![]() Use Strong Passwords-For encrypted files, ensure that passwords are strong (i.e., do not make your password, ‘password’).See “Client Notification Requirements” in the sidebar. Encrypting data (assuming the encryption key is not stored with the device) or a password change on the cloud device if lost, are two approaches that will protect you from a security breach. Note: If a device is lost or stolen and you can demonstrate that no one can access the data, client notification is not required. This ensures that in the event an employee’s device is lost or stolen, access to sensitive files will not be granted to the individual who recovers the device. This extends security to files sitting out on devices owned by staff. Encrypt Folders on Local Computers-If employees have the freedom to sync firm files to personal mobile devices, make sure all files are encrypted. ![]() The following are a few syncing strategies to help mitigate file security issues down the road. Bottom line, as the guardian of clients’ financial documents, practitioners must establish policies for working with solutions that sync files automatically. If an employee in a firm has files synced to his or her devices, what is the process for protecting those files after an employee is terminated, quits, or leaves after seasonal work is complete? As file syncing has gained in popularity, many businesses have felt the pain of losing control. She also realized that she had no ability to wipe the files from the ex-staffer’s devices, and that meant office files could end up anywhere, in anyone’s hands. Once the employee was terminated, the firm owner realized that she had lost central control of her firm’s files. The firm adhered to a BYOD work environment, meaning the employee had synced business files directly to her personal laptop and iPad…and once synced, always synced! The employer had not considered the possible issues of a BYOD policy and the impact of syncing client files on these devices. Recently, an accounting firm owner reached out to explain a problem she discovered regarding syncing of sensitive client files, and was seeking some advice on how to handle it. To better understand the risks that come with syncing, it’s always best to provide a real-world peer example. What happens if the employee’s device is sold, lost, or stolen? The answer is that company documents go with it…falling into the hands of, well, who knows? A Real Life Example… The moment company files are synced to multiple devices, those files are subject to the personal security habits of that user or employee-regardless of whether an employee is working on their own device or one that was firm-issued. The core issue caused by syncing files to multiple devices is the loss of centralized control. ![]() It’s important to balance the value of syncing files with a firm’s business and compliance requirements. ![]() However, while file syncing offers immense value and many conveniences, it also creates its own set of issues-relative to security-that accountants need to consider in their business practice. ![]() Today’s on-the-move professionals demand it because it allows them to work from anywhere on their own local device and access and share files that have been synced to the cloud even when the Internet is not available. The transition from brick-and-mortar offices and employer-owned hardware to virtual locations and BYOD (Bring Your Own Device) policy has forever changed how firms operate-for better…and for worse.įile syncing is a here-to-stay solution. This is not exactly a shocking transformation given that we live in an on-demand world where it is common for professionals to work remotely and from a variety of devices-laptops, tablets, and smartphones. Over the past few years, the practice of syncing business files to personal devices has evolved from a simple function to a mission-critical solution, required for working outside of a traditional office environment. Simply put, the new norm is “full access to all my data from the device of my choosing.” Apps like Dropbox have had a transformative impact on the expectation for accessing digital content. Syncing files from a local computer or device to the cloud is a common business practice in today’s mobile-driven world-as common as the Internet, specialty coffee, the App Store, and all the other day-to-day “Can’t-Live-Withouts.” In fact, it is probably the best example of the consumerization of IT for the small business owner. ![]()
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