Protecting Your Business: Disaster Recovery Planning

Hey fellow biz owners!

As bookkeepers, we often focus on managing finances, balancing accounts, and keeping everything in order. However, there’s one aspect of business management that can sometimes be overlooked but is absolutely necessary: Disaster Recovery Planning.

Now, we know this is a pretty grim topic and not the most uplifting, but extremely crucial (don’t worry, we’re in this together!). Disaster recovery planning isn’t just about preparing for natural disasters like floods or fires; while important, it’s also about preparing for the unexpected in life—what happens if you were to be suddenly unable to work, or even worse, if you were to pass away?

Think about it: if something were to happen to you or an integral member of your business, and you didn’t have a plan in place to help your business continue—hate to break it to you, but this ultimately strikes disaster. Sometimes unexpected things can happen, and they are wonderful—like receiving gold stars or getting constant green lights on the way to work—but other times, they can be tragic.

As a business owner, it is your responsibility to provide direction, reduce risks and create safety in the event you or an integral employee lose the capacity to work. By having a succession statement in place, you can provide direction in the next steps and outline financial, legal, and operational requirements to keep your business going.

There have been cases where employees who are an integral part of businesses have sadly and unexpectedly passed away, and were unfortunately the only ones to have access to information like Xero files and bank accounts, leaving their business vulnerable. This is why it is important to plan ahead.

So, wondering what steps you can take to ensure your business is protected and able to continue? Don’t worry, we’ve got you!

Tip 1: Risk assessment and business impact
To help with prioritising your recover efforts, understand the specific risk your business faces and the potential impact of different disaster scenarios.

Tip 2: Document everything
Start by documenting and protecting your business’s processes, procedures and access credentials, which is an integral part of the plan—including everything from access to Xero files, bank accounts, invoicing and processing payroll.

Tip 3: Identify key contacts
Make a list of key contacts who should be notified in case of an emergency. Whether it is a family member, a trusted co-worker or legal representative, it’s so important to create a list!

Tip 4: Create a succession plan
Designate someone who can step into your role temporarily or permanently if needed. Ensure they have access to the key information and training needed to keep your business running smoothly.

Tip 5: Document everything
Look for tools and resources to help store your sensitive information like Xero and 1Password (our favourite password manager!) to secure your details safely and access it from anywhere.

Tip 6: Regularly review and update
Last but certainly not least, don’t forget to regularly review and update your plans. As we know, things can take an unexpected turn, so it’s important to account for any changes—whether personal or in your business.

Remember: disaster recovery planning isn’t just about protecting your business, it’s also about providing peace of mind for yourself and your loved ones. By taking proactive steps, you can safeguard your business against unforeseen circumstances and ensure its continuity in the face of adversity. Stay prepared, remain resilient, and keep your business thriving.

If you’re stuck on where to begin with disaster recovery planning or simply want to chat, we’re here to help! Get in touch with our friendly team today here.