Murphy's Law is powerful!
If you're running late, all the robots on your way to work will be out. If you're in a hurry, that'll be the day your car chooses to act up.
When you're preparing your accounting records
for your auditors
, that's the time your otherwise 'reliable' computer will crash and you'll lose all your company's financial information.
When this happens, it's more than just frustrating. The loss of financial records
for your company can have serious implications.
What are the risks if your business loses all its accounting records?
Losing your company's financial records
could result in you being unable to carry on running your business. After all, your accounting records
don't just contain information supporting your past transactions, they contain data you may need to make future decisions and transactions.
It also means you won't be able to prove that the financial information you supply to SARS and CIPRO is accurate. This could result in penalties and fines for your business.
That's why you need to make sure your accounting records are protected
Here are three simple things you can do to protect your accounting records
Werner Swanepoel gives the following three suggestions for protecting your financial records
in the Practical Accountancy Loose Leaf Service:
Back-up your accounting records on a regular basis – if possible, at the close of business every day!
Place back-ups of your accounting records on a device or medium other than the server on which you keep the master file – just in case that server crashes.
Store your back-ups in a location other than the one where your server is based, in case of natural disasters like a fire or flood. That means having a protected off-site storage area where your financial records will be safe.
And remember, if you lose your accounting records
, you can't simply correct this by recapturing the transactions – you're likely to miss something important if you do.
Start today! Put a safety plan in place to ensure your accounting records
are protected and avoid this accounting nightmare.
If you want more information on Accounting records
get your hands on the Practical Accountancy Loose Leaf.
In the Practical Accountancy Loose Leaf
we've got a dedicated chapter on accounting records, in it you'll discover:
What are accounting records?
Checklist: What do accounting records generally consist of?
Why it's important for you to keep accounting records A
3 risk areas to watch out for
Risk #1: Unauthorised access and manipulation
Risk #2: Manipulation of accounting information
Risk #3: Loss of financial information
Get your Practical Accountancy Loose Leaf here...