It used to be a common worry for people as to what might happen if the computer “broke down.” Many of us were trained to back up our computer records on floppy disks and keep them in safe places. More and more, I think we generally feel more complacent and are less likely to consistently back things up and worry that all could be lost even though computers still crash and information can be impossible to retrieve. I do think, however, that for a home business it can still be a good idea.
If you keep your financial records on your computer, you should definitely back them up onto a cd-rom, dvd, or disk on a regular basis. Some people choose to make hard copies of things, but I think backing up onto something is a good idea too. It is also a good idea to save your backed up files and information in a different place than your computer. In a typical business where backing up the computer files is standard, the files are usually taken and stored at a different site or in a safe. If you have a safe or a fireproof container to store your backed up files in that could be best. At least storing them safely–protected from weather, temperature changes, sticky fingers, and other potential dangers is a reasonable step toward keeping your computer records safe.
E-mails and things that can be stored “on a server” that is separate from the hard drive of your computer may not need to be backed up. When in doubt, you can save copies of things you want to keep safe and put them on a disk, cd-rom, dvd, etc. If you are in doubt about how often you should be backing up your computer records, or what should be saved, you can check with your financial or tax consultant. Additionally, your computer sales person or an I.T. Specialist can help you figure out what is the best thing to do for your business and to keep your records and business history safe.
Also: Keeping Track of Business Expenses
How Long Should You Keep Your Business Records?
What You Should Know About Receipts