For Oklahoma CPAs, keeping financial data safely stored is mission-critical. Any firm with poor data management practices is at risk for a number of career changing consequences:
- Poor client advice due to inaccurate or incomplete data
- Loss of data that has been improperly backed up
- Penalties and fines imposed by regulatory bodies
Routine backups support a CPA’s professional success by enabling them to archive data and retain records in accordance with federal regulations and industry requirements. There are a variety of archiving solutions available that use encrypted data transfer to send information to a secure remote location. Most of them are cloud-based.
Cloud-Based Backup
Online, cloud-based backup is the most popular solution for important business data. On its own or used to supplement established backup procedures, it is convenient, secure, and easy to both set up and access. Cloud-based backup services are also comparatively affordable, as more providers who are trying to stay competitive scale their pricing according to client use.
Many CPAs hesitate at the idea of sending company and client data out of the office for storage. The financial services industry operates under so many requirements and regulations from government agencies and state boards that it is natural to worry about disclosure and other problems that could arise when information leaves a firm’s direct control.
Modern online backup includes encrypting data before it leaves the company network and again after it arrives at the cloud-based storage location. The information is, therefore, unreadable by anyone who lacks the proper tools to decrypt the data. Because the decryption key remains with the firm, the risk of offsite storage is dramatically reduced.
What to Look For
For CPAs in Oklahoma, the ideal online backup and storage solution should be both simple and automated. Most service packages allow clients to schedule both backups and retrievals and transmit information using 256-bit AES encryption with a client-defined key.
CPAs looking for a cloud-based service also need to confirm that they can quickly view a log history for all backup and restore sessions and track activities like login and logout. Meticulous recordkeeping and archiving standards are mandated by financial services industry regulators. A backup solution that helps a firm meet these obligations is a genuine asset.
Bottom Line
Routine scheduled backups help CPAs keep their valuable financial data safe. The need to keep these details secure cannot be underestimated. The loss of critical information can cripple a company, destroy its public image, and bring on severe penalties from the regulators. With so much at stake, Oklahoma CPAs need to consider regular data backups as part of their disaster recovery and business continuity planning.
Is data backup and storage an important part of daily operations at your firm? If not, why? Let us know your thoughts in the Comments box below.
And to follow up on the tips introduced in this article, be sure to download your free Oklahoma CPA Mobile Security Checklist.
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