As a business owner, it’s important that your business maintains a positive cashflow. However, there are circumstances that complicate your business finances forcing you to protect it. Here are a few tips on how you can protect your business funds.
Separate Business and Personal Finances
Create a separate account to keep your business funds. This will maintain clarity and simplify record keeping, protecting both your personal and business assets in case of liabilities.
Establish Strong Internal Controls
Implement strong internal controls within your business to avoid unauthorised access and fraud. Allocate duties to your staff and maintain strict and regular financial audits of the transactions.
Establish Strong Bookkeeping Practices
Make sure your financial records are accurate and up-to-date by implementing strong bookkeeping practices. Regularly record your financial transactions, reconcile accounts, and organise financial documents. This will help monitor finances, identify discrepancies and aid with audits and disputes.
Keep a close eye on your business funds. Ensure you have sufficient funds to cover your debts and expenses. Always review your accounts and cash reserves to identify possible issues.
Protect Your Assets
Protect your cash, inventory, and business equipment by using strict security measures like alarms, CCTVs, safes, etc. Safeguard digital assets using encryption, firewalls, and strong passwords. Educate your employees about security practices to prevent theft or unauthorised access.