Safeguard Your Records in Case of a Disaster
With hurricane season here, preparation is key. Protect vital tax and business records by storing them safely, scanning copies, and backing up data in the cloud. Create a home inventory with photos or videos for insurance and tax purposes.
William Stromsem, CPA, J.D., George Washington University School of Business
With better weather forecasting, individuals and businesses may have more advance notice to prepare for approaching hurricanes. Here are some suggestions:
Safeguard important business and tax records by storing originals in waterproof bags in a safe place and keeping copies in a different location. These should be secured from the elements and also from unauthorized access.
Consider scanning or photographing important documents and saving them on a flash drive that can be easily stored in a safety deposit box.
Back up business records in the cloud, if available.
For personal property, inventory valuable items and take photographs. It might be advisable to video the contents of the entire premises on your smartphone—this will help you recall items that might otherwise not be noticed, particularly if the building is gone after the disaster as happened all too frequently with Hurricane Helene.
IRS Publications 584 and 584-B have additional information on preparing for a disaster and making claims for losses. Also, even if a hurricane or other disaster isn't imminent, check that your emergency plans are updated so that you can implement them when needed.
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