We’ve previously written on emergency tips for small businesses. One of the best tips was on how to protect to your data. To help out more, we will share why small business should backup data below.
1. What Data to Backup
You should always have any relevant data backed up. In most cases, just having paper copies and copies on a local hard drive aren’t enough. Many circumstances can arise that can destroy both of them. For example, imagine your office floods. The flood can destroy both the computer and filing system housed inside. The same goes for fire, other forms of water damage, severe weather, and much more. Data to backup includes:
- All payroll items such as checks, debts, information on contractor payments, etc.
- Bank statements with all deposits, withdrawals, etc.
- Customer related forms such as work orders, invoices, purchases, and all related items.
- Employee records including applications, hiring forms, legal documentation, and more for all workers from temp to full time to contractors.
- Receipts for expenses from small office supplies all the way to mortgages and beyond.
- Any and all records involving your tax return from at least eight years prior.
Remember, it’s always better to backup too much than too little.
2. Backup on an External Hard Drive
One way to backup your data is to an external hard drive. One benefit is that these devices cost about $50 each, depending on the size of storage you need. You can attach them to all computers and many backup automatically. However, the downside is they only protect you in the event of a computer crash. They are still subject to any damage that may occur in your office.
3. Cloud Data Backups
This is a superior option because your data is backed up professionally offsite. Your data will be protected even if your place of business is completely destroyed. In addition, this option also protects you against hackers who threaten to lock up your data unless you pay a ransom, aka ransomware. Many providers charge by the device or by the storage space needed. You can pay monthly, yearly, or another method. Best of all, you may deduct this cost as a business when preparing your taxes. Click here for a list of top data backup options for small businesses.
4. Get a Bookkeeper
The absolute worst records to lose are anything to do with your taxes such as income, credits, deductions, expenses, forms, and much more. In the unfortunate event of an audit, you are responsible for providing these records and accounting for each dollar. Using a bookkeeper not only allows you to have backups of all these records, they can also help you make sense of it all.
Why Small Business Should Backup Data in Houston
Does your Houston-based small to mid-sized business need the help of a bookkeeper to help backup data and more? Our bookkeeping services are professional, secure and help you avoid disaster. Feel free to contact us to learn more on how our team can help with your small business’s needs.