How to manage business data
Computers are made to store information but without a good database management system, (which can be a mix of packaged software and custom-made software) retrieving information about the data can become frustrating and time consuming. A good database management system organises information in a way data is not lost, accidentally deleted or changed, or mixed up. It also allows the user to search the database and answer questions about the data.
Many businesses struggle because they do not have good database management. Their accounts are in shoeboxes and orders on bits of paper. They cannot readily access customer information and use it to forecast sales, to make budgets, or plan for the future. The data that is stored on computers is almost unusable because it is not properly ordered.
Every business needs to keep accurate financial records and to do this successfully, the business needs to keep track of orders, stocks, credits, outstanding debts, returns and refunds, spoilage, and costs. As a business grows, the size of the administrative burden of the business grows and without an adequate database management system, the business will fail to remain competitive.
Data on computers is subject to loss. CD's get scratched, hard drives can fail and have a limited life span, and viruses can infect computer hard drives and damage data.
There is no foolproof method of storing data but there are ways that risks are minimised
Firstly, make a scheduled time each week to backup your data to another computer, zip drive or CD. A daily back up is ideal but maybe unnecessary unless you have a lot of new data. The question to ask yourself, is how long will it take me to recover this lost data if it is lost today and weight this loss against the time it takes to back up the data.
As a precaution, make a hard copy print out of important information and store the backup CD or zip drive away in a secure place.
Data should at the very base minimum be stored on a database program like Access or SQL and not Excel. Excel is a spreadsheet program used for calculations, it is not a database program.
The second most important point is to never open an email attachment that looks suspicious. If the subject line is enticing but the sender is unknown. DO NOT OPEN IT. If you know the sender but the reason for the attachment is unknown. DO NOT OPEN THE EMAIL without confirming with the sender, what the attachment is. Put a virus checker on your computer, which will notify you if it thinks a file is suspicious. Computer viruses can do a lot of damage to your computer and though you may be able to re-format or get rid of the virus, time and possibly data would be lost.
Inefficient record keeping makes accounting fees high and tax time burdensome. A good database management system, not only allows you to meet the necessary statutory requirements of the taxation, privacy and trade practice Acts, but will allow you to plan where you want your business to grow and to make strategic decisions.
