Tech's top 10: security, document management hot issues for 2005.

As technology continues its increasingly important role in how CPAs serve their clients, here are the top issues CPAs should watch for, according to the AICPA's 2005 Top Technologies survey.

The annual survey polled more than 300 participants, a 30 percent increase over the previous year.

#1 Information Security

CPAs control a significant amount of financial information on their networks and this information could be extremely valuable if not protected.

Protection of financial information begins with procedures that lock down data to prevent unauthorized access. Changing passwords every six months (or less) and using screensaver passwords on workstations are minimum precautions. The latest network security patches should be installed, as well as firewalls.

Firms that do not have the personnel in house should work with an external network integrator or organizations that specializes in information security services.

#2 Electronic Document Management

EDM describes the process by which firms capture, index, store, retrieve, search and otherwise manage digital documents.

Firms should capture information as it is introduced to them, whether through digital faxes, e-mail or scanning documents, for archival in a PDF or similar digital format. Organizations must standardize file-naming conventions and directory structures, such that it is easy for any firm member to not only properly name and store a document, but also to find them easily.

Document management applications store these documents and make them searchable by key words, incorporate workflow processes and include digital document destruction procedures.

#3 Data Integration

This is how data from different applications can be connected to get more use out of the information or reduce time rekeying it.

For CPAs, this includes the automatic transfer of client information between practice management, audit engagement and tax applications, such that a change in one file flows through to the others.

While the databases within the various products may be managed with different architectures, the data fields are linked in such a way that changing one automatically transfers and updates the information at the other locations.

#4 Spam

With the volume of spam increasing and the methods used by spammers to deliver e-mail becoming more sophisticated, firms must stay on top of anti-spam solutions.

The most likely anti-spam solution for medium to large organizations is having their e-mail screened by companies whose primary business is filtering spam. All e-mails to the firm are directed to the filtering company, which blocks blatant spam and any known viruses, before being delivered to the firm's e-mail servers.

Firms may also have a spam filter on its e-mail servers to manage questionable items, such as newsletters, which may or may not be requested by employees.

For smaller firms, personal spam filters are the most likely solution. Some of these filters rely on lists of identified spam senders, key words or breaching a "score" that is pre-determined by the client.

#5 Disaster Recovery

CPAs are extremely reliant on their IT infrastructure to service clients, so any loss in their ability to access network resources translates directly into lost profitability.

Firms must back up, verify and store data offsite so that it is easily accessible in the event of a disaster, and develop a business continuation plan that outlines the network infrastructure and the processes to rebuild this if necessary.

[ILLUSTRATION OMITTED]

There are a number of templates available through organizations such as the SANS Institute and the AICPA that can assist in this process, which should be coordinated with the firm's external network support group.

#6 Collaboration & Messaging Applications

These are applications, such as e-mail and instant messaging, that allow for electronic communication.

Messaging applications have evolved to voice mail and messaging being incorporated into e-mail systems to provide the capability to move them like any other electronic document and either play them in their native format or convert them to text, depending on the recipient's requirements.

Collaboration technologies refer to tools that allow information to be shared live, such as a white-boarding program, or in an archived and accessible format, which an intranet or web-based storage application would do.

#7 Wireless Technologies

There have been significant strides in recent years allowing organizations to utilize wireless technologies more effectively. Within firms, the 802.x, or Wi-Fi, standard allows for computers to be un-tethered from the network, but still access network resources, as long as they are within range of a wireless base station (usually 300 feet). The speed of data transfer can be as high as 54 mbps for newer systems.

This same Wi-Fi technology allows individuals outside of the office to use public wireless access points often found at airport, hotels or coffee shops, to connect to the internet to access the firm and send e-mail.

Wireless technologies also refer to digital broadband networks built similarly to cell phone infrastructure, which allow individuals to wirelessly access their firms from a much broader coverage area.

While there is still much concern about security ramifications of utilizing wireless, many firms have been successful in securing their information utilizing proper encryption and training users on the dangers.

#8 Authentication Technologies

These technologies are defined as the hardware, software, process and procedures used to protect a person's privacy and verify that users are who they say they are.

Passwords provide a basic form of authentication, but they can easily be captured and duplicated, which is not the case with biometric authentication tools, such as fingerprint or iris scanners. In time, these tools will be built into equipment to make it easy for the least technologically astute individuals to utilize.

#9 Storage

While smaller organizations can rely on CDs or DVD-ROMs for storage needs, most will rely on tape systems to back up data.

For those with larger archival needs, internet-based services are evolving to allow firms to store all, or a portion, of their data, and storage area networks and network attached storage are also available.

Storage technologies also include portable hard drives and USB data fobs that are replacing floppy drives and CDs.

For live maintenance of files on servers, the standard is still RAID drives--redundant array of inexpensive drives--which allow firms to provide redundant storage, as well as easily expand their storage requirements.

#10 Learning & Training

CPAs must understand and utilize these ever-evolving technologies, and identify the most effective client service processes and standardize them as part of a "learning organization" concept.

Firms also should dedicate someone to train employees and develop learning curriculum to optimize the effectiveness of each individual and each technology.

BY ROMAN H. KEPCZYK, CPA 

Roman H. Kepczyk, CPA, CITP is president of InfoTech Partners North America, Inc. and chair of the AICPA's Information Technology Executive Committee. You can reach him at [e-mail].