Business Continuity Planning Beyond Backups

Many accounting firms believe that having daily backups means they are prepared for a cyberattack, server failure, or office outage. Unfortunately, backups alone do not ensure your firm can continue serving clients when unexpected disruptions occur.

A comprehensive Business Continuity Plan (BCP) goes beyond protecting data. It defines how your accounting firm will maintain operations, communicate with employees and clients, restore critical systems, support remote work, and recover quickly from incidents such as ransomware, internet outages, hardware failures, power interruptions, or natural disasters.

For accounting firms throughout Los Angeles County and Greater Los Angeles, where client deadlines, tax filing schedules, and regulatory obligations leave little room for downtime, business continuity planning is no longer optional. It is a critical component of operational resilience.

Why Business Continuity Matters for Accounting Firms

Accounting firms operate under strict deadlines and manage some of the most sensitive financial information of any professional services organization.

A disruption lasting only a few hours can have significant consequences, including:

• Missed tax filing deadlines.
• Delayed payroll processing.
• Interrupted client communication.
• Lost billable hours.
• Reduced employee productivity.
• Damage to client trust.
• Increased regulatory and contractual risk.

Unlike many businesses, accounting firms cannot simply “pause operations” during busy seasons.

Whether your office is located in Downtown Los Angeles, Pasadena, Burbank, Long Beach, Santa Monica, Torrance, or Century City, your clients expect uninterrupted service regardless of unexpected events.

Why This Matters

Technology failures rarely occur at convenient times.

The firms that recover most effectively are not necessarily those with the newest technology. They are the ones that prepared before an incident occurred.

Backups vs. Business Continuity: What’s the Difference?

One of the most common misconceptions among accounting firms is assuming backups and business continuity are the same thing.

They are not.

A backup protects information.

A business continuity plan protects your business.

Understanding the distinction helps leadership make better technology and operational decisions.

Backups answer the question:

• “Can we recover our data?”

Business continuity answers the more important question:

• “Can we continue operating?”

Why This Difference Matters

Imagine your accounting firm’s backups successfully restore every file after a ransomware attack.

That sounds like success.

But consider these questions:

• How long will restoration take?
• Can employees continue working during recovery?
• Can clients still contact the firm?
• Can partners access Microsoft 365?
• How are payroll deadlines handled?
• Who communicates with clients?
• What happens if internet service remains unavailable?

If these questions don’t already have documented answers, your firm has backups but it may not have business continuity.

The Five Pillars of Business Continuity

A resilient accounting firm builds its continuity strategy around five interconnected areas.

Together, these pillars help reduce downtime and improve operational resilience.

Pillar #1 — Protect Critical Business Systems

The first priority is identifying which systems are essential to daily operations.

Typical examples include:

• Tax preparation software
• Practice management systems
• Microsoft 365
• Secure client portals
• Document management systems
• Payroll applications
• Accounting databases
• Network infrastructure

Every critical system should have documented recovery priorities.

Not every application requires the same recovery timeline.

For example, restoring email may be significantly more urgent than restoring archived file storage.

Executive Planning Tip

Rather than asking,

• “What systems do we have?”

Ask,

• “Which systems must be operational within the first four hours after an outage?”

That single question often changes how firms prioritize recovery planning.

Pillar #2 — Define Recovery Objectives Before an Incident

Every business continuity plan should establish realistic recovery goals before an emergency occurs.

Without defined recovery objectives, teams are forced to make critical decisions under pressure, often leading to confusion, inconsistent communication, and longer downtime.

Two key metrics should be documented for every critical business system.

Recovery Time Objective (RTO)

Recovery Time Objective (RTO) is the maximum acceptable amount of time a system can remain unavailable before it significantly affects business operations.

Examples include:

• Microsoft 365: 2–4 hours
• Client portal: 4 hours
• Tax preparation software: 4–8 hours
• Archived file storage: 24 hours

Recovery Point Objective (RPO)

Recovery Point Objective (RPO) measures how much data loss the business can tolerate.

For example:

• An RPO of 15 minutes means backups or replication should ensure no more than 15 minutes of work is lost.
• An RPO of 24 hours means losing one day’s worth of data may be acceptable for less critical systems.

The lower the RPO, the greater the investment typically required in backup technologies.

Why This Matters

Not every application requires the same recovery timeline. Prioritizing systems according to business impact allows firms to allocate resources more effectively and recover the most critical services first.

Decision Table: Setting Recovery Priorities

Recovery objectives should be tailored to your firm’s operational requirements and client commitments.

Pillar #3 — Enable Secure Remote Work

Business continuity is no longer limited to recovering systems.

