Key Takeaways
 

• Create a written data protection policy. Every employee should know the rules for handling sensitive data.
   
• Back up data regularly with secure cloud services or encrypted physical backups.
   
• Encrypt everything so stolen data is useless to hackers.
   
• Use secure software. Only work with vendors who provide compliance and threat-detection tools.

“I don’t need to worry about cyber threats – my business is too small to interest hackers.”

Forgive me, but the numbers say otherwise: 75% of small businesses experienced at least one cyber attack in the past year. 

And 60% of small businesses that suffer a cyber attack go out of business within 6 months.

You cannot afford to ignore this.

So, with this urgency in mind, let’s narrow in on the most important cybersecurity measures for small businesses to focus on.

 

Which cybersecurity measures for small businesses should I focus on first?

Protecting your data.

9 out of 10 attacks on small businesses involve data or credential theft.

You need a joint effort of processes, technology, and policies designed to safeguard your company’s information.

Even one incident can bring crippling costs: remediation, legal liability, customer churn, and regulatory penalties. And as an accountant, I’m no stranger to the ugly downstream impact in my clients’ businesses — lost client relationships and months of cleanup work.
 

How do I protect my small business’s data?

I recommend a five-fold data protection approach:

1. Develop an official data protection policy. Your policy defines how your team manages, protects, and recovers data across all systems.

It should include:

• Rules for file permissions and data access levels
   
• Procedures for securing devices and Wi-Fi networks
   
• Steps for data backup and disaster recovery
   
• Standards for handling sensitive customer and employee data
   
• Protocols for incident reporting and response

2. Data backups. If your system gets locked by ransomware or crashes unexpectedly, could you recover your files tomorrow?

Without proper backups, most small businesses can’t.

Best practices here are to back up all critical data daily (or more frequently for high-traffic operations), and store backups in two locations: one cloud-based and one offline (air-gapped). 

Also, make sure to test your backup restoration process regularly. Don’t just assume it works until you try.

Cloud-based systems are popular because they provide redundancy (your data lives in multiple secure data centers). Many cloud providers also handle encryption and compliance for you.

3. Encrypt your data. Encryption is the digital equivalent of locking your filing cabinet. Even if attackers do break in, encryption can keep them from exploiting what they find.

Make sure:

• All laptops, external drives, and cloud systems use AES-256 encryption or equivalent.
   
• Emails with sensitive data are sent using encrypted portals (never plain attachments).
   
• You use multi-factor authentication (MFA) for access to accounting, banking, and payroll systems.
   

4. Monitor and report activity. Continuous data monitoring helps you catch unusual patterns. Like a login from an odd location, large file transfers, or unauthorized access attempts, for instance.

Affordable tools can provide real-time activity logging, automated alerts for suspicious behavior, and regular security reports for management or auditors.

So you can respond before small issues become catastrophic.

5. Use secure software. Before you choose accounting platforms, client portals, or CRM systems, dig into their security certifications and compliance features.

You’re looking for:

• Built-in encryption and MFA
   
• Data loss prevention tools
   
• Integration with your other security systems
   
• Compliance with frameworks like SOC 2, GDPR, or CCPA

 

FAQs

“Why would a hacker even care about my small business?”

Because you have what they want: customer data, financial details, payroll records, or even your EIN and business banking info. Hackers often see small businesses as “easy targets” because owners are busy and security budgets are small.

“What’s the most common way small businesses get hacked?”

Phishing scams are the number-one entry point. One employee clicks a fake invoice or “bank alert” link, and suddenly malware is inside your system. That’s why a few minutes of staff training each quarter can save you lots of cleanup later.

“How often should I back up my data?”

At least once a day, and automatically if you can. Use both a cloud-based backup and one offline (like an external hard drive that isn’t constantly connected to the internet). 

“Do I really need to pay for cyber insurance?”

If you handle client or payment data of any kind, it’s worth considering. The right policy can cover breach response, data recovery, and even legal costs. 

“What should I do if I think my business has been hacked?”

Disconnect the affected computers from the network, call your IT provider right away, and document everything. If any client information may have been exposed, you’ll need to notify them promptly (and in some cases, you’re legally required to).

“Is the cloud actually safer than keeping files on my computer?”

In many cases, yes. But only if you’re using reputable cloud providers with built-in encryption and two-factor authentication. You’ll want to manage access carefully and never reuse passwords.

“How can I make sure my employees don’t accidentally cause a cybersecurity breach?”

The best approach is ongoing awareness. Teach your team to be skeptical of links and attachments, use strong passwords, and report anything suspicious immediately.

 

A final word

YOUR small business – regardless of size or industry – has data in need of protecting. 

So take these steps seriously. Review them with your team. 

And while I may not be your IT technician, I am here to help you build smarter systems for your business. If reading this has you realizing that yours could use a little cleanup, then grab a time on my schedule for a business-systems-tightening session:

calendly.com/eco-tax-free-consultation/meeting