Use these three tips to protect your accounting records from the loss of financial information
43984, 11 Sep. 2014
Your accounting records are the lifeblood of your business.
You must protect them from risks like the loss of financial information.
But how do you go about doing this?
Use these three tips to protect your accounting records from the loss of financial information so your business will continue to thrive.
Before we get to the tips, take a look at the risks to your business if you lose financial information
You could lose your financial information due to natural disasters (floods or fires), computer hardware or software failure or even manipulation or deletion by hackers.
If you lose financial information, you risk losing the ability to carry on running your business. All the information that supports past transactions will be lost, as well as data you need to make future decisions and transactions. And if you can’t prove what customers owe you, they’re unlikely to pay their accounts.
In addition, you won’t be able to prove that the financial information you supply to SARS and the Companies and Intellectual Property Commission (CIPC) is accurate. This could mean penalties and fines for your business.
Now let’s look at how to protect your accounting records from the loss of financial information.
Here are three tips to that’ll help you protect your accounting records from the loss of financial information
Tip #1: Back up your accounting records on a regular basis, if possible at the close of business every day.
Tip #2: Make the back-ups on a device or medium other than the server on which you keep the master file, just in case that server crashes.
Tip #3: Store your back-ups in a location other than the one where your server is, in case of natural disasters.
Losing your financial information could cripple your business, so protect your accounting records from the loss of financial information with these three tips.
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