Protecting Financial Records from Wild Weather – Biz Monday
Create a Backup Set of Records Electronically. Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.
Keeping a backup set of records – including, for example, bank statements, tax returns, insurance policies, etc. – is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned, which converts them to a digital format. Once documents are in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them onto a CD or DVD.
Taxpayers should also consider online backup, which is the only way to ensure data is fully protected. With online backup, files are stored in another region of the country – so if a hurricane or other natural disaster occurs, documents remain safe.
Document Valuables. Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. Call us for more help compiling a room-by-room list of belongings.
A photographic record can help prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area, or in the taxpayer’s online backup solution.
Update Emergency Plans. Emergency plans should be reviewed annually. Personal and business situations change over time, as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds. Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
We’re Here to Help. If disaster strikes, call us right away. We can help you get back copies of tax returns and all attachments, including Forms W-2.
970.668.0772, 970.668.0434, 888.668.0772
[email protected] – Colorado Tax Coach
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