What if disaster strikes?
What if your
- Computer crashes?
- Computer is stolen?
- Office is broken into?
- Best selling product stops selling?
- Business partner leaves or passes away suddenly?
- Records archives burn down?
How do I prepare for such events?
Great question!
The answer – BACKUPS. The magic number of backups is 3.
- One with you possibly done daily or every other day,
- One in a secure location on the premises,
- In a safe or the like
- One stored off site – ie: not at the office or in your car!
- The ideal place would be a safety deposit box.
Major versus Minor?
For the “everyday” type of data loss, backups are adequate. You take the necessary steps:
- Ask an expert to recover as much data as possible
- Restore your latest backup
- Patch up any holes in the data you need.
- carry on with your work.
This disaster should not put you out of action for more than a couple of days or maybe a week. Having said that, his does depend on the circumstances though. There are numerous factors. It may not even cause you down time IF there is a great plan in place.
Major data crashes however, involve contingency plans and well thought out recovery plans. These plans well planned and involve assessing the needs of the company. They are aimed at reducing the risk of major data loss in a well thought out plan.
In the event of this happening, the best advice is not to panic. There is a plan for a reason so do not make irrational decisions without going through the recovery plan.
In the event of this happening, the best advice is not to panic. There is a plan for a reason so do not make irrational decisions without going through the recovery plan.
The greatest recoveries in history were not made with quick, unplanned decisions. One week is not going to break your recovery, in fact if you spend it wisely and plan your recovery properly, you may well come out stronger than before.
Read about other common accounting mistakes here.