How Accountants Can Choose the Right Software for Their Firm
In today’s fast-paced digital world, choosing the right accounting software for your firm is a strategic decision that can significantly impact productivity, and client satisfaction, and enhance your cybersecurity.
With cyber threats on the rise, it’s essential for accounting firms to focus not just on efficiency, but also security when picking software for their firm. Here’s a guide to help you select the right software for your firm while keeping cybersecurity in mind.
1. Understand Your Firm’s Unique Needs
Every accounting firm is unique, with its own range of services, client base, and data management requirements. This means your needs may be slightly different to that of another firm; think about the following:
- Client Data Volume: Does your firm manage a large number of clients, each with substantial financial data, or do you handle a select few with extensive accounts?
- Type of Services Provided: Does your firm focus on tax preparation, auditing, financial consulting, bookkeeping, or a mix of services?
- Collaboration Needs: Do you need software that allows multiple team members to access and edit files simultaneously?
- By clearly defining your needs, you’ll be better prepared to evaluate software features and narrow down your choices.
2.Prioritize Security and Compliance Features
For accountants, safeguarding sensitive client information is not just important, it is also the law. When choosing software, look for solutions that offer robust cybersecurity measures. Here are key security features to consider:
- Data Encryption: Ensure the software encrypts all data, both at rest and in transit, to protect against unauthorized access.
- Two-Factor Authentication (2FA): 2FA adds an extra layer of security by requiring users to verify their identities using two separate methods.
- Regular Software Updates: Choose a software provider which frequently updates its’ software to defend against emerging threats. Hackers are constantly finding new ways to bypass security, so regular updates (sometimes called patches) are crucial.
- Compliance Certifications: Look for certifications such as SOC 2, PCI DSS, and ISO 27001, which indicate the software meets industry standards for data security and regulatory compliance.
Pro Tip: Verify the software provider adheres to industry standards and regulations, such as GDPR (General Data Protection Regulation) or CCPA (California Consumer Privacy Act), especially if you’re handling international clients.
3. Assess Cloud vs. On-Premises Software
Many accounting firms are moving to cloud-based solutions for greater flexibility and accessibility. In fact, it is likely going to be the only solution in a decade or so as many companies are phasing out their desktop versions of their software.
However, it’s essential to consider the security implications of cloud vs. on-premises software.
- Cloud-Based Software: These solutions offer convenient remote access, which can enhance productivity. However, cloud-based software is generally hosted by third parties, so make sure to choose a reputable provider with strong cybersecurity practices.
- On-Premises Software: This option gives you complete control over your data, which can be beneficial for firms concerned about data sovereignty. However, on-premises software requires more in-house maintenance and potentially higher upfront costs for servers and security measures. Not to mention, as discussed above, many companies are phasing this out.
Security Tip: If opting for a cloud-based solution, choose a provider with robust security protocols and data centers with high-security standards, look for ISO or SOC 2 compliance.
4. Evaluate Integration and Scalability Options
Accounting software doesn’t exist in a vacuum. It often needs to work seamlessly with other tools, such as customer relationship management (CRM) systems, payroll software, and file-sharing platforms. Ensure the software you choose integrates with the tools your firm already uses.
Additionally, as your firm grows, so will your cybersecurity needs. Choose software that offers scalable security options, such as customizable user permissions and advanced threat detection features, which can grow with your firm.
5. Analyze Cost vs. Value for Security Features
Security-focused accounting software may come at a higher price, but investing in a secure platform can save your firm from costly breaches, loss of clients, and protect your reputation. Look beyond the initial cost and consider the long-term value that enhanced security provides.
- Total Cost of Ownership (TCO): Calculate the TCO by considering the software’s upfront costs, ongoing subscription fees, and potential savings from avoiding data breaches.
- ROI on Cybersecurity: Investing in a secure software solution can prevent costly data breaches and build trust with clients, ultimately enhancing your firm’s credibility and client retention.
6. Request a Security-First Software Demo
Before committing to a new software solution, request a demo, it doesn’t just have to be cybersecurity-focused, but ensure you ask some questions. During the demo, evaluate the software’s security settings, user permissions, and data access controls. Don’t hesitate to ask the provider about their security track record and to provide proof of security certifications.
Ask These Questions:
- How does the software handle data breaches and incident response?
- What security features are included to protect client data?
- Is there an option for additional security add-ons?
Final Thoughts
Choosing accounting software is a significant investment, and with cybersecurity risks constantly evolving, accountants must be vigilant about data protection. By carefully evaluating your firm’s needs, prioritizing security features, and investing in scalable and secure software, you can protect your clients’ sensitive information while improving your firm’s efficiency.
With the right software, you’ll not only enhance your firm’s operations but also build trust with clients by ensuring that their data is in safe hands.
