As the owner of an accounting practice, your clients trust you with their most sensitive financial data. But with great responsibility comes significant risk – data loss can devastate your operations, damage your reputation, and even threaten your firm’s survival. Understanding the causes of data loss and how to mitigate those risks is key to keeping your business secure and resilient.
The Leading Causes of Data Loss in Accounting Firms
Accounting practices face unique data risks due to the volume and sensitivity of the information they handle. The most common causes include:
Human Error: Mistakes like accidental file deletion, overwriting data, or sending sensitive information to the wrong recipient are the top cause of data loss, accounting for up to 88% of incidents. Even well-trained staff can make errors, especially under tight deadlines or with manual data entry.
Cybersecurity Breaches: Accounting firms are prime targets for hackers due to the financial data they store. Cyberattacks can lead to data theft, ransomware lockouts, and costly breaches that expose client information and trigger compliance headaches.
Hardware or Software Failure: Servers, hard drives, and other devices can fail unexpectedly, causing sudden data loss if backups aren’t in place.
Natural Disasters: Fires, floods, or power outages can physically destroy data storage systems, leading to permanent loss unless offsite or cloud backups exist.
Poor Data Management: Outdated or poorly designed systems increase the risk of accidental loss, corruption, or unauthorized access.
The consequences of data loss extend beyond immediate disruption. Accounting firms may face regulatory fines, expensive lawsuits, and – perhaps most damaging – loss of client trust and reputation.
How to Mitigate Data Loss Risks
Partnering with a trusted MSP like Farmhouse Networking provides a multi-layered approach to data protection, tailored to the unique needs of accounting practices:
Comprehensive Backups and Recovery: Farmhouse Networking implements robust, automated backup systems – storing data both onsite and in the cloud – ensuring your data is recoverable even if disaster strikes. Backups are regularly tested and monitored for reliability, so you can restore critical information quickly and minimize downtime.
Advanced Security and Encryption: Sensitive client data is protected with industry-standard encryption, both at rest and in transit. Farmhouse Networking also deploys SPAM filtering and anti-phishing tools to block malicious emails, a common entry point for cyberattacks.
Disaster Recovery and Business Continuity Planning: Farmhouse Networking works with your firm to develop and test disaster recovery plans, ensuring your operations can continue with minimal interruption after an incident.
Employee Training and Access Controls: Since human error is a leading cause of data loss, Farmhouse Networking provides security awareness training for your staff and enforces strict access controls, so only authorized personnel can access sensitive information.
Compliance and Audit Support: MSPs like Farmhouse Networking help ensure your IT systems are compliant with industry regulations, reducing the risk of fines and supporting audit readiness.
Ongoing Monitoring and Support: With 24/7 monitoring and proactive maintenance, Farmhouse Networking detects and resolves issues before they escalate, keeping your systems secure and your team focused on serving clients.
Don’t Leave Your Data and Your Reputation at Risk
Data loss is not a matter of if, but when. The right MSP partner can mean the difference between a minor hiccup and a catastrophic event. Farmhouse Networking specializes in protecting accounting firms like yours with proven solutions for backup, security, compliance, and business continuity.
Ready to safeguard your practice?
Contact Farmhouse Networking today for a free consultation and discover how we can keep your data and your business secure, resilient, and ready for whatever comes next.
Has your business ever experienced a technology crisis that could have been easily prevented? Learn from the cautionary tale of a non-managed client who recently faced a major setback due to neglected IT infrastructure. This compelling story underscores the importance of proactive IT management and the need for robust backup solutions.
The Story: A Cautionary Tale
Neglected IT Infrastructure: After 5 years of radio silence, a panicked non-managed client reached out to us when their aging computer, hosting their crucial order processing system, malfunctioned.
DIY Mishap: Attempting to fix the issue themselves, the client inadvertently worsened the situation by installing the wrong part, leading to a cascade of problems.
