Option to mandate 2FA for clients with TaxDome: the only practice management platform helping your firm meet FTC compliance

Protecting sensitive client data isn’t just a responsibility for tax, bookkeeping, and accounting professionals; it’s a legal requirement. The Federal Trade Commission’s (FTC) Safeguards Rule mandates strict security measures, and one of these is multi-factor authentication (MFA) for any firm handling sensitive information. 

But here’s the challenge: few practice management platforms and client portals meet the FTC’s MFA requirement, leaving firms vulnerable to compliance issues and data security risks.

TaxDome is the solution. We offer the only practice management platform helping your firm adhere to the FTC Safeguards Rule, with the option to set firm-wide security policies and enable mandatory two-factor authentication (2FA) for clients and staff.

Our platform provides the tools, ensuring your firm can meet the FTC’s requirements, but each firm has the option to set the desired security settings for their workspace.

Now, TaxDome’s SOC 2-certified platform offers your firm an even higher level of data protection, so you can confidently meet industry compliance and operate with greater peace of mind. 

Read more below to find out why 2FA matters, the benefits it offers your firm, and how TaxDome is here to help you ensure a smooth implementation.

Why 2FA and FTC compliance is important

The FTC Safeguards Rule states that firms handling sensitive data must implement stringent security protocols, including multi-factor authentication — a secure login method requiring two or more forms of user verification.

Without this security measure in place and documented within a Written Information Security Plan (WISP), firms are at risk of compliance violations and data breaches that can damage client trust.

That’s why TaxDome now offers firms the option to enable mandatory 2FA for teams and clients — helping firms increase their data security standards and comply with the FTC’s requirements. TaxDome is the only practice management platform offering this important functionality, setting a new standard in data security protection.

The benefits of 2FA for your firm

TaxDome is committed to helping your firm secure sensitive data and meet industry-standard compliance. 

Here’s how introducing mandatory 2FA with TaxDome can benefit your firm:

1. Strengthen client trust: assure clients that their sensitive information meets FTC’s requirements — a higher level of data protection that other client portals don’t offer
2. Increased peace of mind: with 2FA implemented, give you and your staff increased peace of mind with industry-leading protection against unauthorized access
3. Avoid compliance violations: ensure your firm complies with the FTC Safeguards Rule, reducing the risk of compliance violations that can disrupt operations and harm your reputation

Implement mandatory 2FA with TaxDome 

We understand that introducing new security measures can come with friction. To help your firm implement mandatory 2FA seamlessly and successfully, we’ve provided a soft roll-out process for clients that you can follow:

1. Set an activation date and let your clients know: this way, you’ll give your clients both a heads-up and a clear timeline to prepare for 2FA setup
2. Use TaxDome’s communication tools to your advantage: TaxDome gives your firm a full suite of effective communication tools you can use to proactively inform your clients about the activation, including:
   – emails, secure chats, and SMS — let your clients know via the channel they prefer, ensuring they’re informed
   – firm announcements — create an announcement to inform/update clients that will be displayed in the client portal when they log in
   – automated reminders — automatically send reminders to keep your clients in the loop at each step 
3. Send our ready-made email template: to make the process both quicker and easier for you and your clients, we’ve added a customizable email template to the library that outlines the importance of 2FA and the simple steps to activate it, with encouragement to act promptly. (Don’t forget: TaxDome allows you to send bulk emails effortlessly!)

Two-factor authentication (2FA) from your clients’ perspective

Your clients already have the option to enable 2FA on their own, but this new setting allows you the option to set a security policy for all clients. 

When 2FA is required as a policy, clients will be provided with clear on-screen instructions to set up 2FA with their authenticator applications. We recommend utilizing industry standards such as Authy or Google Authenticator. 

Additionally, we have prepared a help article for your clients (also included in the email template) introducing 2FA, its importance, and a how-to guide every step of the way.  

Helping firms future-proof operations through an exceptional client experience

At TaxDome, we’re dedicated to helping your firm deliver a streamlined, user-friendly, and enjoyable experience to your clients at every touchpoint.

Our client mobile app, rated 4.9/5 on App Store and Google Play across more than 8,000 client reviews, is just one of the ways we make life easier for clients, allowing them to upload, scan, and sign documents, pay invoices, communicate with firms directly, and more — all on the fly from one secure portal. 

Our top-rated client experience, combined with industry-leading security — 2FA, SOC 2 compliance, and more — is how TaxDome is helping firms exceed client expectations, strengthen trust, and foster long-term loyalty, future-proofing their operations.

Gain your clients’ full trust and confidence with TaxDome

TaxDome offers the only practice management platform and client portal that helps your firm comply with the FTC Safeguards Rule by allowing your firm the option to enable mandatory 2FA for your team and clients. 

Now, your firm can protect data with even greater confidence, boost client trust, and meet industry compliance standards with increased peace of mind.

Ready to make your firm a leader in data security? Schedule a free demo to discover more about our industry-leading security and see our award-winning, comprehensive practice management solution in action.