For small CPA firms, the thought of complying with NYDFS cybersecurity regulations can feel overwhelming. The regulations seem designed for big firms with massive IT departments, not small businesses that rely on lean operations. But here’s the truth: compliance isn’t optional, and small CPA firms are just as vulnerable—if not more so—than larger firms. The good news? Getting started isn’t as complicated or expensive as you think.
Why Small CPA Firms Struggle With Compliance
At Guardicloud, we’ve seen it time and again—small firms feel lost when it comes to NYDFS requirements. Many don’t know where to start. They assume compliance means a hefty investment in IT infrastructure or that their size exempts them from serious penalties. Worse, they believe they’re already covered because they’ve hired an IT guy or outsourced break/fix services.
Here’s the reality: NYDFS applies to everyone in the financial industry, regardless of size. If you’re reachable, you’re breachable. Small businesses are actually the number one target for cybercriminals because they tend to have weaker defenses. The law isn’t new either—it’s been in place for over five years. Waiting is no longer an option.
The good news is that compliance doesn’t have to mean expensive add-ons or being nickel-and-dimed. It’s about finding the right provider who will guide you step by step with your best interests in mind.
Step 1: Conduct a Comprehensive Risk Assessment
The first and most crucial step is an annual risk assessment. Without this, you’re flying blind.
Why is it important? Because you can’t fix what you don’t understand. A risk assessment involves reviewing every asset, procedure, and weak link in your organization. It identifies vulnerabilities and gaps in protection and compliance. It’s not just a best practice—it’s required under NYDFS legislation.
At Guardicloud, we help firms take this step without overwhelming them. There’s no pressure to commit to anything beyond the assessment. You can keep your existing IT provider or shop around afterward if you prefer.
Common Vulnerabilities Found During Assessments
When we conduct assessments, these are the most common issues we see in small CPA firms:
- Basic or nonexistent antivirus solutions
- Outdated machines or systems running unsupported software
- Lack of proper firewalls or outdated firewall configurations
- Relying on break/fix IT services or large, inattentive IT providers
- No formal cybersecurity policies or incident response plans
These gaps leave small firms exposed to ransomware, data theft, and compliance violations. The good news? Once identified, they can be addressed systematically with manageable solutions.
What Can You Do Today to Start Moving Toward Compliance?
If you’re unsure where to begin, follow these actionable steps:
- Find a reputable MSP or IT provider with a strong focus on security.
Not all providers are created equal. Look for one that understands regulated industries like yours and can deliver full solutions—not just piecemeal add-ons. - Ask for referrals.
Talk to other CPA firms and financial service providers to see if they’re happy with their IT or cybersecurity partner. - Leverage free resources.
There are plenty of free cybersecurity and compliance guides available online. NYDFS itself offers guidelines, and companies like ours are always happy to serve as a resource.
Ready to Take the First Step?
A risk assessment is the best way to understand your current state and chart a path forward. Whether you stick with your current provider or choose to work with someone new, the key is taking action now—not later. Cyberattacks aren’t waiting, and compliance is no longer optional.
If you’d like to discuss how Guardicloud can help with your assessment or compliance needs, feel free to reach out. We’re always happy to chat, no strings attached.