs without receiving unnecessary permissions.
3. Phishing and Social Engineering
A sophisticated cybersecurity platform cannot completely eliminate the human element.
Attackers know accounting employees are busy during tax season. They also know firms regularly exchange documents, payment instructions, login notifications, tax information, and urgent client requests.
That creates an ideal environment for phishing.
An employee rushing between deadlines may be more likely to click an email that appears to come from a client saying, “Here are the tax documents you requested.”
Another employee might receive what appears to be a Microsoft 365 password expiration notice.
A partner could receive an urgent request supposedly from another executive asking for financial information.
Cybersecurity awareness training should teach employees how to recognize suspicious links, unusual attachment requests, fake login pages, impersonation attempts, and unexpected changes to payment information.
Training should not be treated as a one-time checkbox. Security awareness needs reinforcement throughout the year—especially before tax season.
4. Backups That Have Never Been Properly Tested
Many firms will confidently say, “We have backups.”
The more important question is:
Can you restore from them?
Backups are among the most important protections against hardware failures, accidental deletion, software corruption, ransomware, and other disasters.
But a backup that has been failing quietly for weeks is not much protection.
Before tax season, accounting firms should verify that important systems and data are being backed up automatically, backup jobs are being monitored, backup copies are adequately protected, and restoration procedures have been tested.
The firm should also understand its recovery objectives.
If your primary server failed tomorrow morning, how quickly could employees resume working?
Would you lose an hour of data? A day? A week?
Those questions need answers before an emergency occurs.
5. Poorly Secured Remote Access
Remote and hybrid work have changed the technology requirements of accounting firms.
Employees may need access to tax software, Microsoft 365, client documents, practice management platforms, and internal resources from outside the office.
Remote access can improve productivity, but poorly configured remote access can also create another one of the firm’s IT and cybersecurity risks.
Access should be secured appropriately with measures such as MFA, endpoint security, encryption, access controls, secure VPN or cloud configurations when applicable, and properly managed company devices.
A personal computer used casually for work can create problems if it lacks appropriate security, updates, monitoring, or protection.
The goal is not to make remote work difficult. Good security should allow authorized employees to work efficiently without creating unnecessary exposure.
6. No Clear Written Security or Incident Response Plan
Technology controls are only part of cybersecurity.
Your firm also needs a plan.
What happens if an employee suspects their email account has been compromised?
Who should they call?
What happens if ransomware is detected?
Who has authority to disconnect systems?
How are clients, insurers, legal counsel, leadership, and other appropriate parties involved?
Tax professionals should be especially familiar with the IRS’s guidance on safeguarding taxpayer information. IRS Publication 4557 covers security considerations for organizations that handle taxpayer data and discusses areas including security software, passwords, wireless networks, stored client data, phishing, incident response, and the FTC Safeguards Rule. Review IRS Publication 4557: Safeguarding Taxpayer Data
The IRS also continues to emphasize the importance of a Written Information Security Plan, or WISP, for tax professionals.
Security documentation should reflect how your firm actually operates rather than becoming a document nobody looks at after it is created.
7. Reactive IT Support During Your Busiest Season
Finally, consider how your firm currently handles IT problems.
Does something have to break before anyone looks at it?
That approach may seem acceptable during slower parts of the year. During tax season, it becomes much riskier.
Imagine having employees unable to access tax software on March 30 while your IT provider is telling you someone can look at the issue tomorrow.
Accounting firms need more than emergency troubleshooting. They need proactive monitoring, maintenance, cybersecurity oversight, backup verification, account management, patching, and planning.
A good IT strategy attempts to identify the warning signs before the failure occurs.
That does not mean your firm will never experience another technology problem. It means fewer problems should come as complete surprises, and when something does go wrong, there should already be a process for responding.
You can learn more about Iler Networking & Computing’s managed IT and technology services and how proactive IT management can help reduce disruption.
Do Not Wait Until Tax Season to Find the Weak Spots
The best time to address IT and cybersecurity risks is when your team still has time to make thoughtful improvements.
Not January 31.
Not two weeks before a major filing deadline.
And definitely not after a cyberattack or server failure.
Review your cybersecurity, backups, remote access, account security, patching, infrastructure, support processes, and recovery plans before your firm’s busiest months arrive.
The objective is straightforward: when tax season begins, your staff should be thinking about clients and deadlines—not whether the network will survive another day.
If you are unsure where the biggest risks are, start by identifying them.
Schedule a CPA IT Analysis with Iler Networking & Computing.
We can evaluate your firm’s technology environment, identify potential vulnerabilities and operational concerns, and help you determine where improvements should be prioritized before those problems affect your staff or clients.
