Backed up files are restored, bringing data back into the software, in the event the original data file becomes unusable due to file corruption or a system failure such as a hard drive crash.
Financial data should be backed up to removable media and data back ups should not be stored on the hard drive. Data back up can be stored on a CD, DVD, USB drive or to a remote backup site over the Internet.
For convenience, you can keep copies of backed up data near your computer, but an identical copy also needs to be stored away from your home or office on a regular basis (weekly or monthly). Storing data back ups off-site is necessary so that in the event of a catastrophe such as a fire or flood, your financial data will be intact. The best place to store data backups is in a safe deposit box or at the house of a trusted friend or relative, or use an online back up service to store your data off-site.
