When creating an emergency preparedness plan, business owners must not overlook one critical area: financial records. Safeguarding tax documents, insurance policies, and valuable inventory can make a huge difference when recovering from a disaster or unexpected emergency.
Update Your Emergency Preparedness Plan Annually
Personal and business situations change. That’s why reviewing your emergency plan at least once a year is key. The website Ready.gov offers updated resources and checklists to help you stay organized and prepared for natural disasters, fires, or cyberattacks that could disrupt normal operations.
Store Electronic Copies of Key Documents
Make digital backups of critical documents like tax returns, bank statements, and insurance forms. Many institutions already offer paperless options. If originals are only available as hard copies, scan and save them securely—either on a USB drive or in the cloud. This ensures fast access to vital information when physical documents may be inaccessible or damaged.
Document Your Valuables
Take photos or videos of your business assets before disaster strikes. This not only helps with insurance claims but also supports tax relief filings. The IRS provides a disaster loss workbook to help you compile a detailed room-by-room list of belongings. These records should also be included in your overall emergency preparedness financial records checklist for added protection.
Understand Tax Relief for Disaster Situations
If you’re affected by a federally declared disaster, tax relief options are available. Visit the Around the Nation section of IRS.gov and select your state to view details. Many affected taxpayers receive automatic filing and payment extensions, without needing to contact the IRS.
For more guidance, review Publication 547, which covers casualties, disasters, and thefts. This can be a critical resource during recovery.
Recovering Lost Tax Documents
Lost essential documents? Use the IRS Get Transcript tool, file Form 4506, or call 800-908-9946 to get copies of your previous returns. For disaster-specific help, call the IRS Special Services Hotline at 866-562-5227 to speak with a trained specialist.