September is National Preparedness Month
We have entered the 2021 hurricane season and have already endured tremendous loss with extensive damages from hurricane IDA. In addition to the storms and floods, there are other natural disasters happening such as wildfires on the west coast.
In response, citizens are encouraged to develop some level of an emergency preparedness plan. Oftentimes, we focus on things like flashlights, generators, food, water, first aid kits etc. These are the main and most essential necessities in disaster planning; however, we must take it a step further and safeguard our important documents.
In life-threatening situations, there can be very little time in the process to focus on retrieving important items such as medical records, key identification or even tax documents. Since September is declared “National Preparedness Month”, take some time if you haven’t done so as yet to make a plan or re-evaluate your existing one.
In the aftermath of the disaster, these important documents will be very crucial in order to apply for financial relief or reclaiming property. Major events like hurricanes that force people out of their homes can oftentimes cause separation of households and family members.
The following are a few tips to consider in your planning:
- Secure Storage – Consider keeping your major items such as birth certificates, medical records, passports, social security cards, property deeds and tax records in waterproof containers. Keeping them in a fireproof cabinet or safe is even more ideal. If possible, have a set stored with a trusted person.
- Scan or make electronic versions – As an alternative to making photo copies, it may be best to scan some documents, save to USB devices or even a CD. Just keep in mind that these devices should also be kept in a safe place where they are easily accessible.
- Cloud Storage – With the advance of technology, cloud storage is also another viable option for some important records. This method provides a bit more security and is also easily portable.
It is painful enough to have any part of your home or property damaged during a disaster but it can ease the burden to know that you have access to your important records. In order to submit claims for insurance reimbursements or to request federal disaster relief, you most likely will need to produce some of these documents.
Document reconstruction is a painstaking resort when records are destroyed in a disaster such as fire or flood. At times, it may be the only option. For example, the IRS can provide transcripts of tax records. You can visit their website and use the Get Transcript Tool @ https://irs.gov
Business owners are also advised to take measures to secure their business documents to safeguard against loss from disasters. One of the pluses of operating in a technological age is the ability to rely on cloud storage. For example, accounting and tax records can be easily accessed wherever there is a connection to the internet.
For businesses that still rely heavily on paper, there is no better time than the present to make the transition to a more reliable form of electronic record-keeping.
For more tips on protecting your personal and business records against loss or damages from disasters, you may access the IRS’s website @https://www.irs.gov/pub/irs-pdf/p2194.pdf
To manage your business accounting or personal finances, please visit our website’s services page.
SLS Accounting & Business Consulting Services provides year round individual tax services (income tax preparation & tax resolution). We also offer bookkeeping and business advisory.
Our practice is fully remote for your convenience and we are ready to partner with you to solve your complex business problems. We are an IRS approved E-file provider and tax services are provided by an Enrolled Agent.
To schedule a complimentary introductory call, please visit us @ https://slsaccountingsvcs.com