Costly Consequences: The subsequent visit to a local repair shop and improper part replacement led to the corruption of critical files, including the Windows Operating System and the database containing vital client data.
Backup Oversight: The client’s failure to maintain updated database backups exacerbated the crisis, with the only available backup being approximately 5 years old.
The Solution: Managed IT Services
Proactive Maintenance: With managed IT services, critical components like the aged computer would have been promptly replaced before catastrophic failure, averting the entire crisis.
Remote Support: Swift remote intervention by a managed IT provider would have prevented the corruption of the operating system and database, substantially reducing the overall cost of the incident.
Comprehensive Backup Strategy: Every business should prioritize regular, imaged-based backups to safeguard their crucial data, ensuring seamless restoration in the event of a disaster.
Expert Guidance: Embracing managed IT services equips businesses with expert recommendations and proactive measures to avoid potentially devastating technology pitfalls.
Take the Right Step for Your Business!
Don’t let your business fall victim to preventable IT disasters. Embrace the proactive protection and expert guidance offered by a managed IT service provider to ensure uninterrupted business operations.
It’s that time of year, business owners need to start thinking about tax deductions and ways to maximize profit protection. One area not to be overlooked is IT expenses since IT plays a crucial role in every business. The good news is that many IT expenses can be deducted from your taxes. From hardware and software purchases to cybersecurity measures and cloud services, there are several essential IT tax deductions that can help you lower your tax bill and keep more money in your profit column.
IT Tax Deductions for Business Owners
As a business owner, it is crucial to recognize the importance of taking advantage of IT tax deductions before the end of the year. These deductions can significantly impact your bottom line. By deducting IT expenses, you are not only reducing your tax liability but also creating funds to re-invest in the growth of your business and upgrading to the latest technology, which positions your business for long-term success.
IT Tax Deductions to Maximize Your Savings
Take advantage of these IT tax deductions to maximize their profit savings:
Software and Hardware Expenses: Deducting the cost of industry specific software and hardware purchases is an excellent way to save on taxes. Whether you invested in new computer systems or upgraded your existing software, remember to include these expenses in your deductions as capital expenditures. Profit savings can be compounded by taking the amount saved through IT tax deductions and spending it on further software and hardware purchases.
Cybersecurity Measures: With the increasing threat of cyberattacks, investing in cybersecurity measures is crucial. These expenses can also be deducted from your taxes. From firewalls to antivirus software, make sure to claim any cybersecurity investments you have made throughout the year.
Cloud Services: Many businesses have moved to using cloud services for their storage and daily operations. These operational expenses are also eligible for tax deductions. Whether you use cloud computing, backup services, or cloud-based software, remember to include these costs in your deductions.
By focusing on these essential IT tax deductions, you will minimize your tax liability and position your business for success in the coming year.
Consulting with a Certified Public Accountant
While it’s important to have a basic understanding of the IT tax deductions for your business, it is equally important to consult with a certified public accountant. A knowledgeable CPA can provide you with personalized financial advice and guidance based on your company’s unique situation.
Tax laws and regulations are constantly changing, and it can be challenging to keep up with all the updates. By working closely with a CPA, you can stay updated on the latest deductions and strategies to maximize your savings while staying compliant with the law. They can review your financial records, identify missed deductions, and help you make informed decisions that positively impact your bottom line.
Remember, seeking advice from a tax professional will not only help you optimize your profit savings but also give you peace of mind knowing that your tax returns are accurate and in line with the regulations.
Keeping Detailed Records
One essential practice for maximizing your IT tax deductions is keeping detailed records of your IT expenses. Maintaining accurate and organized records throughout the year can help you claim all eligible deductions at tax time.
Start by creating a system to track and categorize your IT expenses. This can include items like software and hardware purchases, IT services, website development costs, and data storage fees. Keep receipts, invoices, and any supporting documents for each expense. Having detailed records allows you to easily identify and calculate eligible deductions. It also provides evidence and documentation if you ever face an audit or need to justify your deductions to the IRS.
