As a professional bookkeeper working closely with small business owners, I often help clients organize their financial records, track expenses, and stay compliant with tax laws. But there’s another area I’ve been seeing more and more often in recent years—cybersecurity. And believe it or not, it’s something every small business owner needs to be thinking about.
There’s a common misconception out there: many small business owners believe they’re too small to be a target for cybercriminals. After all, why would a hacker waste time attacking a company with modest revenues when they could go after the big guys? Unfortunately, that assumption can lead to serious consequences.
Why Small Businesses Are Attractive Targets
In a recent survey conducted by the Business Development Bank of Canada (BDC), 61% of respondents agreed with the idea that the bigger the business, the higher the risk of being hacked. This belief is especially prevalent among businesses earning less than $3 million in revenue per year.
But the reality is quite different.
Hackers are often more interested in quick, easy paydays than high-risk, high-reward attacks. For instance, a hacker might find it simpler to extort $50,000 each from 20 small businesses than to breach the sophisticated security of a major corporation to demand a single $1 million ransom. Small businesses are often seen as “low-hanging fruit” because they lack the budget and resources to defend themselves effectively.
And the numbers back this up: 73% of small businesses report having experienced a cybersecurity incident. That’s nearly three out of four businesses. The types of incidents vary—phishing emails, data breaches, ransomware, or even denial-of-service attacks—but the risks are real and widespread.
Understanding Risk Starts With Awareness
One of the most concerning findings in the BDC survey is how unprepared many businesses are. Too often, small business owners assume they don’t have anything worth stealing. Only 40% believe their data poses a risk in the event of a cyberattack.
But let’s break this down. Do you store customer names, contact information, or payment details? Do you have access to banking credentials, payroll systems, or supplier records? If so, you’re holding valuable data that cybercriminals can exploit.
Shockingly, most small businesses don’t even have a proper asset log or an up-to-date data inventory. Without knowing what data, you have or where it’s stored, how can you protect it?
It’s time we stop thinking cybersecurity is just an “IT problem.” It’s a business risk—and one that affects your bottom line.
Think of Cybersecurity Like a Financial Audit
As a professional bookkeeper, I encourage my clients to schedule regular financial reviews—whether it’s for tax planning, cash flow analysis, or preparing for year-end. Cybersecurity should be treated the same way.
Just as you wouldn’t go years without a financial checkup, your business needs regular assessments of its digital infrastructure. This includes not just your software and firewalls, but your people, your policies, and even your relationships with third parties like suppliers or contractors.
In fact, one in five businesses have never assessed the cybersecurity risks associated with partners or clients. Yet 40% of cyber incidents reported in the survey were triggered by an external party. That’s a serious blind spot.
Prevention Isn’t Just About Software
Many businesses are investing in anti-virus programs, firewalls, and security tools, which is great. But technology alone isn’t enough.
Cybersecurity is also about behaviour. Are your staff trained to spot phishing emails? Do they use strong passwords and avoid unsecured Wi-Fi networks? Do they know what to do if something looks suspicious?
Unfortunately, only two out of five small businesses offer cybersecurity training to their employees. And when training is offered, it’s often a one-time session—hardly enough to build lasting habits. Ongoing education and awareness are essential to creating a security-first culture in your organization.
Have a Plan Before an Attack Happens
One of the most overlooked aspects of cybersecurity is response planning. If your business is hit by an attack, do you know what to do? Who’s responsible for shutting down affected systems? Who notifies your clients? Who coordinates with law enforcement or legal counsel?
Without a clearly defined response plan, your team could panic, waste valuable time, and make the situation worse. A good response plan should answer questions like:
- Who monitors suspicious activity?
- Is someone available 24/7 to handle emergencies?
- What data needs to be restored first?
- How do you “clean” infected systems?
- How do you communicate with stakeholders?
This kind of preparation is known as a business continuity plan. It helps ensure that even in a worst-case scenario, your business can bounce back efficiently and minimize downtime.
The Financial Costs Can Be Severe
From a bookkeeping standpoint, the costs of a cyberattack can be staggering. In the BDC survey, most small businesses said they recovered from their last incident in under a week—but many of those incidents were minor, such as phishing attempts. When serious breaches happen, recovery often takes more than two months.
And the costs don’t stop at lost productivity. You could face legal fees, regulatory fines, reputational damage, or the expense of bringing in crisis managers. It’s not uncommon for the total cost of a cyberattack to hit six or even seven figures.
Protecting Your Business Is an Ongoing Effort
The good news? You don’t need to become a cybersecurity expert overnight. But you do need to take basic, consistent steps:
- Keep software and systems updated.
- Create and maintain a secure data inventory.
- Train your staff regularly.
- Work with cybersecurity professionals to assess vulnerabilities.
- Develop a response and recovery plan.
- Review your plan and processes at the very least, annually—just like you would with your financials. Recommendation would be to do this more often.
Cybersecurity is no longer optional. It’s a fundamental part of protecting the business you’ve worked so hard to build.
Final Thoughts
As a professional bookkeeper, I often say that “peace of mind comes from knowing your numbers.” The same is true for your digital security. Understanding your risks, preparing in advance, and taking preventive action can go a long way toward safeguarding your business from threats you may never even see coming.
Don’t let assumptions about your business’s size keep you from protecting what matters most. Just like solid bookkeeping practices, strong cybersecurity habits are an investment in your business’s future.
