Accounting Firm Technology: Early Prep for Tax Season 2026 in Bergen County
Getting ahead of tax season preparation while protecting against IRS impersonation trends and safeguarding client data.
Tax season 2026 may seem far off, but savvy accounting firms in Bergen County know that early preparation is the key to success. With accounting firms facing a 300% increase in cyberattacks since the coronavirus pandemic and the IRS highlighting new threats in their 2025 Dirty Dozen list of tax scams, technology preparation has never been more critical.
For Bergen County accounting firms serving clients across Essex, Union, and Passaic counties, the intersection of technology advancement and cybersecurity threats demands a proactive approach. This comprehensive guide will help you prepare your firm's technology infrastructure while protecting against the emerging threats that could compromise your clients' sensitive financial data.
The Changing Landscape of Tax Season Technology
The accounting profession is experiencing unprecedented technological transformation. Gartner predicts that by 2025, the 10% of enterprises that adopt AI practices will experience as much as three times more value than the remaining 90% of companies that don't embrace these innovations.
For Bergen County accounting firms, this transformation brings both opportunities and challenges:
Technology Acceleration: The pandemic was a catalyst for technology and created a shift, making it clear to companies in virtually every industry, including tax and accounting, that if they want their organizations to have the flexibility and scalability to thrive, especially during times of disruption, they need to get to the cloud, and fast.
Regulatory Changes: The IRS continues modernizing its systems, with the IRS announcing it will decommission the Filing Information Returns Electronically system in January 2027; all 2026 returns will need to use the new IRS Information Returns Intake System.
Growing Threats: The IRS continues to see the "new client" scam, which involves spear phishing attempts that target tax pros. Cybercriminals impersonate new, potential clients to trick tax professionals and other businesses into responding to their emails.
Essential Technology Infrastructure for Tax Season 2026
Cloud-Based Tax Software Solutions
The foundation of a modern tax practice lies in robust, cloud-based tax preparation software. CPAs and tax preparers most often turn to these three tax software programs: UltraTax CS, Lacerte, and Drake Tax, according to a 2024 survey of CPAs conducted by the Journal of Accountancy and The Tax Advisor.
Key considerations for Bergen County firms include:
Professional-Grade Options:
UltraTax CS by Thomson Reuters offers enterprise-level capabilities
Lacerte by Intuit provides excellent multistate business return handling
Drake Tax delivers cost-effective solutions starting at $350
CCH ProSystem fx enables integrated tax, accounting, and workflow solutions
Cloud Advantages: Cloud-based tax preparation means hosting tax applications on cloud servers to facilitate tax planning operations. By adopting cloud technology, businesses are moving towards transforming the tax preparation experience while gaining access to leading tax software solutions such as Drake, Lacerte, Pro Series, ATX, ProSystem Fx, and UltraTax, irrespective of location.
Practice Management and Workflow Automation
Modern accounting firms require more than just tax software. Tax processing software is the backbone of your seasonal operations, along with modern tax research tools, but comprehensive practice management is equally crucial.
Essential Features:
Document management and secure client portals
Automated workflow templates for different return types
Time tracking and billing integration
Client communication tools with encryption
Electronic signature capabilities
Workflow automation software streamlines and automates various tax preparation and filing aspects. Depending on the specific software, it can simplify data input, form completion and electronic filing. As accounting firms look to grow by taking on more clients, workflow automation software will become increasingly necessary in 2024 to efficiently manage increased workloads while maintaining accuracy.
Critical Cybersecurity Measures for Bergen County Accounting Firms
Understanding the IRS Dirty Dozen 2025 Threats
The IRS has identified specific threats that Bergen County accounting firms must prepare for:
Email Phishing Scams: The IRS continues to see a barrage of email and text scams targeting taxpayers and others. Taxpayers and tax professionals should be alert to fake communications from entities posing as legitimate organizations in the tax and financial community, including the IRS, state tax agencies and tax software companies.
New Client Impersonation: Through these spear phishing emails, scammers try to impersonate new clients and steal client data, tax software preparation credentials and tax preparer identities with the goal of getting fraudulent tax refunds.
Social Media Misinformation: Social media platforms routinely circulate inaccurate or misleading tax information, including on TikTok where people share wildly inaccurate tax advice. Some involve urging people to misuse common tax documents like Form W-2.
