Record Keeping and Data Backup

Record keeping is an essential business activity with taxation authorities, insurance companies, investor bodies and shareholder interests all requiring access. Records can be considered to be vital, important and useful. Vital records are irreplaceable while important records can be replaced but usually at considerable expense.

Where possible all records should be backed up to another location, either within the business premises, or preferably at an off-site location. This is simpler in the case of computer records with data links and automated daily backup being options. Paper records also need to be protected and backed up. Cabinets with a fire resistance of two hours or more should be employed to house the records both where they need to be accessed and at an external backup location.

Legal Obligations

In addition to proof of financial transactions, records need to be retained for legal and statutory compliance. Government bodies demand retention for certain periods and obligations under employment acts also need to be met.

Disaster Records

As well having procedures and systems in place to protect records in the event of a disaster be it natural such as flood, human such as IT crime, or a systems failure, records of the disaster and subsequent recovery need to be generated and maintained in a similar fashion to all business records.

Auditors and insurers will require access to these records for loss assessment and also contingency planning. Improvements in DR applications can be made once the DR records have been analyzed.