If your business handles sensitive financial information, whether you’re an accounting firm, tax preparer, or financial advisor, you’re required to follow the FTC Safeguards Rule. This regulation demands strict security protocols to protect customer data from cybercriminals, loss, or misuse.
Many small businesses rely on Google Workspace because it’s easy to use and affordable. But here’s the reality: Google Workspace doesn’t offer the level of security controls and compliance tools needed to meet FTC Safeguards requirements.
The good news? Microsoft 365, combined with the right managed IT services (MSP), offers a secure, compliant, and scalable solution that keeps your client data protected and your business in line with regulations.
A Quick Look at FTC Safeguards Compliance
The FTC Safeguards Rule requires financial institutions; including tax firms, accounting practices, and financial consultants, to implement key cybersecurity measures, such as:
- Limiting access to sensitive data
- Monitoring systems for threats
- Data encryption
- Secure, managed backups
- Regular risk assessments
- An incident response plan
Simply having files stored “in the cloud” isn’t enough—you need robust controls, monitoring, and documentation.
Why Google Workspace Misses the Mark
While Google Workspace is great for basic collaboration, it falls short in critical compliance areas:
Limited Access Controls
Google lacks fine-grained, role-based access management needed to properly secure sensitive financial data.
No Built-In Threat Monitoring
Google doesn’t offer native 24/7 threat detection or incident response. You must rely on external tools, which creates gaps.
Inadequate Backup & Recovery
Google’s retention periods are limited. It doesn’t offer fully managed, offsite, and monitored backups critical for FTC compliance and ransomware protection.
Limited Encryption Control
Google encrypts data but doesn’t provide customer-controlled encryption keys unless you invest in its most expensive enterprise plans.
No Native Compliance Reporting
Google lacks centralized tools for generating the risk assessments, incident reports, and audit logs required under the Safeguards Rule.
Why Microsoft 365 Is the Better Solution for FTC Safeguards Compliance
Microsoft 365, when paired with a knowledgeable managed IT provider (MSP), offers everything you need to satisfy the FTC’s requirements and protect your client data.
Granular Access Control
Microsoft 365 offers enterprise-grade access management tools, including:
- Conditional Access (limit access based on location, device, risk level)
- Multi-Factor Authentication (MFA)
- Role-based permissions for files, emails, and apps
This ensures only authorized staff access sensitive information.
Advanced Threat Monitoring & Response
With tools like Microsoft Defender for Business and Defender for Cloud Apps, Microsoft 365 offers:
- Real-time threat detection
- Automated alerts for suspicious activity
- Built-in response actions
Pair this with an MSP’s 24/7 monitoring, and you’ve got robust protection.
Managed, Monitored Backups
Microsoft 365, integrated with third-party backup solutions (which your MSP manages), provides:
- Offsite, secure backups of email, OneDrive, SharePoint, and Teams data
- Point-in-time recovery to protect against ransomware or accidental deletion
- Daily monitoring to ensure backups are successful and recoverable
Comprehensive Encryption
Microsoft offers full encryption in transit and at rest. With options like Customer Key, you gain control over your own encryption keys—an important element for demonstrating compliance.
Built-In Compliance Tools
The Microsoft Purview Compliance Portal includes:
- Data loss prevention (DLP) policies
- Audit logging and reporting
- Insider risk management
- Compliance score tracking
- Tools to help meet FTC, HIPAA, and other regulations
MSP Delivered Cybersecurity & Compliance
While Microsoft provides the technology, the real magic happens when you partner with a Managed Service Provider (MSP). Your MSP helps you:
- Configure and manage security policies
- Monitor systems for threats
- Perform regular risk assessments
- Manage secure backups and disaster recovery
- Maintain documentation needed for compliance audits
- Provide staff training on cybersecurity best practices
The Bottom Line
Google Workspace wasn’t designed for regulated industries like financial services. It lacks key controls required to meet the FTC Safeguards Rule without significant third-party tools and heavy lifting.
Microsoft 365, paired with a managed IT provider, offers a security-first solution designed to meet FTC requirements. You get built-in compliance tools, enterprise-grade security, continuous monitoring, and the peace of mind that comes from knowing your clients’ sensitive data is protected.
Not sure if your firm is compliant?
Let’s chat. As a managed IT provider that specializes in supporting financial firms, Plus 1 Technology can help assess your current environment and create a plan to bring your business into compliance, without the stress. Contact us today to get started.
