However, I do run a paperless office. Technically, I'm not entirely paper-free. But, it's about 95% paper free. That means that all my client files, financial information, personal information, insurance papers, tax papers and medical information are all electronic.
Two days ago my external hard drive died.
Most of my files are on my actual computer drive, though I rarely access them through the C: drive. I also have all my important files in the cloud, in Drop Box. Normally, I access my files through this system of storage such that whenever I edit a file, it automatically updates in the cloud. I also backed up everything on my external drive on a weekly basis. And, just for good measure, I have a Crash Plan account, too. Crash Plan is also cloud-based and backs up all my files every few minutes. I don't access or edit files in Crash Plan, however, as it's meant for storage purposes only. Think worst-case scenarios here. Like, my computer is stolen and smashed the same day that Drop Box up and crashes. Fingers crossed that never happens! I'd then be able to recover all my files on Crash Plan from the last back-up it did from my computer.
Fortunately, when my hard drive died, it wasn't too big a deal. All I have to do is get a new one and properly recycle the other. Back, back, back it up!