Introduction‍

Handling sensitive financial and personal data makes secure file sharing non-negotiable for accounting firms. With compliance frameworks like GDPR and SOC-2 setting high expectations, this article outlines a good-better-best approach - helping small firms move beyond risky habits and adopt stronger, client-ready policies.

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Good: Email Sharing (Why Many Firms Start Here, and Why It’s Risky)

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Now, you might be thinking that sending attachments by email (maybe even with a password) counts as secure sharing. In reality however, emails leave firms exposed: outdated protocols, weak encryption, and no audit trail. Once sent, files cannot be retracted or monitored. The FBI reported $2.7 billion lost to business email compromise in 2022. At best, email should only be used for low-sensitivity, short-term exchanges.

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Better: Cloud Drive Folders & Shared Services

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Moving to shared platforms like Google Drive, OneDrive, or Dropbox may offer firms a stronger alternative to email. These tools provide version control, central storage, and encryption at rest and in transit, along with MFA and controlled permissions. They also support retention policies and backups (Oracle). However, risks remain: folders shared by mistake, shadow accounts, and limited audit trails can still create compliance gaps.

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Best: Client Portals as Secure Gateways

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Client portals, such as Client Hub, provide the highest level of security and control for accounting firms handling sensitive client information. Instead of juggling shared links or email chains, portals centralize everything into a secure, authenticated workspace. Key advantages include:

• Full encryption to protect financial and personal data.
• Dedicated client workspaces so files stay properly separated.
• Built-in compliance support to align with GDPR, HIPAA, and SOC-2.
• Enhanced client experience through a user-friendly interface that integrates seamlessly into firm workflows.

This makes client portals the gold standard for secure collaboration.

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Firm Development / Implementation Guidance

To build lasting file sharing security, firms need structured steps:

• Assess your current state with a file sharing audit to identify risky practices and compliance gaps.
• Set policy levels by defining what “good,” “better,” and “best” look like for your workflows and clients.
• Train the team in secure handling, awareness of phishing risks, and correct use of chosen tools.
• Monitor and review with scheduled audits, policy refreshers, and incident response protocols to keep standards effective.

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Moving Toward Best Practices

Shifting from risky email habits and basic cloud storage to a secure client portal is the most effective way to protect sensitive financial data, prevent costly errors, and meet compliance obligations. With Client Hub, firms get encrypted file sharing, dedicated client workspaces, and compliance-ready controls - all within an easy-to-use platform. Elevate your firm’s professionalism and safeguard client trust by making Client Hub your secure file sharing solution!