Insightful Accountant | Blog

Why Managed Security is Essential in 2026

Written by Dr. Sangeeta Chhabra | Dec 12, 2025 5:30:00 AM

Accounting firms today largely operate in a digital ecosystem that is always connected, always expanding, and always under threat. And as we turn the page to another year, cyber risks are likely to get more frequent and sophisticated, thereby increasing the case for managed security services.

A recent study by the University of Maryland indicated that a cyberattack occurs every 39 seconds. This is the new operating environment for accountants, were every login, every uploaded document, and every client interaction carries risk. What’s more is that the rapid shift to digital work has outpaced the security capabilities of most firms, leaving them exposed in ways that traditional tools simply cannot address.

AI-Driven Cyberattacks

While the more easily recognizable phishing attempts are still around, businesses now have to deal with the rise in attacks driven by artificial intelligence that are able to conduct targeted, credible, and deeply personalized attacks that blend seamlessly into daily workflows. AI is even being used to generate convincing impersonations, recreate executive voices for fraudulent approvals, and embed malicious code inside routine spreadsheets and PDFs.

A recent PwC report highlights how AI is fueling an entirely new class of phishing and impersonation attacks that are harder to detect and nearly impossible to identify with basic security tools. Needless to say, for accounting firms handling highly sensitive financial and personal information, this evolution represents a direct challenge to the profession’s ability to safeguard client trust.

Compliance is Non-Negotiable

In addition to the rise of more sophisticated cyberattacks, the regulatory environment is also changing rapidly, with data protection and data localization laws becoming more stringent. For example, the IRS requires every tax professional to maintain a Written Information Security Plan (WISP) under the FTC Safeguards Rule to protect client data, reduce cybersecurity risks, and ensure compliance during audits and reviews.

Many accounting firms still struggle to adopt structured cybersecurity frameworks, leaving them vulnerable not only to cyberattacks but also to being penalized for non-compliance.

Many accounting practices also still lack formal cybersecurity frameworks. As regulations evolve, 2026 may bring new expectations from clients, auditors, and regulators who will treat strong cybersecurity as a baseline requirement, not a value-added service.

Clients Expect More Than Accuracy

In turning our eye to client expectations, accountants need to ask themselves how prepared they are to answer client questions about their data and exchange of information. Moreover, they expect their accountant to articulate:

  • what data is being collected
  • why it is required
  • how long it will be stored
  • who has authorized access
  • how it is encrypted
  • what happens if an incident occurs

Accounting clients today are even more savvy than they were five years ago. They ask sharper questions, read privacy policies and written information security plans. Firms with inadequate responses risk losing clients to competition.

Why Managed Security is Essential

Given all of the aforementioned, the case for managed security is now clear. Antivirus programs, firewalls, and periodic updates simply do not adequately protect a firm from AI-driven attacks, credential theft, or network intrusions.

Managed security introduces professional, structured, and continuous protection that internal teams cannot replicate. Instead of attempting to build an expensive and hard-to-maintain in-house security unit, firms partner with Managed Security Service Providers (MSSPs) who secure the entire IT environment at all times.

Here just are some key advantages that managed security brings to accounting professionals:

  • Continuous Monitoring
  • Active Vulnerability and Patch Management
  • Strengthening Internal Governance
  • Reducing Human Error

On this last point, it should be noted that more than 80 percent of breaches involve human error. Managed security services help reduce this risk by continuously monitoring behavior, detecting anomalies, and providing tools that limit exposure even when mistakes occur. The end goal is to create a security culture where the system supports the user, not the other way around.

Conclusion

Accounting firms that adopt managed security gain more than protection, they gain credibility. They demonstrate to clients, regulators, and partners that they take data stewardship seriously. In an industry built on trust, this is a competitive advantage.

A secure firm wins more business, retains clients more effectively, and navigates regulatory requirements with confidence. Managed security becomes a pillar for growth, not just a safeguard.

The message for 2026 is clear that managed security is no longer optional; it is foundational to the future of accounting. Firms that prioritize it will operate with greater resilience, stronger client trust, and a more stable path to long-term success.