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.
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.
The FTC Safeguards Rule does not just apply to banks and CPA firms. Tax preparers, bookkeepers, financial advisors, mortgage brokers, and even auto dealers who arrange financing are all covered. If you handle consumer financial data in any capacity, you are subject to this rule.
What Does the Rule Require?
The updated rule requires covered businesses to develop, implement, and maintain a comprehensive 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.
Officers and designated individuals can be held personally liable for willful non-compliance with the FTC Safeguards Rule. This means personal fines and legal consequences beyond what the firm itself faces.
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.
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Steve Condit founded Simply IT to bring enterprise-grade IT management to small and mid-sized businesses across North Central Florida. With over 30 years of IT experience and a background in the US Marine Corps, Steve built Simply IT around the principle that local businesses deserve the same quality of technology partnership that large companies take for granted — without long-term contracts or national call center support.
