Server shock – what happens when you don’t have a proper plan for your data

In this article, Jon Cooper describes the chaos that can be unleashed if you don’t have a plan to connect and back up client information. He also explains what you can do to help prevent such nightmare scenarios.

It’s never a good sign when everything goes quiet.

But the whirring fans in your server have stopped; disaster has struck.

Moments later, a ripple of confusion passes across your teams as your digital systems grind to a halt.

What do you do now?

When a server breaks in an accounting firm, client data is on the line

In this scenario, we’re going to imagine there’s no backup plan. You’re stranded right now. With your teams out of action, all you can do is think on your feet.

You call an IT firm and arrange an expensive, emergency callout.

They name their price and explain that they will “do what they can”. It’s not encouraging, but all you can do is wait for them to arrive.

What’s happened to your data?

In the meantime, your server has turned into Schrödinger’s box. When did it last back up? Is all your data there, or has everything been erased? If IT gets access, will you even know if something is missing?

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

Your reputation is now at stake

At the moment, nobody is working, except for a couple of people on the phones with clients. You can hear them dancing around what’s happening. You have to be truthful, but if you say something the wrong way, the client might look elsewhere. Any negative word of mouth will have a life of its own.

Needless to say, that’s not the only issue right now.

While your server is down, nobody is a fee earner

While you wait for a fix, your firm is leaking money. Most people you employ are fee earners, seeking to bill six to seven hours a day. Now, all that has stopped.

Even if you can retrieve the data, everyone will be on the back foot. Because even if it seems like everything is okay, nobody will feel confident that’s the case. Vast amounts of time will be spent double-checking data in the weeks to come.

Could this situation have been even worse?

If your server gives up due to age, you’re lucky. That means you had plenty of warning, and maybe there’s a fighting chance of getting your data back.

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

One is hackers. Up to 60% of breaches are caused by unpatched software, which includes the kind running on your server.

Unfortunately, the list of dangers goes on.

A word about other server-side disasters

Floods and fires, and other natural disasters, are also a particularly unpleasant pitfall. These can simultaneously destroy the server and any other on-site backups that you have.

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

What does a backup plan for an on-premises server look like?

If you flip the script on this scenario, you are firmly in the realm of Operational Excellence. You have strategies, people and processes in place. You measure risk and watch for changes in your software and hardware.

In short, you have a plan.

Here are some of the main areas you need to think about, should you use on-premises hardware to store data.

1. Identify critical data and recovery goals – Decide which systems and files are essential for 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 can’t emphasise this enough. If you are maintaining a server, you need an IT professional to run regular checks. If they’re an external business, be prepared to pay, but it’s wise to ensure there’s an SLA and appropriate money set aside for emergency callouts.
3. Layered backups – Use a mix of full backups (all data) and incremental backups (just changes to data) to save time and storage while ensuring complete protection. Don’t keep these backups in the same building, in case there is a flood, fire or break-in.
4. Failover options – Prepare for quick recovery by using virtual machines or mirrored servers. If your main server fails, you can switch to a backup system with minimal downtime.
5. Regular testing – Backups only matter if they work. Schedule disaster recovery drills and verify that your backups can be restored without errors. Run scenarios with responsible staff. Who should make calls in an emergency, and who are the contacts?
6. Compliance and security – Make sure your backup process meets GDPR and industry standards. Encrypt sensitive data and control access to prevent breaches.

What other data mishaps could be costing you money?

We’ve focused a lot on servers so far, but there are other ways your data management can be losing you money.

If your software system is messy, it will soak up chargeable time like a sponge. When every solution you use – from tax to practice management – has its own sign-in and database, you’re constantly putting the brakes on as you switch jobs.

Tangled software is a risky business

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

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

So it seems your software needs an action as well as your servers.

A software action plan means a full audit

An Operational Excellence approach would want every software solution documented and all systems connected. If you’re hoping to keep your current disparate systems, that means you need to thoroughly audit your software. See what can be connected, what duplicates functions and what is breaking processes. Then you may need to have some IT specialists check to see if it is possible to connect what you wish to keep.

Thankfully, there is a much easier answer to all this. There’s a way to prevent on-prem server nightmares and disconnected software.

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

If all the above doesn’t cause sleepless nights, nothing will. So, what if most of your data strategy and processes can be looked after using one complete platform? IRIS Cloud Accountancy Suite protects your data and works as one connected system.

1. Use secure cloud hosting
   Say goodbye to that ageing server in your office. Your data lives in professionally managed, ISO 27001-certified data centres. That means no more risk from hardware failure, floods, or fires.
2. Access automated backups
   Have a disaster recovery plan that’s built in. Backups run automatically and are stored in multiple locations. If something goes wrong, we can restore 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 firm gets flooded or you’re crossing the country to see a new client.
4. Power your firm’s work with a synced-up database
   There’s no more wasted time as you switch between apps or manually move data. All your compliance tools (tax, accounts, practice management) connect in one platform.
5. Peace of mind built in
   You’re protected against unpatched software vulnerabilities and legal risks. Regular updates, encryption, and GDPR compliance are standard.
6. No more hardware headaches

If a computer breaks, there are no costly emergency callouts. Just switch to a different computer while you get your hardware fixed. Server-side, cloud firms have staff on site at all times and are quick to fix something should it need maintenance.

Discover more: take a look at what our systems can do for you

Click here to discover more about IRIS Cloud Accountancy Suite.

Jon Cooper is A Senior Product Marketing Partner at IRIS, where he helps connect software and services to the real needs of accountancy firms. Having spent 10 years in practice running a team of accountants and bookkeepers, he knows first-hand the pressures firms face, and he is passionate about making their lives easier through more innovative technology and resources.