Implementing the IRS Security Six Framework
The IRS Security Six serve as essential rules for how firms should lay out their strategies for protecting data. Bergen County accounting firms must implement these foundational security measures:
Written Information Security Plan (WISP)
Access Controls and Multi-Factor Authentication
Data Encryption (in transit and at rest)
Software Security and Patch Management
Security Awareness Training
Incident Response Planning
Access Controls Implementation: Businesses in Bergen County, NJ, enforce password policies that require employees to create complex passwords that combine alphanumeric characters, symbols, and uppercase/lowercase letters. MFA adds an extra layer of protection by requiring users to verify their identity using multiple factors, such as a password and a one-time verification code sent to a mobile device.
Data Protection and Client Confidentiality
For Bergen County accounting firms, data protection extends beyond basic cybersecurity measures. New Jersey introduces NJ DaTA: NJ has introduced Assembly Bill A505, the New Jersey Disclosure and Accountability Transparency Act, also known as the NJ DaTA, which mandates reasonable security practices for personal data and breach notification.
Compliance Requirements:
New Jersey Public Accountants Law Section 47:3-6 requires CPAs to exercise "reasonable care and skill"
FTC Safeguards Rule applies to many tax preparers and accounting firms
Industry-specific data protection standards
Practical Protection Measures:
End-to-end encryption for all client communications
Secure document management systems
Regular security audits and vulnerability assessments
Employee cybersecurity training programs
Technology Trends Shaping Tax Season 2026
Artificial Intelligence and Automation
More than 60% of business and technology leaders report excitement about the prospect of generative AI, and 56% are using it to improve efficiency and productivity. For Bergen County accounting firms, AI offers several applications:
AI-Powered Features:
Automated document categorization and data entry
Intelligent error detection and correction
Predictive analytics for tax planning
Enhanced fraud detection capabilities
"Firms like ours that prepare a large population of tax returns for a variety of taxpayers can use AI to identify an aspect of a return that is outside the range expected based on other factors in the return. This can lead us to look at a particular aspect of the return we might not have otherwise noticed to be out of the ordinary."
Mobile Technology and Remote Access
As mobile usage continues to rise, clients will gravitate more toward firms that offer convenient mobile accounting apps that simplify their part in the tax preparation process. Mobile accounting apps allow clients to upload vital tax documents, communicate with their accountants and even sign their tax returns from their smartphones or tablets.
Mobile Capabilities Include:
Secure document upload and sharing
Real-time communication tools
Electronic signature capabilities
Progress tracking for tax preparation
Cloud Integration and Scalability
Moreover, cloud-hosted solutions bring scalability, which implies you can increase or decrease your resources as needed, making it appropriate for firms of all sizes. Your client's financial data is also kept under the advanced security shield in the cloud, protecting your sensitive financial information.
Early Preparation Strategies for Tax Season 2026
Infrastructure Assessment and Upgrades
Begin your tax season 2026 preparation with a comprehensive technology audit:
System Evaluation:
Review current tax software capabilities and licensing
Assess hardware requirements and capacity
Evaluate network security and performance
Analyze data backup and recovery procedures
Upgrade Planning: Start implementation well before tax season. (If you're in the middle of tax season, note the name of the software, then add it to your debrief session's 'future tax season recommendations' agenda.) Ensure all team members receive proper training. Document standard procedures for each application.
Staff Training and Development
Businesses conduct regular training sessions to educate employees about cyber threats, phishing scams, and best practices for securely handling sensitive information. By fostering a culture of vigilance and accountability, employees become the first line of defense against social engineering attacks and unauthorized access attempts.
Training Components:
New software platform proficiency
Cybersecurity awareness and threat recognition
Client communication protocols
Emergency response procedures
Client Communication and Engagement
Prepare your clients for the upcoming tax season through proactive communication:
Client Preparation:
Early document request systems
Secure portal setup and training
Communication of new procedures and requirements
Education about emerging scams and threats
Managed IT Solutions for Bergen County Accounting Firms
The Case for Outsourced IT Management
Managing security can seem overwhelming, but it doesn't have to be. Complying with the IRS Security Six and protecting client data is possible. It requires careful planning and the right partner. Outsourcing elements of data security to a trusted partner can help firms.
