All 26 Computerized Bookkeeping questions
More in Computerized Bookkeeping
What are the advantages of computerized over manual bookkeeping? What are some disadvantages or risks of computerized bookkeeping? What is the audit trail in computerized bookkeeping? How does accounting software handle VAT? What skills does a bookkeeper still need despite using software? What is a nominal (general) ledger code and why is it used? What is a batch versus real-time processing in bookkeeping software? How does software help with VAT returns? What does 'Making Tax Digital' (or similar digital tax rules) require? What is the chart of accounts (nominal codes) in accounting software?
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Bookkeeping › Computerized Bookkeeping

What is data backup and why is it essential in computerized bookkeeping?

Beginner

Answer

A backup is a saved copy of the accounting data that can be restored if the original is lost, corrupted, or attacked. It's essential because computerized records are vulnerable to hardware failure, deletion, and cyber-attack; regular, tested, off-site or cloud backups ensure the business can recover its financial records.
Real-world example Nightly cloud backups let the business restore its ledgers after a laptop failure with minimal data loss.

Common follow-ups: What threats do backups protect against? | Why test backups?

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All 26 Computerized Bookkeeping questions