If you lose your data, you lose everything, and it can be very difficult to recreate. You can back up the hard drive of your personal computer (or just your financial data) to a CD, flash drive or an external hard drive. Office computers and servers can be backed up as well. We recommend storing your backups in an off-site location because a back up is no good if it is ruined in the same disaster as the original data! If it is not possible to store your back ups off site, we recommend purchasing a fire and water proof safe or filing cabinet to store them in.
When choosing an offsite location for your back ups, it isn’t always wise to choose the location based on convenience. If the offsite location is close to your home or office, there is the potential that the location could be destroyed in the same disaster that destroyed your home or office.
If you use accounting software, such as Quickbooks to maintain your financial data, look into the possibility of online backups. This service is often offered for a monthly fee and can be instrumental in securing your financial data. These backups can usually be accessed from any computer with the same software, which can help you get back up and running in the event of a disaster!
Jordan Nellé, CPA
Davis & Hodgdon Associates, CPAs