The Company Vault: How to Protect your Business Finances

Your business and your income are both extremely important to you, so of course you want to protect it. It’s important to have a risk management strategy when it comes to your business finances. There are a number of protection strategies to consider, such as taking out insurance and knowing which scams to look out for.

Keep Your Data Secure

In order to protect your business against hackers and data attacks, you need to follow certain data security procedures. This is especially important if you use the Internet for banking and other financial functions. Even something as simple as ordering checks online can pose a risk if you’re not using a secure Internet connection. Keep your virus protection up-to-date and password protect sensitive data. When you do need those business checks, keep in mind that they don’t have to cost a lot of money. If you need checks for your company, order business checks online and be sure to use a secure connection.

Take Out Insurance

Business owners have a responsibility to plan for the worst. Income protection insurance and business interruption insurance will be highly valuable if you come up against hard circumstances. Businesses are highly dependent on their owners. It’s important to plan ahead of time in case you’re ever not able to work for some reason. You’ll also want to get fidelity insurance to protect your business against forgery, robbery, credit card fraud and embezzlement.

Buy Debt-Free Equipment

If you’re purchasing secondhand tools and equipment for your business, like machinery or vehicles, make absolutely sure that they’re debt-free before you buy them. If you purchase them and the original owner still owes money on them, that debt will become yours.

Protect Against Fraud

There are a number of things you can do to protect your business from fraud, including:

• Create an Emergency Management and Recovery plan
• Educate everyone in your business about fraud awareness
• Separate financial responsibilities
• Keep your check book secure
• Monitor financial activities

Work With Registered Professionals

If any business is going to provide your business with a financial product, like a loan or insurance, or if they’re even going to offer financial advice, like an accountant does, make sure that they are licensed.

Choose a Bank With Secure Online Banking

Online banking is a convenient way to manage your business finances, but it’s important to use a well-known bank that has various levels of online protection. Thanks to around-the-clock access to real-time information, you can keep a close eye on your accounts. Check your business bank accounts daily to make sure there isn’t any questionable activity.

Guard Hard Copy Documents

Your online security isn’t the only thing that matters. Even in today’s modern world, hard copy documents need to be protected, too. People can steal your checks, credit card information and mail, all of which can contain sensitive financial information. When it comes to printed financial statements and other sensitive documents, either store them somewhere safe or shred them. Also consider opting out of paper statements and getting all of your financial information online.

Check Financial Statements

Every month, you should go through your company finances. Make sure payment amounts match up to invoices and make sure there aren’t any missing documents. Every year, have your books professionally audited.

There are a number of financial situations that can have a negative impact on your business. Preventing problems is always easier than dealing with problems after they happen. Be smart about your business finances so that you can continue to run and grow a successful company.