Consider using accounting software or cloud-based platforms to streamline the record-keeping process. These tools can help you track expenses, generate reports, and ensure accuracy in your financial records. By maintaining detailed records of your IT expenses, you not only ensure that you are taking full advantage of available deductions, but you also create a solid foundation for your overall tax strategy.
Utilizing Section 179 Deductions
Section 179 of the tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. By utilizing Section 179, you can deduct the entire cost of eligible technology investments in the year they are purchased. This deduction can help reduce your overall tax liability, allowing you to maximize your profit savings.
To qualify for Section 179 deductions, the equipment or software must be used for business purposes more than 50% of the time. This deduction is particularly beneficial for businesses investing in technology upgrades or replacements, as it encourages the adoption of new and improved IT systems. Be sure to consult with a tax professional to determine the eligibility of your IT investments for Section 179 deductions and to ensure you are maximizing this deduction for your business.
Bonus Depreciation for IT Purchases
Business owners can also benefit from bonus depreciation for their IT purchases. Bonus depreciation allows businesses to deduct a percentage of the cost of qualifying assets in the year they are placed in service. Under the Tax Cuts and Jobs Act, businesses can take an 80% bonus depreciation deduction for qualified property acquired and placed into service in 2023, then depreciate the remaining 20% over the course of several years.
To qualify for bonus depreciation, the property must have a recovery period of 20 years or less and be purchased for business use. This deduction is particularly valuable for businesses that are investing in new IT equipment or upgrading their existing technology infrastructure.
By timing your IT purchases strategically, you can take full advantage of bonus depreciation and significantly reduce your tax liability. However, it’s important to note that bonus depreciation is subject to change based on tax laws and regulations, so consulting with a CPA is crucial to ensure compliance and maximize your savings.
Research and Development Tax Credit
While bonus depreciation and Section 179 deductions are great for maximizing your tax deductions when it comes to IT purchases, there is another valuable tax credit that often goes unnoticed – the Research and Development (R&D) tax credit.
The R&D tax credit is designed to incentivize businesses to invest in innovation and development activities. Many business owners mistakenly believe that this credit is only applicable to scientific or technological research. However, the R&D tax credit is much broader than that and can apply to a wide range of industries and activities.
To make the most of the R&D tax credit, it’s important to keep detailed records of your qualifying activities and expenses. Consult with a tax professional who specializes in this area to ensure that you are maximizing your tax savings while staying compliant with the IRS requirements.
To make best use of your IT tax deduction spending, contact us to discuss new purchases and upgrades.
Managing IT can be a daunting task, especially for businesses that lack dedicated IT personnel or the expertise to handle today’s complex technology. In recent years, more and more organizations have recognized the benefits of outsourcing their IT management to Managed Service Providers (MSPs).
What is an MSP?
A Managed Service Provider, or MSP, is a company that offers a range of IT services to businesses. These services can include network monitoring, infrastructure management, data backup, cybersecurity, and more. By partnering with an MSP, businesses can offload their IT responsibilities to professionals with deep expertise and industry-best practices.
The Challenges of Self-Managed IT
Self-managing your IT can be a significant challenge. Here are some of the common pain points that organizations face:
Lack of Expertise: IT is a complex and ever-evolving field. Keeping up with the latest technologies, security threats, and best practices can be overwhelming, especially for businesses without dedicated IT staff.
Resource Constraints: Managing IT requires time, manpower, and financial resources. Small and medium-sized businesses often struggle to allocate these resources effectively, leading to inefficiencies, downtime, and security vulnerabilities.
Limited Scalability: Growing businesses often find it difficult to scale their IT infrastructure to meet increased demand. Self-managing your IT environment may require significant investments in hardware, software, and additional staff, which can strain budgets and hinder growth.
