According to a Google Survey we conducted in October 2015, more than 70% replied ‘No’ or ‘Not Sure’, when asked “Are you comfortable with how your accountant sends and receives your sensitive financial documents over the Internet?”
These results are statistically significant, and suggest accountants need to reassure their clients that they have the proper controls in place to protect their financial data as they collaborate with them on tax preparation or share their information with other relevant organizations outside of their firm like banks, advisors, attorneys, real estate professionals and financial planners.
Its important to understand that traditional email and password protected files are not always safe. Best practices today include more secure platforms that offer better functionality for the professional and the client. Professionals need to research all the capabilities before selecting any platform and not simply choose a popular ‘cloud-based’ storage solution without consideration. Though popular services offer easy access from any device, people generally confuse convenience with security. Who wants their tax returns on their mobile phone, leaving data potentially vulnerable if the device is lost or stolen. Yikes!