Financial fraud is on the rise. As a business owner, you need to do everything in your capacity to protect your business from such risks. Poor business decisions, mismanagement, and failure to take fraud seriously can lead to great monetary loss for your company. But there are ways to prevent fraud from penetrating your business.
Here are six ways to protect your business from financial loss, courtesy of TPI Group:
#1: Cyber Protection
Make sure you have updated and installed anti-virus software and firewalls on all your computers. Be aware of fraudulent emails from financial institutions and service providers. Ensure your employees are hypervigilant about the emails they open and the websites they visit while at work. Change your passwords every few months and keep your network servers behind locked doors.
#2: Hard Copy Documents
Protecting both your hard and soft copies is essential. Printed financial statements and other sensitive papers in the form of cheques, emails, credit cards, etc. should be stored and secured. When dealing with financial documents, opt for soft copies as they are an option nowadays with most financial institutions.
#3: Secure Banking Services
Opt for secure online banking services. Online services include various levels of online security in terms of account transfers and payment management. Online banking services allow you to check your account activities regularly and have immediate access to payment histories. You can monitor your spending and reduce the risk of any financial loss. You’ll have an audit trail of all transactions and be able to also manage and schedule your payments.
To protect your business against forgery, robbery, embezzlement, and credit card fraud, we recommend getting fidelity insurance. Opting for this type of insurance can protect you against all forms of employee dishonesty, such as misappropriation of funds, forgery, and theft.
#5. Relationship with Suppliers
If your business involves suppliers, having a healthy and positive relationship with them is essential. Failure to make full payments on time may not only ruin your relationship with your current suppliers but it might also create a negative image of you and your business in the market. Maintaining these positive connections with your suppliers may involve taking out loans to ensure you pay your invoices on time.
#6: Protect Cash Reserves
Despite the plastic money world we live in, a cash reserve may just be the secret of avoiding financial loss. Keep your cash reserves tucked securely behind a safe at your bank. Your money will be safely kept in a place where it is insured against any loss in case of theft.
A small discrepancy in securing and protecting your business can pose a threat to your entire enterprise. Sometimes the loss is great. Other times—like in the case of fraud—small, indiscernible amounts can go missing over long periods of time to avoid detection. Staying on top of your finances and putting strict security measures in place can help you avoid major economic problems.
For professional accounting services, contact TPI Group today!