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Keep Your Financial Statements Safe by Following These 4 Tips

Financial statements are considered as one of the most critical documents in a business. They represent the company’s financial health and serve as a guide in making informed decisions. Financial statements highlight the areas where your business thrive and get the most ROI. If you want to keep track of your business growth throughout the years, you need to keep all your documents safe and secured.


Here are four ways to protect your business’s financial documents:


Keep hard and soft copies of your records


Having a hard copy of your financial statement makes the reproduction and distribution of files more manageable to do. However, while hard copies are helpful, they are also more prone to damages. For example, keeping them in filing cabinets is not a guarantee that they will experience less deterioration. Papers are susceptible to moulds and fire, water, or air damages, especially when put into storage. As prevention, always have a digital backup of your financial records. If you do not use software to safe-keep your files, consider scanning all your documents and storing them in a secured drive.


Keep all files organised


All your files—both the soft and hard copies—should be organised. Consider filing items according to year, month, and document type for easy monitoring and retrieval. Tracking important data in times of need will be more manageable if you arrange all your documents accordingly. You can also label your folders correctly and separate files by categories. Apply this tip to both your printed and digital files.


Invest in external hard drives


Another way to backup your data is through having external drives. Some hard drives can be sensitive, but they are a safe way to make your documents less prone to hackers. Since you can remove your hard drive and store it in a safer place, like a deposit box, it is less likely to get into the hands of thieves. Just make sure to handle your drives with care to keep your files secure.


Increase computer protection


When it comes to business, budget is always a sensitive topic. You need to protect not only your official printed records but also your digital copy from any threats, harm, and hackers. Here are some things you can do:

  • Seek help from an IT expert in making your digital files safe and secure.

  • Make sure that your computer’s firewall and antivirus software are always updated.

  • Add passwords, encryption, and two-factor authentication to improve your data security.

  • Consider saving your documents in a cloud-based accounting software instead of just in your computer drive. Cloud-based programmes have specific measures in keeping them safe from hackers or malware attacks.

  • Limit the people who have access to your computer.

  • When you delete your files, do not merely put items in the computer’s trash bin. You should wipe your drive clean or have it reformatted.


Conclusion


Whether you are a small business or an enterprise, financial records are crucial documents that contain sensitive information about your company, staff, and even clients. Plus, they are a clear representation of your current business status. You need to increase your security and back up your files properly to keep them protected from any harm.


If you need more business structure advice or help in setting up your cloud bookkeeping system, we can help you. We are your business accountants from the Gold Coast that can assist you in all aspects of your growing business. Contact us today!

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