Protect Client Information. Maintain Professional Indemnity Compliance.

Stay Secure. Stay Ahead.

Implement security frameworks designed to protect client information while satisfying professional indemnity requirements

The Threats Accounting Firms Face

Accounting practices hold sensitive financial information making them attractive targets:

Business Email Compromise & Trust Account Fraud

Attackers impersonate accounting firms or clients to redirect tax refunds, GST payments, or trust account transfers. BEC is among the top threats to Australian businesses per ASD, with accounting firms particularly vulnerable due to their role in financial transactions.

Client Data Theft & Tax Fraud

Tax file numbers, financial statements, bank account details, and business records enable identity theft and tax fraud. According to ASD, identity fraud is the most commonly reported cybercrime, with accountants holding exactly the information criminals target.

Ransomware Affecting Tax Deadlines

Practice management systems, tax return data, and client files are critical to operations. Ransomware attacks (11% of incidents per ASD) can shut down practices during tax season, destroying client relationships and creating professional liability exposure.

Credential Theft for Client Portal Access

Compromised accountant credentials enable attackers to access client portals, tax systems, and banking platforms. With accountants frequently having elevated privileges in client systems, credential theft creates cascading exposure across multiple organizations.

Phishing Targeting Accountants

Fraudulent emails appearing to come from the ATO, clients, or software vendors. Phishing was the initial access method in 38% of incidents reported to ASD. Accountants are specifically targeted during tax season when urgency and volume create vulnerability.

Insider Threats from Departing Staff

Staff with access to all client files, former employees retaining system access after departure, or inadequate access controls create risk of intentional data theft or accidental compromise. Departing staff may download client lists or sensitive information.

Common Security Gaps in Accounting Practices

Based on security assessments across accounting practices:

Weak Authentication Controls

  • Single-factor authentication on practice management systems
  • No multi-factor authentication for tax software or client portals
  • Weak passwords across critical platforms
  • Former staff retaining system access after departure

Email Security Vulnerabilities

  • Missing email authentication records (SPF, DKIM, DMARC) enabling firm impersonation
  • No advanced phishing protection during tax season
  • Inconsistent staff training on recognizing BEC and fraud attempts

Backup & Recovery Gaps

  • Untested backup restoration procedures
  • Backups accessible to ransomware (not air-gapped or immutable)
  • Local-only backups without offsite redundancy
  • No documented recovery time objectives for tax deadlines

Inadequate Patch Management

  • Irregular software updates during busy season
  • Delayed security patches for practice management systems
  • No systematic vulnerability assessment process

BYOD & Remote Access Risk

  • Staff accessing client data from personal devices
  • Home office environments without adequate security controls
  • No mobile device management or BYOD policy
  • Weak remote access controls for work-from-home arrangements

Incident Response Deficiencies

  • No documented breach response procedures
  • Unclear client notification obligations under Privacy Act
  • Limited incident detection capabilities
  • No tested recovery procedures for tax deadline scenarios

Client Data Classification Gaps

  • No formal data classification policy
  • All staff having access to all client files regardless of need
  • Insufficient logging and audit trails for sensitive data access
  • Client data stored inconsistently across systems

Professional & Regulatory Obligations

Accounting firms face multiple security-related obligations:

Tax Practitioners Board (TPB) Requirements

Registered tax practitioners have explicit obligations to protect client information under the Tax Agent Services Act 2009 and the TPB Code of Professional Conduct.

  • Code item 8 requires tax practitioners to take reasonable care to ensure tax agent services are provided competently
  • This includes implementing systems and processes to protect client information from unauthorized access
  • TPB expects practitioners to implement security controls appropriate to the sensitivity of tax information
  • Breaches of confidentiality can result in TPB sanctions, including deregistration

Privacy Act & Notifiable Data Breaches

Accounting firms handling personal information must comply with Australian Privacy Principles under the Privacy Act 1988, with specific obligations for security and breach notification.

