Technology Tips for Essential Data Back-up

Are you using technology to back-up your essential data, your books and tax documents? 

Many micro and small businesses fail to do this and lose valuable time rebuilding data and reconstructing tax records. Larger businesses are not taking effective measures to back up and rotate on a schedule, nor protect themselves adequately against identity theft and hacking.

Do you have a system for data backup?

Data backups can be a lifeline to your company data. It’s possible to lose your data in several scenarios; bad weather, misplaced records, theft, vandalism, hacking, a key employee leaving, etc.

Restoring data can consume large amounts of time and money. Sometimes data cannot be recovered – an even bigger issue. Don’t let downtime for recovery get in the way of your daily operations. Have a backup plan and a plan to backup your backup plan.

Storing your backup data

Depending on your backup method (tapes, cloud, copies on another computer or server) create a documented plan with process and procedures noted, passwords and random accountability checks.

1. Create a system to rotate the media that is storing your data.

2. If you use cloud storage or auto backup programs have a clear understanding of what is being backed up and what is not. 
3. Know the plan to reinstate the data should the need arise.
4. Keep copies of your data offsite for another layer of protection. If all your backups are ‘at the office’ and the office gets flooded – your backup plan will have failed.

According to business writer and IT consultant Susan Ward, "The only businesses that should be keeping their data backups on-site are those with fire-proof, indestructible safes." On-site storage is fine for a limited amounts of data but most businesses will need a vault or offsite storage facility. With the high cost of office space offsite climate controlled records storage is economical and provides the best defense against data loss. 

Additional tips:

• Change passwords regularly - Hacking is becoming more and more sophisticated. Use passwords that meet security guidelines and change them regularly. 
• Install anti-malware software 
• Construct a robust firewall

Create a system to protect your data and you’ll never regret the investment of time to keep your data secure.

Do you have a favorite technology tip for data integrity to share?  Please join the conversion below.

Perceived Indifference Checklist: See if You Pass or Fail

Do you make decisions through the eyes of your customer?

Do you follow the golden rule or the platinum rule?

The Golden Rule is defined as treating others as you want to be treated. But the Platinum Rule goes a step further. It asks that you treat others as they want to be treated.

Research tells us that 7 out of 10 customers will stop doing business with you because they believe you just do not care. How many times can you say you really don’t care about your customers – just not that often.

Because of so many service and product choices your customers can easily Google up another vendor. That’s concerning so have a plan to fight perceived indifference.

First, it’s important to consider that customer’s expectations have changed over time. It’s no longer just about great service. We all now want a great, memorable experience. Loyalty to a vendor is much less important than getting what feels best for you.

A streamlined business operation should be built with careful consideration of customer satisfaction. We want to do business with businesses we know, like and trust and one that takes care of us.

Walk a mile in their shoes and Try on their rose colored glasses are two sayings to revisit and reconsider when rooting out what really matters to our best clients and prospects.

Reality is in the eye of the beholder. Get some input from customers and colleagues and create a plan that will assure your customer with the perception that you are different. You are the vendor that understands their wants and their needs and you value that.

Perceived indifference checklist

Do you answer your phone by the 2nd ring every time?

How about ask for permission to put the caller on hold?

Does anyone hold the line for more than 30 seconds?

Do you thank your customers for calling? Visiting?Do you refer to customers by their name?

Is thanking your clients for using your business a common practice?

How timely is your team for customer/client meetings?

Do you avoid making your customers wait?

Are product and services delivered when promised?

Is there a heads-up given if problems arise?

Is there a documented process for mistake and problem resolution?

Is your return phone calls/e-mails policy within the same day (within 24 hours)?

Do team members take responsibility for helping customers?

Do you ask for more information when customers ask for a quote or a price?

Is there follow up after delivery of a service or a product?

Do you stay in touch with customers regularly?

Do you ever surprise your customers with a gift?

Do you keep your customers informed about what is new in your business?

Do team members know why the customer is “king”?

Do you thank your internal customers (team members) for what they do for you and your business?

This checklist is an important tool in your sales, marketing and customer service tool kit. 

Celebrate when you can honestly answer yes and be willing to dig and investigate your customer’s experience when your answer is no to the preceding questions.

What does the DOMA ruling mean for tax payers?

Last month in United States v. Windsor, the Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional under the Due Process Clause of the Fifth Amendment. 

The 5–4 decision is regarded as a landmark case for marriage equality and civil rights under law. By deeming DOMA unconstitutional, the court has returned marriage rights to the states. If a same-sex couple legally marries in one of the thirteen states or five Native American jurisdictions where same-sex marriage is legal, the federal government recognizes the marriage and extends all the rights, privileges and benefits of marriage to the couple.

The tax implications of the DOMA ruling at the federal level are considerable. At the heart of the Windsor case was the estate tax exemption of surviving spouses, otherwise known as the inheritance tax. Because Edith Windsor’s marriage to Thea Spyer was recognized by the state of New York, Windsor applied for the surviving spouse federal exemptions that allow spouses to inherit assets and property from one another tax-free. The exemption can be applied throughout their lives and at the time of one spouse’s death. Because Section 3 of DOMA defined marriage as a union only between a man and woman, Windsor was denied the exemption and faced a $363,053 estate tax on the home she and Spyer shared. 

In addition to the rights of survivorship enjoyed by opposite-sex couples through the institution of marriage, same-sex couples may now be eligible for over 1,000 benefits at the federal level that were often denied to them under section 3 of DOMA. Same-sex married couples will now be allowed to file joint tax returns. Their status as lawfully married will also affect, immigration issues, social security tax rates, capital gains and losses, child care tax credits, elderly and disabled credits. Same-sex married couples may also be able to amend tax returns filed previously to reflect their new legal status. The statute for limitations on filing amendments to a tax return is usually three years.

The tax implications of the DOMA ruling are vast and in many instances will benefit same-sex couples that marry legally. However, same-sex couples that marry will find out what opposite-sex married couples have known for years. Namely, that the federal government penalizes married couples by creating tax thresholds that are significantly lower than that of two single earners. If the couple’s combined income exceeds the threshold they will be taxed at a higher rate than two single earners would on the same amount of income or dividends. This part of the tax code is known as the “Marriage Penalty”. 

Most same-sex couples, like their opposite-sex counterparts, probably won’t let a higher tax rate stop them from entering into marriage. In today’s society, romantic love has superseded the old ideas of marriage as a contract based on security or social status. While security and status in society still play a role, it is love that drives most people to the alter. However, once couples marry professional tax advice and financial family planning becomes even more vital to creating and maintaining a healthy financial future.

Tom Bulger, CPA specializes in estate tax law, and helping families achieve their financial goals. Give Tom a call today.

Are you engaged to be married, or a newlywed wondering about the tax implications of marriage? Post your questions below.

Check back for our next post on "Perceived Indifference" and the effect it has on retaining your business' customer base.