Why Small Businesses Should Conduct a Cybersecurity Audit Before Tax Season

Tuesday, February 25, 2025

Tax season is one of the busiest times of the year for your small business. You’re preparing documents, juggling client demands, and navigating tight deadlines—all while handling sensitive financial data. But have you stopped to think about how secure that data really is?

Cybercriminals love tax season just as much as accountants do. With the sheer amount of sensitive information being shared, stored, and processed, it’s a prime opportunity for them to strike. That’s why conducting a cybersecurity audit before tax season begins isn’t just a good idea—it’s essential.

Here’s why a cybersecurity audit matters, what it involves, and how you can use it to protect your business and your clients.

The Importance of Cybersecurity During Tax Season

Tax season puts your business under a microscope—not just from regulators, but from cybercriminals too. With so much at stake, even a small vulnerability in your systems can lead to big problems.

1. You’re Handling More Sensitive Data

Think about the tax forms, financial records, and client information you deal with during this time of year. Cybercriminals know that financial data is incredibly valuable, and they’ll do whatever they can to get their hands on it.

2. You’re Communicating More Often

You’re emailing accountants, sending files to tax professionals, and collaborating with clients. Every time you share information, you increase the risk of interception or phishing attacks.

3. Cybercriminals Are Targeting Businesses Like Yours

From phishing scams that impersonate the IRS to ransomware attacks that lock you out of your systems, attackers ramp up their efforts during tax season. Without proper precautions, your business could be their next target.

What Is a Cybersecurity Audit?

A cybersecurity audit is like a check-up for your business’s digital health. It’s a systematic review of your systems, policies, and practices to identify weaknesses that could be exploited by cybercriminals.

Here’s What a Cybersecurity Audit Covers:

  1. System Review: Are your software, hardware, and network configurations secure and up-to-date?

  2. Policy Evaluation: Do your current cybersecurity policies cover best practices for protecting sensitive data?

  3. Access Controls: Who has access to your systems, and are they authorized?

  4. Data Protection Measures: Are your files encrypted? Are backups in place?

  5. Compliance Check: Are you meeting regulations like NIST, GDPR, or PCI DSS?

By conducting an audit, you’ll know exactly where your vulnerabilities are—and how to fix them.

Why You Should Conduct a Cybersecurity Audit Before Tax Season

You wouldn’t go into tax season without organizing your finances. So why would you go in without securing your systems? Here’s why a pre-tax-season audit is crucial:

1. Identify and Fix Vulnerabilities Early

An audit lets you catch issues—like outdated software or weak passwords—before they become a problem. By addressing these vulnerabilities now, you reduce the risk of costly breaches later.

2. Reduce the Risk of a Breach

Tax season is high-risk, but a cybersecurity audit helps you minimize that risk. Whether it’s phishing, ransomware, or a data breach, proactive security measures can stop attacks in their tracks.

3. Ensure Compliance

Audits make sure your business is meeting compliance requirements, so you can avoid fines and legal trouble. Plus, being compliant shows clients you’re serious about protecting their data.

4. Build Client Trust

Your clients expect you to safeguard their sensitive information. By conducting an audit and strengthening your defenses, you’re showing them their trust is well-placed.

5. Improve Your Processes

Audits often reveal inefficiencies in how data is stored, accessed, or shared. Fixing these issues not only boosts security but also makes your business run more smoothly.

How to Conduct a Cybersecurity Audit

Ready to get started? Here’s how to conduct a thorough cybersecurity audit:

Step 1: Assess Your Systems and Data

  • Identify where sensitive data is stored and how it’s accessed or shared.

  • Review your software, hardware, and network configurations for vulnerabilities.

Step 2: Evaluate Access Controls

  • Ensure only authorized personnel can access your systems and sensitive data.

  • Implement or update multi-factor authentication (MFA) to secure critical accounts.

Step 3: Review Policies and Training

  • Look at your current cybersecurity policies. Are they up-to-date?

  • Check if your employees are trained to handle data securely and spot phishing scams.

Step 4: Test Backup and Recovery Systems

  • Confirm your backup systems are functional and that you can quickly restore data if needed.

Step 5: Document and Act

  • Create a report of vulnerabilities and recommended fixes.

  • Develop a clear action plan to address issues before tax season kicks into high gear.

How Lockwell Simplifies Cybersecurity Audits

Conducting an audit on your own can feel overwhelming, but that’s where Lockwell comes in. Our solutions make cybersecurity simple, affordable, and effective.

1. Streamlined Audit Tools

Lockwell provides the tools you need to identify vulnerabilities and ensure your systems are secure.

2. Fast Compliance Readiness

With Lockwell, you can achieve NIST compliance in just 30 days—right in time for tax season.

3. Real-Time Monitoring and Alerts

Our platform continuously monitors your systems and alerts you to potential threats, so you can take action immediately.

4. Employee Training Resources

Equip your team with the skills they need to handle sensitive data and spot phishing scams with Lockwell’s training materials.

5. Expert Support

Not sure where to start? Lockwell’s cybersecurity experts will guide you through the audit process and help you address any vulnerabilities.

Conclusion

Tax season is stressful enough without adding a data breach to the mix. By conducting a cybersecurity audit before tax season, you’re not just protecting your business—you’re protecting your clients, your reputation, and your peace of mind.

Don’t leave your business vulnerable this tax season. Explore Lockwell’s solutions today and take the first step toward proactive, affordable cybersecurity.