Cybersecurity and Accounting: How CPAs Are Becoming Cybersecurity Advisors

In today’s interconnected digital world, the role of accountants is evolving beyond traditional financial management. Clients are increasingly turning to their trusted financial advisors not just for fiscal guidance but also for comprehensive security advice. This shift presents a unique opportunity for accountants to expand their services into cybersecurity without needing to become security experts themselves.

The CPA Evolution

Today’s CPAs must possess enhanced skill sets and broader competencies to effectively serve clients in a digital-first world. Acknowledging this shift, the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) have introduced the CPA Evolution initiative, a new approach to CPA licensure designed to equip CPAs for current and future success. While grounded in a robust foundation of accounting, auditing, and tax principles, this updated approach places a greater emphasis on technology, ensuring CPAs are prepared for all aspects of financial advising, including technology and security.

Starting in 2024, the CPA exam will incorporate a new discipline exam focusing on Information Systems and Controls (ISC). This exam will cover critical areas such as business processes, information systems security and governance, and IT auditing. This addition underscores the growing importance of IT security knowledge within the CPA profession and aims to equip CPAs with the knowledge and tools needed to maintain compliance and security within their operations.

Accountants Can Be Trusted Business Advisors

Accountants are already stewards of their clients’ most sensitive financial information. They have built a foundation of trust over years, ensuring the confidentiality, integrity and availability of financial data. Transitioning into the realm of cybersecurity is a natural extension of this role. Clients trust their accountants to safeguard their financial assets; similarly, they can rely on them to protect their digital assets from cyber threats. With the latest ISC addition to the CPA exam, accountants will have expanded knowledge to help clients navigate technology and security concerns.

By leveraging the existing trust relationship, accountants can position themselves as holistic advisors who not only manage finances but also mitigate cybersecurity risks. This transition enhances client confidence and deepens the accountant-client relationship, leading to long-term partnerships based on comprehensive financial and digital security.

According to Carl Lundberg, partner at accountancy and business services firm Gerald Edelman, “We advise our clients on all aspects of their business, and data and cybersecurity is of increasing importance and focus.”

Accountants Are Experts in Preparation and Protection

Known for their meticulousness and expertise in financial matters, accountants are increasingly valuable in advising clients in cybersecurity.  Their attention to detail helps them speak to security vulnerabilities and recommend solutions to protect sensitive information.

Since accountants are already knowledgeable about the interior workings of their client’s firm, accountants can easily detect areas of vulnerability and make recommendations to close any potential areas of weakness. This built-in expertise is especially valuable for clients looking to safeguard their sensitive data and funds.

Navigating the Landscape of Cybersecurity

Becoming a security advisor does not require accountants to become a cybersecurity expert. Instead, they can focus on understanding the broader landscape of cybersecurity risks and solutions relevant to their clients. Even with generalized knowledge, CPAs can help advise their clients. For more specialized advice, they can partner with specialized cybersecurity firms or consultants to access expert knowledge when needed, providing tailored recommendations and solutions.

This approach allows accountants to offer value-added services without overwhelming themselves with technical details. By staying informed about emerging threats, regulatory requirements, and best practices, accountants can proactively advise clients on cybersecurity strategies that align with their financial goals and risk tolerance.

What is the Future for CPAs?

The journey from accountant to security advisor is paved with opportunities to enhance client trust, expand service offerings, and diversify revenue streams. By building on the foundation of trust established through financial stewardship, accountants can seamlessly integrate cybersecurity advisory into their practice. This evolution not only meets the evolving needs of clients but also positions accountants as indispensable partners in safeguarding both financial and digital assets.

As the landscape continues to evolve, accountants who embrace this transformation will not only protect their clients from cyber threats but also future-proof their own practices against industry shifts. By staying informed, proactive and leveraging strategic partnerships, accountants can confidently navigate the intersection of finance and cybersecurity, ensuring their clients’ holistic success in an increasingly digital world.

Visory can help CPAs and financial advisors provide expert IT and cybersecurity advice to their clients. Beyond providing knowledge, we can also help accounting firms connect and collaborate from any device while ensuring their networks are secure. To find the perfect cybersecurity solution for your needs, contact Visory today.

Source:

https://jobs.accaglobal.com/article/cybersecurity-skills-the-why-what-and-how-ug
https://www.dca.ca.gov/cba/applicants/exam-credit-extensions.shtml
https://nasba.org/blog/2022/02/25/transition-policy