It also includes ensuring employees can continue working securely when they cannot access the office.

Events that may require remote operations include:

• Severe weather
• Building maintenance issues
• Internet outages
• Public health events
• Cybersecurity incidents
• Regional emergencies

Your continuity plan should document how employees will securely access:

• Microsoft 365
• Accounting applications
• Secure client portals
• Shared documents
• Collaboration platforms
• Practice management systems

Security controls such as Multi-Factor Authentication (MFA), Conditional Access, device encryption, and endpoint protection should remain in effect regardless of where employees work.

Executive Planning Tip

Test remote work capabilities periodically. A continuity plan that has never been exercised may not perform as expected during an actual disruption.

Pillar #4 — Create a Business Communication Plan

When an unexpected disruption occurs, communication becomes just as important as technology recovery.

Without a documented communication plan, employees and clients may receive inconsistent information, increasing confusion and reducing confidence.

A communication strategy should identify:

• Who declares an incident.
• Who communicates with employees.
• Who communicates with clients.
• Who contacts vendors.
• Who works with the Managed IT Services Provider.
• Who approves public statements if necessary.

The plan should also define alternative communication methods in case primary systems are unavailable.

Examples include:

• Mobile phones
• SMS notifications
• Alternative email accounts
• Collaboration platforms
• Emergency contact lists

Why This Matters

During a disruption, clients are often more understanding when they receive timely and transparent updates. Clear communication helps preserve trust even when systems are temporarily unavailable.

Pillar #5 — Test, Review, and Improve

A business continuity plan should never remain static.

Business operations, technology platforms, cybersecurity threats, and staffing all change over time.

Without regular testing, even well-documented plans can become outdated.

Recommended activities include:

• Annual business continuity reviews
• Quarterly backup restore tests
• Disaster recovery simulations
• Remote work exercises
• Incident response tabletop discussions
• Documentation updates after significant technology changes

Testing helps identify weaknesses before they become operational problems.

Key Insight

The goal of testing isn’t to prove the plan is perfect. It’s to discover gaps while there is still time to improve them.

Sample Business Continuity Timeline

The following example illustrates how accounting firms can strengthen resilience over a 12-month period.

This phased approach helps firms make measurable progress without overwhelming staff or budgets.

Business Continuity Maturity Model

Every accounting firm is at a different stage of operational preparedness.

Use the following model to assess your current level of maturity.

The objective is continuous improvement rather than perfection.

Business Continuity Planning Checklist

Review this checklist with your leadership team.

Critical Systems

☐ Inventory all business-critical applications.

☐ Prioritize systems based on operational impact.

☐ Document Recovery Time Objectives.

☐ Document Recovery Point Objectives.

Technology

☐ Backup strategy reviewed.

☐ Backup restoration tested.

☐ Microsoft 365 secured.

☐ Remote access validated.

☐ Internet redundancy evaluated.

Business Operations

☐ Communication procedures documented.

☐ Employee contact information verified.

☐ Vendor contact information updated.

☐ Incident response roles assigned.

Continuous Improvement

☐ Annual continuity review scheduled.

☐ Disaster recovery exercise completed.

☐ Technology roadmap updated.

☐ Lessons learned documented.

“A backup may recover your files. A business continuity plan protects your ability to serve clients, meet deadlines, and keep your accounting firm operating when the unexpected happens.”

Why Business Continuity Matters in Los Angeles

Accounting firms across Los Angeles County and Greater Los Angeles face a variety of operational risks, from localized power outages and internet service disruptions to cybersecurity incidents and office accessibility issues. Many firms also support hybrid teams working across multiple locations throughout Southern California.

A business continuity plan should reflect these realities. Rather than focusing only on technology recovery, it should address how employees will continue serving clients, communicating with one another, and maintaining productivity regardless of where they are working.

For firms operating in a competitive market with time-sensitive client commitments, resilience is more than a technical objective. It is a business advantage.

Real-World Planning Scenario

How a Los Angeles Accounting Firm Strengthened Business Continuity Before an Emergency

A mid-sized accounting firm in Los Angeles County had invested in daily backups for years and believed it was well prepared for any technology disruption. During an annual IT strategy review, however, leadership asked a simple question:

“If our office became unavailable tomorrow, how quickly could we continue serving clients?”

The discussion revealed that while backups existed, several critical operational questions had never been formally addressed.

For example:

• Which applications should be restored first?
• Could every employee securely work remotely?
• Who would communicate with clients during an outage?
• Had backup restoration ever been tested?
• Were Recovery Time Objectives documented?
• Who would coordinate with software vendors and the Managed IT Services Provider?