Benefits of Managed IT Services:
24/7 monitoring and support
Proactive threat detection and response
Regular security updates and patches
Compliance assistance and reporting
Scalable solutions for growing firms
Local Bergen County IT Support
Working with a local managed service provider offers unique advantages for Bergen County accounting firms:
Local Benefits:
Understanding of regional compliance requirements
Rapid on-site response capabilities
Familiarity with local business networks
Personalized service and support
In Bergen County, NJ, cyber security is paramount in protecting businesses and organizations from a wide range of digital threats that continue to evolve in complexity and frequency. From small startups to large enterprises, every entity faces potential risks such as data breaches, identity theft, and financial fraud, highlighting the necessity of robust cyber security measures.
Cost Considerations and ROI
Investment vs. Risk
The cost of implementing comprehensive technology and security measures must be weighed against potential risks:
Risk Factors:
Failure to meet IRS requirements can lead to fines, legal costs and other financial losses for firms. Beyond what the IRS requires, data breaches can lead to a loss of both potential and existing clients. They can also lead to a damaged reputation.
Client loss due to security incidents
Regulatory penalties and compliance failures
Business interruption costs
Return on Investment:
Increased operational efficiency
Enhanced client satisfaction and retention
Reduced manual processes and errors
Competitive advantage in the marketplace
Budget Planning for Technology Upgrades
Develop a comprehensive budget that includes:
Technology Costs:
Software licensing and subscriptions
Hardware upgrades and replacements
Network infrastructure improvements
Security solution implementation
Service Costs:
Managed IT support contracts
Staff training and certification
Compliance auditing and reporting
Emergency response and recovery services
Regulatory Compliance and Future-Proofing
Staying Ahead of Regulatory Changes
The 15% global minimum tax and new global requirements related to ESG reporting will have a seismic impact on how companies calculate their taxes, and where offices of finance focus their time. The European Union will require green energy and carbon footprint financial reporting in 2023, and the U.S. will require it by 2026.
Preparation Strategies:
Monitor IRS modernization initiatives
Stay informed about state-specific requirements
Implement flexible systems that can adapt to changes
Maintain regular compliance reviews and updates
Building Resilience for the Future
As digital transformation continues to accelerate the evolution of tax and accounting, the players who expedite their embrace of these six technology trends will have an early mover advantage. Particularly as the profession grapples with the continued war for talent, the firms that incorporate these trends into their business priorities will be best positioned to leverage each as an opportunity to drive growth, efficiency and resilience.
Future-Ready Elements:
Scalable cloud infrastructure
AI-ready systems and processes
Comprehensive security frameworks
Flexible workflow capabilities
Taking Action: Your Next Steps
Bergen County accounting firms that begin their tax season 2026 preparation now will have a significant advantage over competitors who wait until the last minute. The combination of evolving technology, increasing cybersecurity threats, and changing regulatory requirements demands immediate attention.
Immediate Action Items:
Conduct a Technology Assessment: Evaluate your current systems against tax season 2026 requirements
Review Security Posture: Implement or update your cybersecurity measures based on the IRS Security Six
Plan Staff Training: Develop comprehensive training programs for new technologies and security awareness
Evaluate IT Support Options: Consider partnering with a local managed service provider for comprehensive support
Budget for Upgrades: Allocate resources for necessary technology and security improvements
Long-Term Strategic Planning:
Develop a technology roadmap aligned with industry trends
Create incident response and business continuity plans
Establish regular security audit schedules
Build client education and communication programs
Partner with Local IT Experts
CBC Technovations has been serving Bergen County accounting firms since 2014, providing the technology solutions and cybersecurity services that modern tax practices require. Our comprehensive managed services include:
Proactive Monitoring: 24/7 system monitoring and real-time threat detection
Security Implementation: IRS Security Six compliance and advanced cybersecurity measures
Cloud Solutions: Secure, scalable infrastructure for tax season demands
Local Support: Bergen County-based technicians who understand your business needs
Compliance Assistance: Helping firms meet regulatory requirements and industry standards
With tax season 2026 approaching, don't wait to address your technology and security needs. Contact CBC Technovations today at (973) 337-8808 to schedule a comprehensive technology assessment and begin preparing your firm for success.