Step-by-Step Guide to Cloud Accounting Security in 2026
Accountants are on the cloud. You use tools, such as Expensify, QuickBooks Online and dozens of others. But when was the last time you thought about your cloud accounting security?
It’s not on the top of most people’s to-do lists, but when you read statistics like the ones below, you quickly realize your firm and client data may be at risk:
- 76% of organizations report a lack of cloud security teams
- 80% of companies face cloud security issues each year
- 96% of businesses are concerned about their ability to manage cloud security
Cloud service providers are supposed to manage the security of their own systems, but there is more that you can do to protect yourself.
We’ll explain some of the basic measures that you can put in place today to strengthen your security.
Access Controls
Access controls are your first line of defense when trying to stop others from accessing your important data. You can do this on most modern cloud platforms to help combat internal fraud and external risks.
How?
Implement Mandatory Multi-Factor Authentication (MFA)
MFA is one of the best ways to increase your cloud accounting security, and it’s proven to lower the risk of an attack by 99%. You can do this by either:
- Using an authenticator app
- Using physical keys
- Requiring a text message to log into an app
XERO, QBO, bank portals and many of the other tools you use already offer MFA and some of them require it.
Hackers prefer low-hanging fruit when carrying out an attack, and once they realize that your account has MFA enabled, there’s a good chance they’ll move on to their next potential victim.
Follow the Principle of Least Privilege
Giving every team member maximum access to data or platforms is never a good idea. When available, grant the least privilege possible to an employee to do their job. Any more and you lower your business’s security.
And there’s one more important fact to note: disable accounts the moment someone leaves your employment.
You can do the same for clients.
Maintain strict privileges to your business’s cloud accounts to keep them protected.
Require the Use of a Password Manager
Do you use the same password across multiple sites? If so, it’s a recipe for disaster. Here’s what happens:
- Someone hacks Site A
- They try the same password on 25 sites with your login information
Instead, use a password manager that will generate unique, difficult passwords for all of the sites and platforms you use. A few options worth exploring are:
While Lastpass is well-known, it’s worth noting that they were hacked multiple times in the past few years, so use them at your own risk.
Protect Data
If someone does gain access to your data, you can negate the damage with the help of encryption. Encrypted data is unreadable, helping protect your data from getting in the wrong hands.
Require a VPN or Secure Network Connection
VPNs are a great way to create an encrypted tunnel between your devices and the end party. For example, you can run a VPN to protect your data and privacy. If someone conducts a “man in the middle” attack and intercepts data between you and another party, it will be encrypted.
Whether you opt for a VPN or secure network connection, remember that they will both work to secure your data.
Only Use Encrypted Client Portals
Establish policies and procedures that encrypt all client portals and communications. You’ll also need to educate your clients on the danger of:
- Transferring data or files via email
- Using any platform to send files outside of approved client portals
Require Full-Disk Encryption on All Devices
Cloud safety is one part of the bigger equation when securing your devices. You can, and should, also encrypt all of your devices. Full encryption protects against the risk that someone forgets a smartphone or laptop somewhere and someone gains access to a treasure trove of data.
Tools like BitLocker or FileVault offer robust encryption options for Windows and Mac, respectively.
Plan for the Worst
If you plan for the worst, the worst-case scenario is that you’ll have a plan if something goes wrong.
Vendor Due Diligence
Always vet your vendors to ensure that they are following security best practices. You want to be sure that the vendor has:
- SOC 2 Type II certification, or
- ISO 27001 certification
Create a Backup Plan
What happens if your data is deleted, corrupted or held ransom? Always make multiple copies of your data, ideally one:
- Physical copy off-site
- On-site copy
- Cloud copy
Redundancies allow you to quickly recover from data loss or attacks.
Have a Written Information Security Plan (WISP)
WISPs are often put into templates that your team will follow for:
- Employee training
- Phishing response
- Remote access
- Security best practices
Train Staff on Cybersecurity
Human error leads to security breakdowns. Quarterly staff training on security best practices will go a long way in preventing attacks, especially from poor password usage, phishing and social engineering.
Be proactive with your security measures to protect both your business and client data from continually growing cyberthreats.
To learn more about cloud accounting security or how we can help you with your accounting needs, schedule a consultation now!
