Accounting firms manage some of the most sensitive information available—tax returns, payroll records, financial statements, and personal identifiers. With cyberattacks on the rise and regulators placing greater emphasis on data protection, firms can no longer afford to treat compliance as optional. For accountants, compliance isn’t just about avoiding penalties; it’s about protecting client trust and ensuring the technology behind your practice is secure and reliable.
At the federal level, one of the most important requirements for accountants is the Gramm-Leach-Bliley Act (GLBA). This law requires financial institutions, including accounting firms, to maintain a written information security plan, safeguard client records, and train employees on proper data handling. The IRS Safeguards Rule adds another critical layer by requiring tax preparers to encrypt taxpayer data, use multi-factor authentication, and document how information is protected. For firms that prepare taxes, these rules form the foundation of compliance.
In New York, firms must also pay close attention to the SHIELD Act, which sets the state’s data security standard. The law requires businesses to implement “reasonable safeguards” to protect the private information of New York residents. That means putting administrative, technical, and physical measures in place to reduce the likelihood of a breach. Importantly, the law applies not only to New York-based firms but also to any business that handles data belonging to New York residents. For accountants, noncompliance with the SHIELD Act can result in fines and—perhaps more damaging—serious reputational harm.
Beyond these federal and state obligations, accounting compliance often extends into industry-specific rules. Firms that work with publicly traded companies must comply with the Sarbanes-Oxley Act (SOX), which enforces strict internal controls, recordkeeping, and data retention requirements. If an accounting practice accepts credit or debit card payments, it must comply with the Payment Card Industry Data Security Standard (PCI DSS). And in cases where firms handle healthcare billing information, HIPAA may apply as well. (More about compliance)
For accountants, all of these requirements translate into very practical technology needs. Secure communication channels, encrypted storage, and controlled access to financial records are essential. Regular data backups and tested recovery processes protect against downtime, while continuous employee training reduces the risk of phishing and insider threats. Logging, monitoring, and documented audit trails ensure that firms can demonstrate compliance if regulators ever come calling.
At a high level, compliance for accountants falls into three categories: federal rules such as GLBA and IRS Safeguards, state laws like New York’s SHIELD Act, and industry-specific standards such as SOX, PCI DSS, or HIPAA. Firms that address all three consistently not only reduce risk but also position themselves as trustworthy, reliable partners for their clients.
That’s where Better IT Now comes in. We specialize in helping accounting firms with 10 or more employees design and manage technology that not only works efficiently but also meets today’s compliance requirements. From secure communication systems to proactive monitoring, backup, and staff training, our solutions are tailored to the unique needs of accountants. With Better IT Now as your IT partner, you don’t just get technology support—you get peace of mind knowing your firm is prepared for both regulators and cyber threats.
Ultimately, compliance goes hand in hand with technology. By implementing secure systems and documenting safeguards, accounting firms in New York and beyond can protect client data, remain compliant, and maintain the trust that is so essential in this profession.
