Categorized | News

Online Backup and Storage Crucial for Paperless Accounting

It’s widely accept that for a more “green” or economical approach to working and record keeping is to store all your files online.

Although the green credentials should be praised, one cannot ignore the productivity beenfits of having all your documents stored digitally. The ability to easily and quickly search the contents of all your files in one go means that it can drastically improve your productivity.

The time saved in never having to leave the desk to look for paperwork, and having all the files available to just a few seconds means that companies can spend resources and manpower on more important tasks.

Recently HMRC (British tax authority) stated that it’s firmly in support of electronic invoicing systems and the digital format is just as valid as the paper counterpart. As long as it has all the necessary information, it’s perfectly adequate.

Typically British companies are required to keep invoices for as long a sup to 6 years, for a firm involved in high volume and low cost retail operations this could mean that the company has to store up to hundreds of thousands of invoice every year. Over 6 years this would certainly mean that the firm would have accumulated a substantial amount of paper documents required by law to keep which would cost the firm a fair amount in storage to keep.

Bear in mind there are certain standards and legal guidelines for storing a) paper and b) documents of financial importance.

Security and risk

Certainly paper invoices are volatie and prone to fire damage and other hazards, for one thing invoices can easily be misplaced making them impossible to find.

But all your accounting documents in computers is far more volatile, given how common it is for computers to malfunction. Businesses need to take necessary precautions to cover their backs.

It should be assumed that every computer at one point or another is likely to fail, in fact 25% of computers lose all their data each year.

A good system to keep backups is to store your important documents safe offsite, using a archiving only system where by documents are poeriodically backed up but never accessed or accessible by the end user.

Good practice for small business and sole traders

Sole traders need to pay particular attention to this as they are far more likely to lose their important data.

  • Backups should be kept on a LAN drive, which is automatically processed once every two weeks (or a extrnal drive)
  • Backups should also be stored on online backup services like the ones here
  • Backups should be kept on optical media, and kept in a fireproof safe of vault.

Leave a Reply