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The last two weeks of December are the calm before the storm for accounting firms. Tax season starts in weeks, and once January hits, there is no time for IT projects, security reviews, or “we will get to it later.” Here is the five-item checklist to close out the year right.

1. Test your backups — do not just assume they work

A backup you have never restored is a hope, not a plan. Before year-end close, run a real test restore of your tax software database and client document system. We have seen firms discover — during an emergency — that their backups were incomplete or corrupted for months. December is the cheapest time to find that out; April is the most expensive.

2. Lock down W-2 and 1099 data access

Year-end means payroll files, Social Security numbers, and bank details moving around the office. Review who has access to what: former employees, seasonal staff from last busy season, and shared logins are the usual culprits. Principle of least privilege is not just good hygiene — the IRS Safeguards Program and the FTC Safeguards Rule expect it.

3. Patch everything before the holiday lull

Unpatched systems are the number-one way ransomware gets in. With staff out and monitoring lighter over the holidays, make sure every workstation, server, and firewall is current before the office goes quiet.

4. Review your Written Information Security Plan

The FTC Safeguards Rule requires tax professionals to maintain a Written Information Security Plan (WISP) — and to actually keep it current. Pull yours out, check that it still matches reality (new staff, new software, new vendors), and document this year’s risk assessment.

5. Set your 2027 IT budget before busy season eats it

Every January, firms discover aging workstations, expiring warranties, and software renewals — right when there is no time to deal with them. Take an hour in December: inventory hardware age, list upcoming renewals, and budget the refresh. A planned workstation in December beats an emergency one in March.

Do not head into tax season hoping your IT holds up. Our free 27-Point IT & Security Assessment finds the gaps before busy season does — backups, security, compliance, and all.

What should accounting firms do about backups before year-end?

Run a real test restore of your tax software database and client document system before year-end close. A backup you have never restored is a hope, not a plan.

Why should firms lock down W-2 and 1099 data access at year-end?

Year-end means payroll files, Social Security numbers, and bank details moving around the office. Review who has access to what, including former employees, seasonal staff, and shared logins.

What does the FTC Safeguards Rule require for a Written Information Security Plan?

Tax professionals must maintain a Written Information Security Plan and actually keep it current. Pull it out, check that it still matches reality, and document this year’s risk assessment.

When should accounting firms set their IT budget?

Take an hour in December to inventory hardware age, list upcoming renewals, and budget the refresh. A planned workstation in December beats an emergency one in March.

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