  • APP 11 requires reasonable steps to protect personal information from misuse, interference, loss, and unauthorized access
  • Notifiable Data Breaches scheme requires notification to OAIC and affected individuals when serious breaches occur
  • Security controls directly support Privacy Act compliance and reduce breach likelihood
  • Documented security programs demonstrate "reasonable steps" in event of breach

Professional Indemnity Insurance

PI insurers increasingly require evidence of cybersecurity controls as cyber incidents become leading sources of professional liability claims.

  • Many policies now include cyber-specific questionnaires as part of underwriting
  • Premiums have increased significantly for firms without documented security programs
  • Some insurers require MFA, backup testing, and security training as policy conditions
  • SMB1001 certification provides third-party evidence of security maturity for insurers

ASIC & AFS Licence Obligations (if applicable)

Accounting firms holding Australian Financial Services licences or providing financial services have additional obligations under Corporations Act.

  • RG 255 requires adequate risk management systems, including information security
  • Licensees must protect client assets and information from cyber threats
  • Systematic security controls support ASIC's expectations for risk management frameworks
  • Breach notification obligations to ASIC within specific timeframes

How SMB1001 Certification Supports Accounting Firms

The SMB1001 framework includes five progressive tiers. We specialize in Bronze, Silver, and Gold certification—designed for Australian accounting practices and aligned with TPB requirements, professional indemnity insurance expectations, and the threat landscape facing professional services. Diamond and Platinum tiers exist for enterprise organizations with dedicated security teams.

Bronze

Foundation - 7 Core Areas

Addresses fundamental vulnerabilities commonly exploited in accounting practice breaches:

  • Identity & Access Management: MFA on critical systems, role-based access, offboarding procedures preventing former staff access
  • Data Protection: Encryption for client data at rest and in transit, backup frameworks with tested restoration
  • Threat Prevention: Email authentication (SPF/DKIM/DMARC) preventing firm impersonation, phishing protection, endpoint security
  • Security Awareness: Staff training on BEC, phishing, and tax season fraud tactics
  • Vendor Security: Assessment processes for practice management, tax software, and cloud platform providers
  • Incident Response: Documented breach procedures including Privacy Act notification obligations and TPB reporting
  • Governance: Security policies supporting TPB Code of Conduct and professional obligations

Appropriate for:

  • Sole practitioners to 20-person practices
  • Firms building foundational security capability
  • Practices seeking PI insurance evidence
  • Tax agents demonstrating TPB Code compliance
Silver

Intermediate - 15 Areas

Bronze foundation + enhanced capabilities for growing practices:

  • Advanced authentication mechanisms for elevated privilege accounts
  • Enhanced monitoring and detection for unusual access patterns
  • Remote access security frameworks for work-from-home staff
  • Change management for critical practice systems
  • Systematic vulnerability management and security patching
  • Data classification and handling procedures for different client information types
  • Enhanced vendor risk management for supply chain security

Appropriate for:

  • 20-50 person practices
  • Firms with high-value or high-risk clients
  • SMSF specialists managing sensitive retirement funds
  • Practices with complex technology environments (multiple cloud platforms)
  • Firms holding AFS licences with ASIC obligations
Gold

Advanced - 30+ Areas

Comprehensive security program for sophisticated accounting operations:

  • Network segmentation isolating client data from general systems
  • Security testing and validation frameworks (penetration testing, vulnerability scanning)
  • Advanced incident response with forensic capabilities
  • Comprehensive third-party risk management across all vendors and platforms
  • Privacy and compliance frameworks supporting complex regulatory obligations
  • Security metrics and continuous improvement programs

Appropriate for:

  • 50+ person practices or multi-office operations
  • Firms serving listed companies or high-net-worth individuals
  • Large SMSF administrators
  • Practices prioritizing security as competitive advantage
  • Firms with board-level risk committees

Implementation Approach for Accounting Firms

Our Process:

1

Assessment

  • Current security baseline across practice management and tax systems
  • Client data protection evaluation
  • Staff awareness assessment
  • TPB and Privacy Act compliance review
  • Gap analysis against SMB1001 framework
2

