The recent fire in downtown Raleigh has once again reinforced the need for businesses and individuals to have  a disaster preparedness plan. According to the Federal Emergency Management Agency, nearly 40% of small businesses close after a disaster. Why? Because nearly 75% of small businesses do not have a disaster recovery plan in place, according to a survey by Nationwide.

As a business, do you know how long it would take for you to be up and running again?  Are your company files backed up offsite or on the cloud?  Is someone in charge of communicating with your employees on where or if to report to work? A proper disaster preparedness plan should address these issues and ensure that your business will not become another statistic.

For families, a disaster preparedness plan is equally important. Most people are at least aware that they should have a safe meeting spot in case of a house fire or a “bug out” bag for natural disasters, as the Red Cross recommends. However, it also critical to include your financial well-being in any contingency plan. You should know where your important tax and financial documents are stored and know what to do in case anything happens to them.

Does your personal or business contingency planning make the cut? Do you have a plan? If you answered no, or aren’t sure, I can help walk you through the four-step process of contingency planning and testing. For further guidance on building an effective disaster recovery plan, please contact me at sherry@sherrymhigginscpa.com or (828) 687-1821.