Many businesses are feeling the burden of keeping that information safe and secure. All businesses are data mines full of important company information. Without the proper security measures in place, that data is at risk. Two months ago, we discussed the importance of developing a disaster recovery and business continuity plan in the case of a natural disaster or cyber-attack. In that article, we mentioned how important it is to have a data backup plan in place in the case of such disasters.
While some companies prefer to store their data in a concrete location (such as a warehouse or alternate physical location), many businesses are turning to new technology, such as Cloud technology, to back up their important data and information. It is your job to protect your company’s financial information and ensure that their electronic information is never lost or destroyed. You can manage the risk properly by taking the necessary precautions in safeguarding your and your important data. Keep the following information in mind as you begin planning your data backup strategy:
- Local backups (such as storing your data on a hardware drive, CD or thumb drive) can protect you from losing data due to hardware failures, viruses, software bugs, corrupt files, or accidental deletion. In order to get the most out of this method, you will need to back up your data at least once a week (some companies opt to back up their data daily). Many software systems (such as Windows 7 and Windows 8) also have built-in system backups to help make your data recovery easier. All you have to do is install it.
- Offsite data storage is another method companies can use to protect their customer data. Some companies feel that offsite storage offers them more protection from natural disasters, employee sabotage, power surges, or equipment theft. Offsite backup locations, however, do require more planning and resources. Companies who choose this route will need numerous portable media (such as hard drives, CDs or DVDs), a secure offsite location in which to store media, and an organizational plan to regularly back up the data and deliver the media to the offsite location.
- Cloud backup services are becoming more popular with businesses around the world. They are not only a cost-effective option, but they give businesses the flexibility they need when it comes to data backup. Storing your important client information and data in the Cloud not only protects it from many kinds of disasters, but it also requires no additional hardware, software, or media. Digital content is automatically transferred offsite to the Cloud, ensuring that your data is fully protected from all physical, digital, and environmental threats. This will allow your accounting firm to recover more quickly from any kind of disaster and give your clients peace of mind knowing their information is safe in your hands.
Is the Cloud Safe?
While it looks like a good solution on paper, many businesses question whether the Cloud really is a safe solution in which to store their business-critical data. Like many new technologies, the Cloud has come under serious scrutiny. How can a data backup solution that is maintained online be safe?
First of all, the Cloud has strong data encryption to prevent hackers (and even your backup service provider) from unlocking your data and violating your client confidentiality. The encryption technology is so advanced, in fact, that it offers complete confidentiality of all of your data stored in the Cloud. Make sure that your data is encrypted prior to (and during) transmission and that it remains encrypted while it is stored in the Cloud for safekeeping.
Your online data archive will also be fully protected with a digital encryption key. In order to keep your data locked up tight, make sure your provider allows you (or a designated person in your office) to be the only one with access to the encryption key. Research Cloud backup service providers thoroughly before choosing a provider for your accounting firm. Read reviews, ask other firms about their backup methods, and gain a full understanding of the provider’s services prior to coming to an agreement.
While no data backup plan is perfect, Cloud storage is cost-effective, flexible, and key to strengthening your company’s data security. The perfect disaster recovery and business continuity plan can make or break your accountant stress levels. Give yourself (and your customers) the peace of mind in knowing that your important data is stored in a secure location.