Disaster Planning: What Every Small Business Should Do Now to Be Prepared
- MyTAXPrepOffice Editorial Group
- May 12
- 2 min read
In honor of Small Business Week, we’re highlighting smart planning strategies that help protect your business before disaster strikes.
Disasters—whether natural or man-made—can happen unexpectedly. While you can’t always prevent them, you can prepare. As a small business owner, taking a few proactive steps now could save you time, money, and peace of mind later. Let’s walk through essential tips to help safeguard your business’s financial and tax records.
1. Go Paperless with Your Record keeping
Digital record keeping is a smart and secure way to store critical business information. By scanning and saving tax documents, insurance papers, and financial statements in the cloud or on encrypted drives, you reduce your reliance on vulnerable paper files. If you must keep physical records, store them in waterproof containers and duplicate important files in a second secure location.
2. Inventory Your Assets
Take photos and videos of your office or workspace, including furniture, technology, tools, and inventory. This documentation can support insurance claims or casualty loss deductions after a disaster. The IRS offers helpful workbooks specifically designed for businesses to log and track valuable assets.
3. Know Where to Get Help from the IRS
In the event of a federally declared disaster, the IRS provides automatic tax relief—including deadline extensions for filing returns and making payments. Keep an eye on the IRS's Disaster Relief page for up-to-date information specific to your area.
4. Review Payroll Protections
If you use a payroll service provider, verify that they have a fiduciary bond. This bond helps protect you in case they default on your payroll tax responsibilities. For added protection, enroll in the Electronic Federal Tax Payment System (EFTPS). It allows you to monitor tax deposits and receive email alerts to catch any irregularities early.
Preparedness is Power
Taking these steps now can help your small business stay resilient in the face of disaster. Not only will your finances and operations be easier to recover, but your peace of mind will thank you.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
