The FTC Safeguards Rule Applies to Your Ocala CPA Firm — Here Is What You Need

If you run an accounting firm, tax preparation business, or financial advisory practice in Ocala or anywhere in North Central Florida, the FTC Safeguards Rule applies to you. The updated rule, which took full effect in June 2023, significantly expanded the cybersecurity requirements for financial institutions — and the definition of financial institution is much broader than most people expect.

The FTC Safeguards Rule now requires cybersecurity programs for accounting firms and financial service providers across Florida.

Who Does the Safeguards Rule Apply To?

The FTC Safeguards Rule applies to any business that is "significantly engaged" in providing financial products or services. That includes tax preparation firms, certified public accountants, bookkeeping services, financial advisors, mortgage brokers, auto dealers that arrange financing, and any business that handles consumer financial information. If your Ocala CPA firm prepares tax returns or manages client financial records, you are covered — period.

What Does the Rule Require?

The updated rule requires covered businesses to develop, implement, and maintain a Written Information Security Plan — commonly called a WISP. These are enforceable requirements with real consequences for non-compliance.

What Are the Penalties?

The FTC can impose penalties of up to $100,000 per violation, plus $10,000 per day for continuing violations. But financial penalties are only part of the picture. A data breach at an accounting firm that lacks required safeguards can result in FTC enforcement actions, state attorney general investigations, client lawsuits, loss of professional licenses, and reputational damage that can take years to recover from.

What Most Ocala CPA Firms Are Missing

In our experience working with accounting firms across North Central Florida, the most common gaps are the lack of a formal Written Information Security Plan, no documented risk assessment, inconsistent or absent multi-factor authentication, no encryption on laptops or portable devices, no security awareness training program, and no incident response plan. Many firms have some security measures in place but lack the documentation and formal program structure that the rule requires.

How to Get Compliant

Getting compliant with the FTC Safeguards Rule does not have to be overwhelming. Here is the process we follow with every accounting firm we work with:

Simply IT has helped CPA firms and financial services businesses across Ocala and North Central Florida achieve full compliance with the FTC Safeguards Rule.