Yep, lots of small firms, one man bands, etc., are prettily shoddily run. I'm an accountant, and we have at least a handful of clients every year who can't provide their book-keeping, spreadsheets, or invoices, because "their laptop died" or they "lost their phone", or "forgot the password" or other such incompetent nonsense! You have to live it to believe it.
That's despite us constantly reminding them to do backups, set up online storage, etc., constantly.
And yes, still have a few dinosaur clients using a desktop PC that looks like it's from the 80s running standalone systems like invoicing, stock control, etc., "because it works" and they're too tight to upgrade or too lazy to transfer data from an old system to a new one!
And yes, some still use hand written analysis books too!
For any new clients, we insist on them using proper cloud-based accounting software or we won't take them on as clients, but older clients who've been with us for 20/30 years just won't budge. Some even "explain" it's because they don't want to pay £30 per month for the subscription!
Some of these employ staff and probably break every employment law and H&L law, but they, and their staff, are in a "comfortable rut" so just rub along OK for whatever reason.
I'd never work in a small/private firm again, and made sure I got that message over to our son when he was job hunting at University for his first graduate job! There's just something awful about working day in, day out, with the person who is paying your wages. At least with bigger firms, there's a degree of separation between who owns the firm (whose money your wage comes from) and the people running it who are your direct bosses (employed managers etc) which provides a modicum of professionalism.