Cybersecurity Risks: Data breaches and cyber-attacks are on the rise. Without proper security measures in place, businesses face significant financial and reputational risks. Implementing and maintaining robust cybersecurity protocols can be challenging for organizations without the necessary expertise.
The Benefits of MSP-Managed IT
Switching to an MSP-managed IT environment offers several benefits:
Expertise and Support: MSPs have a team of experienced professionals who specialize in different aspects of IT management. They stay up-to-date with the latest industry trends and best practices, providing businesses with access to a breadth of knowledge and expertise.
Proactive Monitoring and Maintenance: MSPs utilize advanced tools and technologies to monitor your IT infrastructure 24/7. They identify potential issues before they become critical, minimizing downtime and ensuring smooth operations.
Scalability and Flexibility: MSPs provide scalable solutions tailored to your business needs. Whether you’re experiencing rapid growth or need to downsize, an MSP can quickly adapt your IT infrastructure to meet changing requirements without additional investments or resources.
Enhanced Security: MSPs employ robust security measures to protect your systems, networks, and data from cyber threats. They implement industry-standard security practices, conduct regular security audits, and ensure compliance with data protection regulations.
Cost Savings: By outsourcing IT management to an MSP, businesses can reduce the overhead costs associated with maintaining an in-house IT department. MSPs work on a subscription-based model, allowing organizations to pay for the services they need, when they need them.
Strategic Planning: MSPs can act as your virtual chief information officer providing project planning services that keep IT spend spread across the years to make the IT budget easier to manage.
Consider making the switch to an MSP today and unlock the benefits of professional IT management, contact us to get started.
In the ever-evolving world of IT support, two strategic approaches have emerged to address the needs of businesses – vCIO (Virtual Chief Information Officer) services and break-fix services. Each of these approaches has its own merits and drawbacks, making it crucial for businesses to carefully consider which option best aligns with their goals and IT requirements. So, let’s dive into the comparison between vCIO services and break-fix services and find out which one takes the crown!
vCIO Services: Unleashing the Power of Proactive IT Management
The vCIO model offers businesses a cost-effective and strategic solution to IT management, delivering benefits far beyond simple problem-solving. Here’s a breakdown of what vCIO services bring to the table:
Strategic Technology Planning: A vCIO provides a long-term roadmap for your IT infrastructure, aligning it with your business objectives. They assess your current technology landscape, analyze potential risks, and develop a comprehensive IT strategy to ensure your technology infrastructure drives success.
Proactive IT Monitoring and Management: By constantly monitoring your systems, a vCIO can detect and address issues before they turn into full-blown disasters. They implement proactive measures, such as 24/7 system monitoring, patch management, and security audits to keep your IT environment optimized and secure.
IT Budgeting and Procurement: A vCIO helps you streamline your IT budget by aligning your investment with your business goals. They provide insights into cost-effective technology solutions, negotiate contracts with vendors, and manage IT procurement to help you make informed decisions while optimizing your spending.
Technology Vendor Management: Collaborating with multiple technology vendors can be time-consuming and complex. A vCIO acts as a single point of contact for all your technology vendors, managing relationships and ensuring smooth coordination between various stakeholders.
Break-Fix Services: The Traditional Firefighter Approach
Break-fix services have long been the go-to approach for businesses seeking IT support on an as-needed basis. Here’s a closer look at what break-fix services bring to the table:
Issue-Specific Support: Break-fix services are designed to address specific IT issues as and when they arise. This approach involves fixing problems after they occur, reacting to incidents rather than proactively managing your systems.
Limited Scope of Support: Break-fix services typically focus solely on resolving immediate technical issues. While they can provide quick fixes, they do not offer strategic planning or ongoing support to help prevent future issues or optimize your IT infrastructure.
Variable Costs: Break-fix service costs can be unpredictable, as you are billed per incident or hourly basis. This makes budgeting and financial planning more challenging, especially if you encounter frequent or recurring IT issues.
