Data Privacy in 2025: What Every Accountant Needs to Know

Did you know?  Data privacy is a global concern, with 71% of countries having enacted data privacy laws. (Edge Delta)

As we all know, the internet is a sphere that is revolving around every corner of the world and has become one of the most valuable global assets. 

But because of its availability, are a robust amount of Cyber threats that are trying to infiltrate into the financial framework of crucial domains like a famous accounting business,

Many people and field professionals don’t know how to create an action plan or take the necessary prevention steps to repel these attacks. 

That’s why this blog post aims to provide all the pivotal information that is required in 2025 to stay one step ahead of these concerns.

Let’s begin!

Key Takeaways 

• Understanding the state of data privacy in 2025 
• Evaluating the key formations and regulations to keep an eye on
• Discussing the client’s expectations on this segment
• Discovering the best practices for accounting services
• The end note

The State of Data Privacy in 2025

Cybersecurity is a concern in accounting more than it has ever been because of the growing volume and sensitivity of client financial data. 

Gone are the days of storing data in physical files, and although it’s much easier for companies that have permission to view it, it’s also easier for cybercriminals anywhere in the world because malicious parties can access it online. 

The most common cybersecurity risks accountants are likely to face in 2025 include:

• Phishing: This is a deceptive tactic where cybercriminals manipulate accountants into disclosing sensitive information via fraudulent emails, messages, or websites.
• Ransomware: This refers to harmful software that encrypts accounting data, rendering it inaccessible until a ransom is paid, thus hindering access to essential financial records and systems.
• Cloud breaches: Such incidents take place when unauthorized individuals gain access to or steal financial information stored online, often due to inadequate security measures or vulnerabilities in the platform.

Intriguing Insights 
This infographic shows the most recurring concerns of people during a data breach, and most respondents are scared of losing their financial information. 

Key Data Privacy Regulations to Watch

You need to be aware of a few key data privacy regulations to ensure you don’t operate outside of guidelines. If you neglect to follow them, you might get charged thousands of dollars.

The main regulations you need to be aware of as an accounting company are:

• GDPR: The General Data Protection Regulation (GDPR) is an EU law requiring strict data protection for personal information. Professionals who are working with EU clients should be more proactive towards these regulations to avoid reputational damage.
• CCPA: The California Consumer Privacy Act (CCPA) gives consumers control over personal data. To meet the legal obligations of this terrain, financial advisors must provide data transparency, consent management, and secure storage.
• Updates in US and global laws: Privacy laws worldwide are evolving, with more U.S. states and countries introducing stricter rules. Bookkeepers must ensure all the necessary laws to avoid trouble with various jurisdictions. 

Accounting practices are significantly impacted by these regulations because they guide how sensitive customer data, like bank details and the amount of income, is stored. Non-compliance with these regulations can result in hefty fines and damage to the company’s reputation. 

Interesting Facts 
In 2023, security breaches saw a 72% increase from 2021, which had the previous record. 
(Source)

Client Expectations Around Data Privacy

Many clients are aware of how much personal data companies collect and how they use and store it online, and some are aware of the regulations in the paragraph above. These clients are constantly demanding transparency and accountability from their chosen firms to get assurance from threats and their prevention methodologies.  

You promote trust and a positive business reputation when you respect and observe data privacy regulations transparently. Another thing to note is that not every company has a privacy policy. If you write and publicize one, you stand out from the crowd as a company to trust.

Best Practices for Accountants in 2025

Following best practices is a good idea to ensure that you offer the best service to customers while protecting their sensitive data and maintaining your reputation as a company that cares for customer privacy. 

Use of secure accounting software and encrypted platforms

Using modern accounting tools with built-in encryption ensures that financial data is protected both in storage and during transmission. These platforms reduce the risk of cyberattacks and build client trust through secure digital practices through secure digital practices.

Multi-factor authentication and access controls

Multi-factor authentication requires users to verify their identity using more than just a password to implement it. Combined with role-based access controls, this limits data access to only authorized personnel, reducing the chances of internal and external breaches.

Regular cybersecurity audits and staff training

Cybersecurity audits and regularly using an automated pentest tool help identify system weaknesses, while ongoing staff training ensures employees can recognize and respond to threats like phishing or malware. Together, they create a strong, informed defense that reduces human error and technical vulnerabilities.

Data minimization and secure data disposal

Accounting firms reduce their risk by collecting only necessary client data and securely deleting it when no longer needed. This is achieved by collecting only necessary client data and securely deleting it when no longer required. This approach ensures compliance with privacy laws and limits damage in a data breach.

Clear documentation and policies for compliance

Documented data protection policies help ensure legal compliance, guide daily operations, outline employee responsibilities, and guide daily operations. They also provide a reliable framework for responding to incidents, audits, or client inquiries about privacy and security protocols.

Conclusion

Prioritize data privacy in 2025 if you value your accounting customers. 

High client awareness of how much data accounting companies hold and how they store it is high, and they have high expectations, too. You will win their loyalty for years if you can match these expectations. 

The best strategy is to be proactive, not reactive. Follow rules and regulations, considering all the metrics involved, and make a privacy policy to reassure customers about your security concerns. A reactive approach will result in a negative impact on your organization.  A final point to remember is this: Protecting client data is protecting your business.

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