The Importance of Backing Up Your Financial Data

Although backing up your data may seem redundant and a nuisance, it can save your business a tremendous amount of time and money.

Imagine if all of your company data had been wiped out – billing records, customer records, financial records, vendors, receivables, accounts payable, recent orders, all gone. Catastrophic events, such as fires, floods, hurricanes, or even user error, may be the culprit of your data loss. Unless the correct procedures are followed to prevent the loss of information, your company could come to a screeching halt.

Regular backups are the best way to avoid these detrimental events. Typically, important files should be backed up once a day. Most financial programs will allow automatic or manual backups at a chosen time of the day or week.

Backups can be regularly sent electronically to an offsite location or saved to a USB drive, external hard drive, or burned to a CD and taken to safe place offsite from your business. This safe place is preferably a location with physical access controls or a place that can be locked up. Letting your financial information get into the wrong hands poses a significant risk as well.

These are also good tips to protect your personal information. It is always a good idea to back up your information and to keep it in a safe place. You can never be too safe when it comes to your sensitive, personal or business information.

If you need any further assistance or recommendations or storage and procedures for backing up your financial data, please contact Clint Carder, CPA at 314-576-1350 or at ccarder@bwtpcpa.com.

Clint Carder, CPA is an Accountant with BWTP P.C. Read more about Clint here.

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