Data backup strategies for accounting firms that can help them avoid costly downtime.

In accounting firms, data is among the most valuable assets that are managed. Client financial records, tax documents, payroll information, invoices, reports, correspondence/business records must be available when needed. Even if it is lost for a short time, it can cause disruptions in operations, slow client work down, and erode trust.

The threats are not limited to accounting firms either, as they have their own set of potential cyber threats, hardware failures, accidental deletion and system outages. Therefore, it is not just an IT precaution to have a reliable data backup strategy. It is a key element of business continuity and risk management.

To minimize the risk of expensive downtime in accounting practices, here are a few practical data backup strategies to consider.

Apply the 3-2-1 Backup Principle on the computer.Use the 3-2-1 backup principle with computer data.

The 3-2-1 backup strategy is one of the most popular backup planning strategies.

This means keeping:

3 copies of important data

2 different types of storage media

1. copy stored offsite

The idea is to not only use a single backup site. In the event of a computer failure, there is another copy available. An offsite copy can assist in restoring operations if a local server is damaged.

However, this principle can be applied to modern businesses with a mix of local backups and secure cloud storage.

2. Automate Backups

Manual backups are easy to forget, especially if you're rushed off your feet, like during tax season or financial year-end.

If at all possible, the accounting firms should automatically make backups. Important files, databases and business applications can be backed up regularly through automated systems and employees don't have to remember to do it.

Backups can be run several times per day, daily, or as outlined in a specific backup schedule depending upon the firm's needs.

Automation is also a big help in creating a uniformity. Prescribed backup policies can ensure critical data is routinely backed up, as opposed to leaving the decision to backup to employees.

3. Protect Cloud-Based Accounting Data

Cloud platforms play a critical role in many accounting firms' accounting, payroll, document management and collaboration needs. Although cloud services offer plenty of benefits, not everything is completely safe and secure from all losses.

Accounting software firms need to know what their software vendors support and how much time it takes to recover data and what options are available for data recovery.

An independent backup may be used in addition to a backup strategy for very critical information.

5. Avoid Sharing Backups with Third Parties

Ransomware poses a significant threat to companies reliant on electronic data. If the attacker gets in and encrypts files, backed up systems could be compromised as well.

Backup security should thus be considered as seriously as security for production systems.

Some of the strategies that accounting firms should consider are access restrictions, multi-factor authentication, encryption and protected backup environments. Immutable or offline copies of backups can be used when appropriate to help prevent attackers from modifying or deleting backups.

The goal is not just to have a backup – it is to have a backup that is usable in the event of a cyber incident.

Make sure to test the data restoration often.

If the business can't restore the data, the backup won't help them.

Unfortunately, there are some organisations that only find out about issues with their backups after a big disaster occurs.

It is important for accounting firms to periodically test restoration to ensure that files and systems can be restored in the allotted time. Testing can also detect corrupted backups, missing data, and configuration issues or errors in backup process.

Recording the process of restoration can make the recovery process quicker if employees are under pressure.

6. Define Recovery Objectives

All accounting firms should know how much downtime they can afford.

The Recovery Point Objective (RPO) and Recovery Time Objective (RTO) are two helpful concepts.

The amount of recent data the business can afford to lose will be determined by RPO. For instance, an RPO of one hour implies that the company seeks to recover the data with a maximum data loss of about one hour.

RTOs are a measure of how fast systems need to be back up and running following an incident.

These goals will guide accounting firms to pick the proper backup frequency and the proper backup and recovery solution, rather than just backing up data without considering the business requirement.

Install a system to manage access to backup systems.Establish system to manage access to backup systems.

The backup systems should not be available to everyone in the organisation.

Access must be restricted to authorised personnel and have adequate authentication and permissions. By having separate administrative accounts, it's easier to mitigate the risk of user credentials being compromised and used to access backup infrastructure.

It's also important to check access on a regular basis, especially when staff members are leaving or moving within the company.

8. Have a Documented Disaster Recovery Plan

Backups are only one component of a disaster recovery plan.

There should be a documented plan in place for what to do if systems become unavailable as a result of ransomware, hardware failure, accidental deletion, natural disaster or any other incident.

This plan should designate specific staff and backup staff, backup locations, recovery plans and a system for communication and the prioritization of communication during recovery of critical systems.

Staff should also know what to do in the event of an incident.

Protect Your Accounting Firm From Costly Downtime.

Downtime can be costly for accounting firms. Employees might be unable to access client data, deadlines may be overlooked, and customers may lose faith in the firm's capability to ensure that the data is kept safe.

It is important to have automated backups in place and store your data in a secure location, have access control and regularly test restoring and have a documented recovery plan which is tested regularly.

The objective is not just to make copies of your data. It's a way to make sure your business can stay open (or get back up and running as soon as possible) if things go wrong.

Data backup and disaster recovery are essential components of IT management, and by incorporating disaster prevention and recovery into a company's operations, accounting firms can minimize the impact of disruption, benefit from increased data protection and gain a degree of resilience from unexpected events.