In the tax industry, you could say that we have learned to expect the unexpected, especially with tax laws being updated consistently throughout the tax year. What about fires, power outages or even cybercrime? No one knows when disasters will strike, but as a taxpayer and a tax professional, you can be ready to combat problems and keep your important information safe.
Backups: Store paper client data and documents in securely locked areas. Make sure to have strong computer passwords to protect client information and be sure to back up your data daily on an external hard drive or in a cloud storage space in case of disaster such as flood, fire or power outage.
Avoid Scams: Phishing emails can look authentic, and people impersonating reliable agencies might threaten you or your clients into divulging personal information. Stand firm; if you receive an email from someone you are not familiar with, do not click on any links in the email. If you receive a threatening call, hang up immediately.
Document Valuables: Take photos or videos of the contents of your home or business, including equipment and storage areas. These visual records can help prove the value of lost items. They could help with insurance claims or casualty loss deductions on a tax return.
Emergency Plans: How well can your business come back after a disaster? Make sure to have an operations plan in place and review it annually. Just as your business changes over time, so do your preparedness needs. As you add employees or major changes occur, update your plans and inform your people.
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