Less Focus on Prevention: With break-fix services, the emphasis is on remedying existing problems, leaving behind the potential for other underlying issues to remain undetected, ultimately leading to more costly and time-consuming problems down the line.
The Verdict: vCIO Takes the Throne!
While break-fix services may have their place in certain scenarios, vCIO services offer a more comprehensive approach to IT management, aligning your technology with your business goals and providing ongoing support. The proactive nature, strategic planning, and cost optimization provided by vCIO services make it the winning solution for businesses looking to stay ahead of the ever-changing technology landscape. So, without a doubt, the crown firmly sits on the head of vCIO services!
If your company is tired of just calling your IT service company when things are broken, then contact us for vCIO services.
Small and medium-sized businesses (SMBs) face numerous challenges when it comes to managing their IT. Limited resources (both human and money), lack of expertise, and the need to focus on core business operations often make it difficult for SMBs to understand and manage technology needs. This is where Managed Service Providers (MSPs) come in. In this blog article, we will explore the reasons why SMBs should consider partnering with MSPs to enhance their IT capabilities and drive business growth.
Cost-Effective IT Solutions:
One of the primary reasons why SMBs need MSPs is the cost-effectiveness they offer. By outsourcing their IT needs to MSPs, SMBs can avoid the high costs associated with hiring and training an in-house IT team. MSPs provide a range of services, including network monitoring, data backup and recovery, cybersecurity, and software updates, all at a predictable monthly cost. This allows SMBs to allocate their resources more efficiently and focus on their core business.
Access to Expertise and Advanced Technology:
MSPs are experts in providing IT services and have a team of highly skilled professionals with expertise in variety of technology. By partnering with MSPs, SMBs gain access to the depth of knowledge and experience from IT experts who can handle complex tasks and provide strategic guidance. Additionally, MSPs stay up-to-date with the latest technology trends and can recommend and implement solutions that can help SMBs stay competitive in the market and safe from hackers.
Proactive IT Support and Maintenance:
MSPs offer proactive IT support and maintenance, which is crucial for SMBs. They monitor networks, identify potential issues, and take preventive measures to avoid downtime and disruptions. MSPs also provide regular software updates, security patches, and system maintenance, ensuring that SMBs’ IT remains secure and up-to-date. This proactive approach helps SMBs minimize the risk of costly IT failures and ensures smooth business operations.
Enhanced Data Security:
Data breaches and cyberattacks pose a significant threat to SMBs. MSPs play a vital role in safeguarding SMBs’ sensitive data and protecting them from potential security breaches. They implement robust cybersecurity measures, such as firewalls, antivirus software, and encryption, to ensure data confidentiality and integrity. MSPs can also conduct regular security audits and vulnerability assessments to identify and address any potential weaknesses in the IT infrastructure.
Scalability and Flexibility:
As SMBs grow, their IT needs evolve. MSPs offer scalable solutions that can adapt to changing business requirements. Whether it’s adding new users, expanding storage capacity, or integrating new software, MSPs can quickly and efficiently accommodate these changes. This scalability and flexibility allow SMBs to focus on their growth without worrying about the limitations of their IT infrastructure.
If your company could use the cost-effective solutions, access to expertise, proactive support, enhanced data security, and scalability that come from using a MSP, then contact us for assistance.
Power outages are a common occurrence in our area. While they may seem like a minor inconvenience, they can actually have a significant impact on your computer hardware. In this article, we will explore the negative effects of repeated power outages on computer hardware.
Hard Drive Failure
One of the most common negative effects of power outages on computer hardware is hard drive failure. When the power goes out, it can cause the hard drive to stop spinning abruptly. This sudden stop can cause the read/write head to crash into the disk platter, resulting in physical damage to the hard drive. In some cases, the hard drive may become completely unusable, leading to data loss.
Data Corruption
Power outages can also lead to data corruption. When the power goes out, any unsaved data in your computer’s memory is lost. This can cause files to become corrupted or damaged. In some cases, the entire operating system may become corrupted, making it impossible to boot up your computer.
