Server shock – what happens if you don’t have the right plan for your data

In this article, Jon Cooper explains the chaos that can occur if you don’t have a plan for connecting and backing up client information. He also explains what you can do to help prevent this nightmare scenario.

It’s not a good sign if everything goes quietly.

But the fan spinning on your server has stopped; disaster has struck.

Moments later, a wave of confusion washes over your team as your digital systems crash.

What are you doing now?

When a server goes down at an accounting firm, client data is at stake

In this scenario, we would imagine there is no backup plan. You’re stranded now. In the absence of your team, all you can do is think for yourself.

You call the IT company and arrange an expensive emergency call.

They named the price and explained that they would “do what they can.” It’s not encouraging, but all you can do is wait for them to arrive.

What happened to your data?

Meanwhile, your server has turned into a Schrödinger box. When was it last backed up? Is all your data there, or has it all been deleted? If IT gets access, will you know if something is missing?

There’s also something else on your mind: clients.

Your reputation is now at stake

Currently, no one was working, except for a few people who were on client calls. You can hear them dancing around what’s going on. You have to be honest, but if you say something the wrong way, the client may look elsewhere. Any negative word of mouth will take on a life of its own.

Of course, that’s not the only problem right now.

When your server goes down, no one gets paid

While you wait for repairs, your company is leaking money. Most of the people you hire are earners, who want to bill six to seven hours a day. Now, all that has stopped.

Even if you can retrieve the data, everyone will be at a disadvantage. Because even if everything seems fine, no one can be sure that it is. A lot of time will be spent rechecking the data in the coming weeks.

Could this situation get worse?

If your server is giving up due to age, you’re in luck. That means you’ve had plenty of warning, and there may still be a chance to get your data back.

Hardware failure accounts for up to 44% of data loss incidents, but it’s not the only risk. There are much worse ways for your server to be compromised.

One of them is a hacker. Up to 60% of breaches are caused by unpatched software, including software running on your servers.

Unfortunately, the list of dangers continues to grow.

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A word about other server side disaster

Floods, fires and other natural disasters are also very unpleasant disasters. This can simultaneously destroy the server and other backups you have on site.

So the question is: do you have a contingency plan?

What does the backup plan for the local server look like?

If you reverse this scenario, you are already in the realm of Operational Excellence. You have strategy, people, and processes. You measure risk and watch for changes to your software and hardware.

In short, you have a plan.

Here are some key areas you need to think about, if you’re using local hardware to store data.

1. Identify critical data and recovery goals – Decide which systems and files are important to your business. Set clear targets for how quickly you need to recover and how much data you can afford to lose.
2. Have IT on speed dial – We cannot stress this enough. If you maintain servers, you need an IT professional to perform regular checks. If they’re an external business, be prepared to pay, but it’s best to make sure there’s an SLA and enough funds set aside for emergency calls.
3. Layered backup – Use a combination of full backup (all data) and incremental backup (only changes to data) to save time and storage while ensuring complete protection. Do not store this backup in the same building, in case of flood, fire, or break-in.
4. Failure option – Prepare for fast recovery by using virtual machines or mirror servers. If your primary server fails, you can switch to a backup system with minimal downtime.
5. Routine testing – Backups only matter if they work. Schedule a disaster recovery drill and verify that your backup can be restored without errors. Run scenarios with responsible staff. Who should make the call in an emergency, and who are the contacts?
6. Compliance and security – Make sure your backup processes meet GDPR and industry standards. Encrypt sensitive data and control access to prevent breaches.

What other data errors can cost you money?

We’ve focused a lot on servers so far, but there are other ways that managing your data can work against you.

If your software system is a mess, it will eat up your rechargeable time like a sponge. When every solution you use – from tax to practice management – ​​has its own login process and database, you’re constantly hitting the brakes when changing jobs.

Tangled software is risky business

Worse yet, a poorly planned software system leaves you at risk. The more often you manually move data between different applications, the more likely it is that hackers will find a way to break into your system. Think about spreadsheets and their vulnerabilities, for example, or email if you’re sending information back and forth.

If you’re more careful, this often means retyping the data, although that invites errors or a lot of double-checking.

So it looks like your software needs action and so does your server.

A software action plan means a full audit

The Operational Excellence approach wants every software solution documented and all systems connected. If you want to maintain a disparate system today, that means you need to thoroughly audit your software. See what can be connected, what duplicate functions are, and what breaks the process. Then you may need to ask some IT experts to check if it is possible to connect what you want to keep.

Luckily, there is an easier answer to all of this. There are ways to prevent local server nightmares And disconnected software.

Discover the IRIS Cloud Accounting Suite

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A better, simpler answer to data management: a fully connected cloud system

If all of the above doesn’t cause sleeplessness at night, then nothing will. So, what if most of your data strategies and processes could be managed using one complete platform? IRIS Cloud Accountancy Suite protects your data and functions as one connected system.

1. Use secure cloud hosting
   Say goodbye to old servers in your office. Your data resides in a professionally managed, ISO 27001 certified data center. This means there is no longer any risk of hardware failure, flooding or fire.
2. Access automatic backup
   Have a disaster recovery plan built in. Backups are performed automatically and stored in multiple locations. If something goes wrong, we can recover your data quickly, reducing downtime and stress.
3. Enjoy real-time data from anywhere
   Staff can work securely from any location, on any device with an internet connection. Accounting doesn’t have to stop if your company is flooded or you’re crossing the country to meet new clients.
4. Strengthen your company’s work with a synchronized database
   No more wasted time switching between apps or moving data manually. All your compliance tools (tax, accounts, practice management) are connected in one platform.
5. Peace of mind is embedded in it
   You are protected from unpatched software vulnerabilities and legal risks. Regular updates, encryption, and GDPR compliance are standard.
6. No more hardware headaches

If the computer breaks down, there are no expensive emergency calls. Just switch to another computer while you repair your hardware. On the server side, cloud companies have staff on site at all times and are quick to fix things if they need maintenance.

Find out more: see what our system can do for you

Click here to find out more about IRIS Cloud Accountancy Suite.

Jon Cooper is a Senior Product Marketing Partner at IRIS, helping connect software and services to the real needs of accounting companies. Having spent 10 years in practice leading teams of accountants and bookkeepers, he knows firsthand the pressures companies face, and he is passionate about making their lives easier through more innovative technology and resources.