If accurate projections about future business growth based on your current performance are vital, creating a backup of your financial accounting data is even more critical. You might need the data to check financial transactions between your company and customers, suppliers, and shareholders. Financial records are also necessary for income tax purposes, and failure to provide the required data could put business survival and your financial stability at risk.
With automation, accounting backup has become simple and hassle-free. It helps you record and track transactions, reconcile records with bank accounts, track payments seamlessly, optimize cash flows, and exert less pressure on your administrative department.
Top Reasons for Backing Up Your Accounting Data
Data Loss Prevention
Your bookkeeping data includes all the financial transactions your company has entered into since its inception. Not only does this help you monitor the performance of your business and make future strategic projections through Management Information Systems (MIS), it is also essential for monitoring your cash flow.
You might need to provide up-to-date information to the tax authorities when required and while filing your annual returns. If your hard drive fails or your system crashes, all your valuable data is lost. With cloud data backup, you can store your information safely without it taking up too much space.
Business Continuity and Sustainability
Accounting datasets are vital for business continuity. If you are a small business owner with data stored in a single device, data loss can threaten your business’ stability and continuity. All your records like receipts and invoices are essential for cash flow, and losing this would put your business in a crisis.
The threats to financial accounting data come from damage to the storage device or loss of records where data is maintained manually. With accounting backup, you can minimize these threats.
Access to Data for Auditing or Tracking Purposes
Cloud data backup becomes a key consideration when scaling your business. Data loss is a common problem with physical storage, and not recording transactions in a safe place means losing receipts and invoices.
When your accounts are audited, every transaction will be verified against the records. Not only will the audit be delayed, but the auditor can mention this in their report. It could affect the transparency of your accounts and lead to problems with the tax department.
To ensure that the audit process is completed on time, you need to organize documents relating to financial transactions. Accounting backup helps you retrieve data and reconcile it on time. You can access your data 24×7.
Improved Productivity
With cloud data backup, staff productivity goes up. Your staff can focus on business development and customer service since they don’t have to worry about maintaining records.
Following are the reasons why your productivity improves:
There is no time wasted on tracking and recording transactions
Payments due from customers and payments due to suppliers can be tracked easily. It leads to improved cash flow and better working capital management. Faster collections from debtors and timely payments to creditors ensure stakeholders view your company as professional and efficient
Your administrative staff can focus on more crucial issues like specialized training for upgrading the skills of your employees. It leads to higher customer satisfaction and higher revenues
In Conclusion
The success of your business depends on proper accounting backup. With online accounting specialists like OHI, you don’t need to worry about keeping a backup of all your financial transactions. We take care of all your accounting and data storage needs so that you can focus on growing your business and revenues to the next level.
You save more than 40% on staff overheads by outsourcing your accounting services to us. Get in touch with us today and watch your profits soar.
About Us
OHI is a specialized finance and accounting outsourcing service provider with over fifteen years of finance and accounting outsourcing experience. We have strong functional outsourcing expertise in end to end accounting processes covering daily accounting activities, reconciliations, month end and year-end account finalization processes, employee reimbursements, payroll processing, management reporting and financial analysis.
OHI serves close to 300+ clients across USA, UK and Canada. We invite you to experience finance and accounting outsourcing through us.
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