Rather than waiting for an actual emergency to expose these gaps, the firm developed a comprehensive Business Continuity Plan that included documented recovery priorities, communication procedures, annual testing, remote work validation, and executive reviews.

Although no major incident prompted the project, leadership gained greater confidence knowing the firm had a structured process to continue serving clients if an unexpected disruption occurred.

This scenario reflects a common reality: many accounting firms already have the technology they need but not the documented plan to use it effectively during an emergency.

Executive Resilience Framework

Business continuity is not a one-size-fits-all initiative.

Use the following framework to determine your firm’s next priority.

If Your Firm Only Has Backups

Your focus should be on moving from data protection to operational resilience.

Priority initiatives include:

• Identify critical systems.
• Define Recovery Time Objectives (RTOs).
• Define Recovery Point Objectives (RPOs).
• Verify backup restoration procedures.
• Document recovery priorities.

If You Have Basic Recovery Procedures

Expand your planning to include the people and processes that keep the business running.

Recommended initiatives include:

• Remote work readiness.
• Communication plans.
• Incident response coordination.
• Vendor contact documentation.
• Leadership responsibilities.

If Your Continuity Plan Is Documented

Validate it regularly.

Priority initiatives include:

• Annual continuity reviews.
• Quarterly backup restore testing.
• Disaster recovery simulations.
• Tabletop exercises.
• Lessons-learned documentation.

If Your Firm Is Highly Mature

Shift the focus from recovery to resilience.

Areas for continuous improvement include:

• Automation of recovery procedures.
• Cloud resiliency.
• AI-assisted incident response.
• Continuous cybersecurity improvements.
• Operational analytics.
• Executive continuity reporting.

Conclusion

Business continuity is about much more than recovering files after an outage. It is about ensuring your accounting firm can continue serving clients, supporting employees, and meeting critical deadlines regardless of the disruption.

For firms throughout Los Angeles County and Greater Los Angeles, where tax deadlines, payroll schedules, and client expectations leave little room for downtime, continuity planning should be viewed as a core business function rather than an IT project.

Backups remain an essential component of resilience but they are only one piece of a broader strategy that includes documented recovery objectives, secure remote work, communication planning, regular testing, and executive oversight.

The firms that recover most effectively are rarely the ones that simply own the right technology. They are the ones that prepared before they needed it.

Would your accounting firm be able to continue serving clients if your office, network, or critical systems became unavailable tomorrow?

Fothion helps accounting firms throughout Los Angeles County and Greater Los Angeles evaluate operational risks, develop practical Business Continuity Plans, and implement technology strategies that reduce downtime and strengthen long-term resilience.

A business continuity assessment can help your leadership team identify gaps before they become business interruptions.

Book a 30-minute call with Fothion: https://www.fothion.com/schedule-a-phone-call/

 

• Frequently Asked Questions

• Isn’t having backups enough?
• No. Backups help recover data, but they do not define how employees continue working, how clients are supported, or how critical business operations resume during a disruption. A business continuity plan addresses those broader operational questions.

• What’s the difference between disaster recovery and business continuity?
• Disaster recovery focuses on restoring technology and data after an incident. Business continuity focuses on keeping the entire business operating, including people, processes, communications, and client service.

• How often should a business continuity plan be tested?
• At a minimum, accounting firms should review their business continuity plan annually and test backup restoration procedures quarterly. Significant technology or staffing changes should also trigger a review.

• What are Recovery Time Objective (RTO) and Recovery Point Objective (RPO)?
• Recovery Time Objective (RTO) is the maximum acceptable amount of downtime for a system. Recovery Point Objective (RPO) defines the maximum amount of data loss the business can tolerate. Together, these metrics help prioritize recovery efforts.

• Who should be involved in business continuity planning?
• Business continuity is a leadership initiative. Managing partners, firm administrators, IT leadership, department managers, and the Managed IT Services Provider should all contribute to planning, testing, and ongoing reviews.

• Does business continuity only apply to cyberattacks?
• No. A continuity plan should address many types of disruptions, including internet outages, hardware failures, power interruptions, building closures, natural disasters, and other operational events that could affect client service.

• Can cloud applications eliminate the need for business continuity planning?
• Cloud platforms improve resilience, but they do not eliminate the need for planning. Firms still need documented procedures for communication, remote work, vendor coordination, and recovery priorities if cloud services become unavailable or users lose access.

• Is business continuity planning included in Managed IT Services?
• Many strategic Managed IT Services Providers assist with continuity planning, disaster recovery, backup management, testing, and ongoing reviews. Firms should understand exactly which continuity services are included in their agreement.