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TECHNOLOGY FOR ACCOUNTANTS
IT Support & Advice For Australian Accountants

Why is Cybersecurity Essential to Accounting?

According to the reports by the Forbes magazine, global accounts of cybercrime will reach $2 trillion by the year 2019. Cyber-attacks are now a bigger threat to society than nuclear weapons according to Warren Buffet. Ginni Rometty, the president and CEO of IBM describes cybercrime as the biggest threat to every profession across all industries and companies. According to the National Computer Security Survey which is conducted by the US Department of Justice, 68% of all cybercrimes result in losses more than $10,000 and victims usually experience a downtime in their services which goes beyond 24 hours.

These damages are especially critical during the tax season when a breach of client data or theft can critically affect any kind of accounting practices. In today's world of growing cybercrime, taking proactive measures have become a necessity. There are a plethora of varieties of cyber-attacks and the vulnerabilities that they employ such as malware, ransomware, social engineering, brute force attacks and others. Thus, no single solution will ensure complete IT security of the business. The sheer variety of attacks and the speeds with which cybercriminals engineer new kinds of attacks makes it an imperative to updated with the latest trends in the world of cybersecurity and update security systems and anti-malware software accordingly.

Effects of Hacks on Accounting

Cyber-attacks not only disrupt regular business practices and industrial processes, but it also wreaks havoc on accounting. Accountants are no longer simple bookkeepers that tally and maintain numbers. Handling and maintaining all kinds of financial data and records within an organization is one of the most important roles. They are also involved in predicting a course for the future of the company.

Any kind of cyber-attack that targets the accounting department is likely to gain access to a lot of sensitive documents which details all of the company’s internal sales, profits, client information and customer details. The employees of the accounting department thus need to be trained in safe operational protocols and need to remain actively vigilant for any kind of loopholes in practices. Added to this, when attacks involve the loss of capital, it entails double-work for the accounting department to take into account all the damages and the ways it affects future targets. The accounting needs to take into account all the exchange of capital that takes place between the company and outside parties. Cyber-attacks are unplanned phenomena that can put strategies to halt.

 

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