Are your important records protected in the event of a flood, fire or other natural disaster? It’s a fact: Too few homeowners and small businesses back up their important documents. The Internal Revenue Service offers these tips for making sure you’re ready for anything:
Create a backup. Keep a set of backup records in a safe place. The backups should be stored away from the originals. Keeping a backup set of records –– such as bank statements, tax returns and insurance policies –– is easier now that many financial institutions provide statements and documents electronically. Records that aren’t available online can be scanned into an electronic format and stored on an external hard drive.
Document valuables. It’s always a good idea to photograph or record the contents of your home or business. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings. Again, it’s crucial to store this inventory somewhere other than your home or business, perhaps with a trusted friend or family member.
Update emergency plans. Create an emergency plan and review it annually. Preparedness requires change over time. For a business, it’s a good idea to update an emergency plan when new employees are hired or any other major changes are made, such as moving to a new location.
For more tips designed to help you prepare your home and business for disaster, go here.
