Data Security: Are Your Business Records Safe in Case of Disaster?

You’ve filled out the necessary tax forms and completed your return after reconciling your income and expenses for the year. The headache of the dreaded tax season is now over and you can get back to doing work you actually enjoy.

While the tax season may be over, you should still keep all your business records (invoices, payment records and expense/deductible receipts). In fact, the IRS requires that you keep these records for at least 3 years from the date of your return.

And, if you want to err on the side of caution keep these records for 7 years. Indeed, some accountants recommend this as the IRS can still investigate you in year 7 if you took a deduction on bad debt.

If keeping your records for that amount of time is that critical, it makes sense that you keep them secure, right?

“But, My Business Records Are Already Secure”

You may feel that your records are already safe. Maybe you store these records in a folder on your computer or make duplicates that you save to a USB. Or, perhaps you secure them in a filing cabinet, together with your shoebox of receipts, just in case the taxman comes knocking.

The problem is that these methods aren’t as secure as you may think. Computer hardware can seize and you can lose that USB. And, let’s not forget: Disaster can strike.

Think of the 2017 hurricane season or the recent floods in Houston. Disasters like these can cause severe water damage to hardware and any records can become unsalvageable.

Or, what about identity thieves who decides you’re a target? These thieves thrive on the vulnerability of small business owners who often have poor security systems in place.

That email you send to your accountant can easily be intercepted. That shoebox of receipts you deliver by post or hand can fall into the wrong hands. And so it goes.

We admit, the chances of these disasters happening are slim and your shoebox of receipts is probably safe. But, why risk losing your records if you don’t have to?

Rather invest in a solution that secures your data and also provides many other benefits for your business.



Data Security on the Cloud

According to a Cloud Industry Forum report, 99% of companies in the UK that have used the cloud to secure their data, have never experienced a security breach. This is hardly surprising as security is one of the top priorities for cloud providers.

Most providers—the ones that are worth using that is—offer encryption. Encryption—a way to conceal data in code to protect against unwanted access, is one of the safest ways to secure data.

Is it any surprise that WhatsApp introduced end-to-end encryption in the first half of 2016 to ensure that messages are only visible between the 2 parties sending them?

Other companies provide secure ways of sharing content. Box, for example, lets you send a preview of a file instead of sending the actual file. And, DropBox also offers 2-factor authentication which means you use your password to log in as well as a 1-time code.

The point is: The cloud is one of the safest places to store your business records.

How Do I Secure My Records in the Cloud?

If you’re like many small business owners, you fall along the spectrum of recording and tracking expenses in an excel spreadsheet and keeping a shoebox of receipts. The problem is: This is a time consuming and messy process and you’re often scrambling come tax time.

Furthermore, to safeguard your records against disaster you need to create backups in the cloud. You could, for example, scan your receipts and save them to a Dropbox folder. You’ll also likely have to invest in tools and systems to protect this data (assuming you’re serious about security). This entire exercise can fast become a costly one.

But it doesn’t have to be this way. A cloud accounting solution will put your income and expense tracking on auto-pilot and store this record safely, so you never have to worry about making a backup.

You will also save a lot more money: Instead of investing unnecessary money in systems and security measures, you can piggyback off the security tools the solution already offers.

What’s more, you’ll become a pro at tracking your financials year-round, and not just at tax time. Take comfort knowing your finger is on the pulse of how your business is doing.

One solution that will help you do this is FreshBooks.



Always Have a Secure Business Record with FreshBooks

FreshBooks is accounting software that simplifies billing, income and expense tracking. Because it operates in the cloud, you will always have access to the invoices and receipts needed to file your tax return.

Need to access a receipt from a specific date? No problem. Need to refer to all your invoices for a particular month or even track “other income”? Again, no problem.

This record will always be available because FreshBooks makes it a priority to protect and safeguard your data, at all times.

This is evident in FreshBooks’ security standards and protocols as well as our focus on maintaining the reliability of the software.

Data Security

The cloud may be incredibly safe, but data breaches do happen. That’s why it’s important to do your research and make sure the solution you choose has certain security specs.

For example, FreshBooks provides:

Reliability

Thanks to redundant servers and data centers your data is always available—even if there is a hardware failure. Separate data centers—away from the primary one—ensures that data is still available even if there’s a disaster.

Additionally, data is backed up each night and stored off-site to protect against disasters such as floods. With all the above, you can take comfort knowing that your records are safe.



Many More Benefits

Of course, FreshBooks isn’t a cloud storage system—that’s just one added benefit of using it to manage your accounting.

Besides keeping your records safe, FreshBooks offers many other compelling benefits:

The added benefit of data security on the cloud is really just the icing on the cake!

So, what are you waiting for?

Take control of your small business today by using FreshBooks and rest easy knowing that your business records are always 1 click away. With a free 30-day trial, you have absolutely nothing to lose.

about the author

Freelancer & FreshBooks Customer Nick Darlington is a FreshBooks customer and small business owner who's been running a writing business for close to 4 years now from his home in sunny South Africa. When he’s not sharing his knowledge and experience about how to successfully run, manage, and grow a small service business, he’s helping aspiring and established writers succeed at WriteWorldwide.

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