Cybersecurity and the Financial Impact It Can Have on Your Business
What Is Cybersecurity?
These days, you hear a great deal about cybersecurity attacks in the media. Tech companies, financial institutions, and small businesses are all equally vulnerable as targets of cyberattacks. The increase in the number of breaches has made the necessity for an effective cybersecurity plan more important than ever.
Cybersecurity measures are focused on protecting networks, programs, systems, and data from external attackers and the changes and destructive effects they can have. Numerico, PC, located in Livonia, Michigan, offers small business accounting services, tailored to your unique business needs.
Financial Impact Cybersecurity Attacks Can Have on Your Business
The financial impact that cybersecurity attacks have on your business is substantial. The theft of data results in costs for repair, as well as the fines and compensation your small business will owe.
Cyberattacks can cause financial loss for your business from:
- Theft or compromise of corporate data
- Theft of financial data, both of the company and the customers
- Theft of money from bank accounts or other financial information
- Loss of future business contracts
- Disruption of a transaction, especially online
A cybersecurity breach can also impact your business’s reputation, damaging the relationship of trust you have built with your customers. It can also affect your business relationships with suppliers, investors, and others who have a vested interest in your business.
Legally, your business is responsible for all of the personal data held by the company. Whether data is compromised accidentally or deliberately, your business may face regulatory sanctions and fines.
Protecting Customer Information
Data security means knowing what data you hold and how and where it is stored. Customer and employee information contained by your business needs to be protected. Electronic cybersecurity safeguards need to be current and in place to protect the data. Physical and procedural safeguards must also be put in place to guard files containing any personal information.
Why Is Cybersecurity Important?
Small businesses are not immune to cybersecurity attacks as criminals often perceived them as easy targets. A small business may not perceive a cybersecurity plan as a priority investment due to limited budgets and resources. Cybercriminals know this and are taking advantage of it.
Small businesses are training grounds where some cybercriminals can perfect their skills before moving on to more prominent companies. For others, small businesses are a lucrative target with minimal defenses they can target repeatedly.
Having a cybersecurity plan for your small business is crucial. One size does not fit all companies, so your cybersecurity plan needs to be specific to your business’ internet and security needs.
Numerico | Accountant Helping Small Businesses | Livonia, MI
Small businesses face so many challenges and having a knowledgeable, experienced accountant team on your side provides results and peace of mind.
Serving Livonia, MI, and the surrounding communities, including Ann Arbor, Canton, and Farmington Hills, Numerico specializes in helping small businesses with financial management. Whether your business needs help with small business tax planning, bookkeeping services for small businesses, or small business growth, our professionals can help. Contact us today.
