Backup

What is a backup?

A backup is a duplicate copy of your important business data—invoices, client information, payment records, financial reports—stored in a separate location from the original. If your computer crashes, gets stolen, or files get accidentally deleted, backups let you recover without losing everything.

For small business owners, losing financial records can mean lost income, tax problems, and hours of recreating work. Regular backups are insurance against these disasters.

Types of backups

Common backup approaches include:

• Cloud backup — Data stored on remote servers accessed via the internet. Protects against local disasters like fire or theft.
• Local backup — Copies on external hard drives or USB drives. Quick to access but vulnerable to the same disasters as your main computer.
• Automatic backup — Software that backs up data on a schedule without manual intervention.

Backup best practices

Follow these guidelines to protect your data:

• Back up regularly—daily for active businesses
• Keep at least one backup offsite or in the cloud
• Test your backups periodically to ensure they actually work
• Use cloud-based invoicing software that automatically backs up your data