Power Supply Damage
Finally, power outages can cause damage to your computer’s power supply. When the power goes out, it can cause a surge when the power comes back on. This surge can overload your computer’s power supply, causing it to fail. In some cases, the power supply may even catch fire, leading to a potentially dangerous situation.
Conclusion
In conclusion, power outages can have a significant negative impact on your computer hardware. From hard drive failure to data corruption, and power supply damage, there are many potential consequences of repeated power outages. To protect your computer from these negative effects, it’s important to invest in a high-quality uninterruptible power supply (UPS). These devices can help protect your computer from power surges and other electrical disturbances, ensuring that your hardware remains safe and functional.
If your company is not protecting its computers from the damaging effects of power outages , then contact us for assistance.
This is the second in a series about the concept of Zero Trust, which means in the IT sense that you trust nothing and always verify everything surrounding and connected to your network. Today’s discussion will be on the vendors you purchase network equipment from.
Trusted Vendors
Trusted vendors are those who supply workstations, servers, routers, switches, power protection, software, and anything else connected to your network. Here are some questions that you should be asking yourself:
Do you know who makes your network equipment, servers, computers, and software?
Do you know the way to contact their support and have current account access information?
Do you have current warranties / support contracts on hardware and software?
Is the hardware able to perform at the level needed?
Are you purchasing software from those who meets industry standards?
If a subscription, how much are you paying and are you on the correct plan for your needs?
When is the last time you upgraded your software and hardware?
Have you budgeted for the next upgrade?
Take time to think about these questions and decide where changes can be made to better protect your IT investments, or contact us to do the thinking for you.
This is the first in a series about the concept of Zero Trust, which means in the IT sense that you trust nothing and always verify everything surrounding and connected to your network. Today’s discussion will be on the physical security surrounding your network.
Physical Security
Physical security can include the locks on the doors, where things are placed, and how they are protected from the unpredictability of the environment. Here are some questions that you should be asking yourself:
Do you know where your network equipment is located?
Is the server / network in a separate area from where work is done?
Is this separate area behind a locked door?
Is the equipment in a locked rack or cabinet?
Is there a separate air conditioning zone for this area (servers like it cold)?
Is there a separate alarm zone for this equipment?
Who has the codes?
Is there a security camera watching this area (we don’t install these)?
How long is the recording for?
Who has access to the recordings?
Are computers located in areas where customers can physically touch them?
Are unused USB ports on the computer turned off or locked?
Are all systems protected by battery backup devices?
Are all systems off the floor in case of a flood?
Take time to think about these questions and decide where changes can be made to better protect your IT investments, or contact us to do the thinking for you.
It seems lately that the power company in the area has not been able to offer consistent service power to the city. This has left many businesses down without the technology they need to operate properly. These power outages cause data loss and damage computer components.
My own unexpected outage
Once upon a time, about two weeks ago, the unexpected happened at our offices. A semi-truck carrying a large backhoe on a trailer drove between two buildings in the area. The landlord had wired power between buildings and the truck driver did not lower the arm of the backhoe low enough. Sure enough the wire was snagged by the backhoe’s arm and pulled from the building. Needless to say the power was out to that part of the building until the landlord took care of the matter.
What can be done?
Farmhouse Networking recommends that all business workstations, servers, and networking equipment be protected by an uninterruptible power source aka UPS or battery backup. When the power goes out the right size battery backup will keeps things running for about 15-30 minutes to allow the last touches to be added to whatever was being worked on and things to be shutdown gracefully.
And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with others. As the Scriptures say,
“They share freely and give generously to the poor. Their good deeds will be remembered forever.”
For God is the one who provides seed for the farmer and then bread to eat. In the same way, he will provide and increase your resources and then produce a great harvest of generosity in you. - 2 Corinthians 9:8-10
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