Planning

  • Certification roadmap aligned with practice priorities
  • Resource and budget identification
  • MSP/IT provider coordination
  • Implementation timeline considering tax season constraints
  • Quick wins identification for immediate risk reduction
3

Implementation

  • Security control framework implementation guidance
  • Staff training delivery (BEC, phishing, data handling)
  • Practice management system security hardening
  • Policy and procedure development (incident response, access control, data classification)
  • Email authentication and advanced threat protection deployment
  • Evidence collection for certification audit
4

Certification

  • Readiness assessment
  • Independent audit coordination
  • Certification achievement
  • Ongoing compliance support and annual recertification

Note: We schedule implementation around busy seasons to minimize disruption. Technical implementation is typically performed by your IT resources or managed service provider with our guidance.

What Accounting Firms Achieve

Professional Indemnity Insurance Support

Third-party evidence of security controls for PI insurance underwriting—potentially reducing premiums or improving coverage terms in an increasingly difficult insurance market

Client Confidence & Competitive Advantage

Demonstrate security commitment when clients ask about data protection—particularly valuable when serving high-net-worth individuals, listed companies, or regulated entities

Reduced Cyber Risk

Systematic approach to addressing vulnerabilities commonly exploited in accounting breaches—BEC, ransomware, credential theft, and data compromise

Practice Continuity During Tax Season

Improved ransomware resilience and recovery capabilities protecting practice operations during critical lodgment periods

TPB Code of Conduct Support

Documented security frameworks supporting obligations under the Tax Agent Services Act and TPB Code of Professional Conduct to protect client information

Privacy Act Compliance Support

Security controls demonstrating "reasonable steps" to protect personal information under APP 11, reducing breach likelihood and supporting regulatory defence

Frequently Asked Questions

Q: How does this support TPB obligations?

A: The TPB Code of Professional Conduct requires tax practitioners to protect client information. SMB1001 provides a recognized framework demonstrating systematic security controls—supporting compliance with Code item 8 and reducing risk of TPB sanctions from data breaches.

Q: We already have IT support. Why do we need cybersecurity consulting?

A: IT support manages technology operations. We provide cybersecurity strategy, risk assessment, and certification guidance aligned with accounting industry threats and regulatory obligations. We work collaboratively with your IT provider to implement controls correctly and achieve certification.

Q: Will this disrupt operations during tax season?

A: We specifically schedule implementation around your busy periods. Most technical controls can be deployed during quieter months, with staff training timed to avoid July-October lodgment crunch. Assessment can occur any time with minimal disruption.

Q: Our practice management is cloud-based (Xero Practice Manager, MYOB). Does that mean we're secure?

A: Cloud platforms provide infrastructure security, but you're responsible for access controls, user authentication, data handling procedures, and staff security awareness. Most accounting breaches occur through compromised credentials or phishing—not cloud infrastructure failures. SMB1001 ensures you're managing your responsibilities appropriately.

Q: How long does certification take?

A: Bronze typically 3-4 months, Silver 4-6 months, Gold 6-9 months. Timeline depends on starting security maturity, resource availability, and whether implementation occurs around busy season scheduling constraints.

Q: What if we have a breach during the certification process?

A: SMB1001 includes incident response frameworks from Bronze tier onward. You'll have documented procedures for breach detection, containment, Privacy Act notification, and TPB reporting—exactly what regulators and insurers expect. Having frameworks in place actually strengthens your response capability.

Q: Will this help with our PI insurance renewal?

A: Many accounting PI insurers now ask specific questions about MFA, backup testing, security training, and incident response procedures. SMB1001 certification provides third-party evidence of these controls, potentially improving underwriting outcomes in an increasingly difficult insurance market.

Q: Does this cover platforms like Xero, MYOB, Class Super, and BGL Simple Fund?

A: Yes. SMB1001 includes vendor security assessment and third-party risk management. We evaluate your use of accounting platforms, tax software, and cloud services to ensure they're configured securely and meet your client data protection obligations.

Ready to Protect Client Data & Support PI Insurance Requirements?

Schedule a consultation to discuss how SMB1001 certification supports your accounting practice