Another year is coming to a close. Amid the holiday prep and celebrations, many individuals and businesses are also wrapping up their financial year and getting organized for tax season. The most common tasks include gathering receipts, statements, and confirming deadlines.
But there’s one, often-overlooked step you want to be sure to complete: making sure your sensitive financial data is properly secured.
If you spend a bit of time ensuring data security now, you could save hours later. At Neely’s we understand (and appreciate!) the desire to be on top of tax season. That’s why we prioritize both accuracy and security in all our operations to keep our clients safe and stress-free. Keep reading to learn our top tips for financial data security so you can approach tax season with confidence.
Why Data Security Is Critical During Tax Season
Your tax documents contain sensitive personal information like:
- Social security numbers
- Income data
- Banking details
- Other financial and tax information
It’s not a good idea to play fast and loose with this information. Tax season identity theft and fraud have increased by 45% since the pandemic. Sending this sensitive data via unsecured channels makes you vulnerable. To protect yourself it’s best to avoid:
- Loosing track of files
- Weak or reused passwords
- Sending info via unsecured emails
The financial and emotional cost of a data breach or identity theft is steep. Many victims find that it can takes years to recover their footing. Incorporating data security as part of your tax prep process is a crucial step protecting your financial health.
Simple Steps You Can Take to Secure Your Financial Data
The good news is there are practical steps you can take to increase your financial data security. These practices don’t require a lot of technical know-how and can go a long way in keeping your personal information secure.
- Use Secure Cloud Storage. Using cloud storage with a secure password means you have an encrypted back up of your data. You can access your documents even if your device is lost or damaged, or your original documents are destroyed.
- Strengthen Passwords: Create unique, secure passwords for each of your financial accounts and avoid reusing passwords. A strong password is between 8-14 characters, contains a combination of upper and lowercase letters, numbers, and symbols. Do not use personal data like birth dates in your password. In the unfortunate event that your password is compromised, you can change the password on the affected account and have peace of mind that your other accounts (with their own unique passwords) remain safe.
- Enable Multi-Factor Authentication: Most secure financial accounts and file storage platforms offer multi-factor authentication (MFA). Simply put, MFA means you need more than just a password—like a code sent to your phone—to sign in, which makes your account much harder for others to access. This adds a powerful layer of protection against fraud and data theft.
Work with An Accounting Firm Committed to Client Security
In addition to taking personal steps to protect your financial data, it’s crucial to work with an accounting firm committed to your security and experience. At Neely’s, we’re dedicated to staying current on data security best practices to make your tax experience easy and safe.
That’s why we chose to implement TaxDome into our operations. TaxDome is our secure client platform that allows you to send your information quickly and safely. Here’s how it helps us keep your data safe:
- TaxDome offers encrypted document storage and sharing between you and your tax pro.
- You enjoy a secure client portal—no sending sensitive info over email.
- Your experience includes multi-factor authentication for added protection.
- You gain controlled access to financial documents so you always know who can see your information.
TaxDome also makes your tax-time experience even more seamless through its user-friendly features. When you work with Neely’s, you’ll enjoy:
- Centralized access to documents and messages.
- Faster, more organized communication.
- Reduced risk of lost paperwork or miscommunication.
- Peace of mind knowing sensitive information is protected.
Prepare for a Secure, Stress-Free Tax Season
Implementing smart data security practices and working with a trustworthy accounting firm is a must. Neely’s has been the local go-to source for safe, expert tax services in Roanoke since 2007. Choose a firm that prioritizes security, client experience, and peace of mind this tax season. Get in touch to learn more about how we can support you at tax time and beyond.