How CPAs Can Safeguard Their Financial Records?

So you started a business and you have rented a space, purchased resources and hired a couple of people to keep processes running. Congratulations! You put your soul and mind into your dream and now it has finally turned into a reality. But how long will it last?

The increasing rate of data breaches make it hard for small businesses to keep their financial records safe in local systems. Therefore, businesses search for platforms to securely store their sensitive data and files. Out of numerous options, cloud-based QuickBooks is the most reliable accounting software that follows advanced data security techniques including end-to-end encryption, multi-layer firewall and two-factor authentication.  

Data is the most valuable asset for a business and to keep it safe from natural disasters such as hurricanes, tornadoes, floods, and fires, you can try these basic steps:

1. Practice Timely Electronic Backups

There are lots of businesses who transformed traditional ways of getting financial records for the sake of environment and data safety. For example, many people switched to email to receive bank statements. Storing your tax files and insurance policies in an external hard drive, CD, or DVD is a good way to secure your records. However, keeping data in a safe place is a must as disaster can strike you anywhere.

2. Value Visual Records

It is a good practice to take photos of the contents of your home or business as at the time of disaster, these visual records can convey the value of your lost items. You can keep these documents safe with a relative or friend who stays out of the area. Such documents can help you in your tax returns as well.

3. Update Your Emergency Plans

To stay away from loss of financial records alike situations, you should review your emergency plans every year or whenever you get time. It is evident that with time, personal and business situations change. So, you also need to replace the old emergency plans for yourself. Keep your employee record up-to-date as whenever threatening weather approaches, you should be ready to update them accordingly.

4. Collect Your Transcript Copies

To get the needed information about your return, or to replace lost or destroyed tax returns - you should use Form 4506. To request for individual tax return transcript, fill Form 4506-EZ and to request for a transcript of the tax return you made, go with Form 4506-T.  

5. Engage With Hosting Services

Businesses and individuals can protect their valuable data from natural disasters and cyber attacks by migrating it to cloud QuickBooks. The advanced software keeps your data in a shield of smart server and allows you to access it from anywhere across the globe.

Bottom Line:

If you’re a business professional, CPA, or accounting firm searching for a reliable and secure platform to store your sensitive business records, then don’t hesitate to connect with us. Our smart hosting solutions is what keep your data away from attacks, threats, and disasters.