The IRS requires businesses (and individuals) to provide records to prove they are entitled to their  tax deductions. You also need to have business records that support or prove expenses for deductions in case you are audited.  You will need to attempt to reconstruct those lost business records. You’ll want to try to get:

Copies of invoices from suppliers, dating back at least one calendar yearPictures or videos of buildings, equipment, and inventoryCopies of business bank statementsThe previous year’s federal, state, and local tax returns

If you, your business, or your business records are in a federally declared disaster area, you might be able to delay filing your tax returns while you try to recover your documents.  After a disaster you’ll want to take photographs or videos of the damage as soon as possible. You’ll also want to try to reconstruct the fair market value of any real property, physical property, or vehicles. If you have insurance or are eligible for help from the government, you should file a claim for assistance as soon as possible so your losses are documented. 

Documenting Business Losses 

You will need your asset records to document the losses to business assets, including vehicles, equipment, furniture, and fixtures. You can report casualty losses on your business or personal tax return. IRS Publication 547 describes the process for determining deductions for losses, the after-tax loss, and the reduction in fair market value. You can apply for assistance with FEMA or try to get a disaster loan from the Small Business Administration.

Protecting Business Records From Disaster

Of course, the best way to assure that your business records survive a disaster is to protect them before the disaster strikes. Keep physical copies of your records in a safe place outside of your business. Back up your records online as well.

What to Do Before Disaster Strikes Your Business

Make sure you know what types of disasters can occur where your business is located. That way you’ll know which precautions to take. For example, if there is frequent flooding in your area, you may want to keep any important records on the top floor of your business.  As a general rule, all small businesses should have secure physical and digital copies of their records. They should also make sure to preserve documents for as long as is required by the IRS.