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As a business owner, you know that keeping your finances in good shape is the best way to keep your company growing the way you want it to. Unfortunately, finding ways to protect your company’s finances and sensitive information isn’t always as easy as you might think. When even a single aspect of your business’s finances is compromised, your profits and bottom line may not be enough to keep your operation running smoothly. Instead of leaving it to chance, try these simple ways to protect your finances once and for all.
1. Invest in IT Services for Your Business
One of the biggest threats businesses face is due to hackers and cybercriminals. If you process orders or store customer information as well as your business’s financial data on computers at your business, that information can be intercepted with ease. The best way to protect your company from those cybercriminals is to partner with an expert in business technology services. They’ll be able to identify weaknesses in your business’s security efforts and can help you find ways to better secure your data at all times. This will reduce your risk of lawsuits while also protecting your finances for years to come.
2. Separate Personal and Business Finances
Keeping your business’s finances safe requires separating them from your personal finances as soon as you can. Doing so reduces your risk of financial audits from the IRS and protects you from losing your personal assets if your business is ever facing a liability lawsuit. Start by opening a dedicated business checking account, savings account and credit card. Use those accounts for all business-related expenses. Avoid paying for personal expenses out of that account at all times. The more you can separate your business and personal finances, the better off your company will be in the long run.
3. Keep Passwords and Information Private
It’s normal to manage your company’s financial information on the clock using company computers. However, that doesn’t mean you should make the usernames and passwords for your company’s sensitive information public knowledge. Anytime you’re done looking at sensitive information or need to step away from the computer for any reason, log out of the accounts. Only share log-in credentials with the people who truly need to know them and stay on top of changing them every few months. The more secure you can keep your passwords, the less likely it is for your business’s finances to be threatened.
4. Negotiate With Suppliers
There’s more to financial security than locking down your information. Get in the habit of shopping around for prices throughout the year. If you find a supplier that can meet your demand at a lower price than your current one, consider negotiating with your current supplier. Let them know about the price difference and see if there’s anything they can do to offer a more competitive rate. This will make sticking to your operating budget easier and allows you to continue working with suppliers you already know and trust without jeopardizing your company’s bottom line.
5. Do What You Can To Pay Down Debt
As a business owner, you likely have at least one loan or line of credit out to help finance your company’s growth. Rather than letting it sit for years on end, making only the minimum payments each month, pay it down more aggressively. If you’re not sure how, talk to your accountant and get their advice. They’ll help you establish a budget that makes paying down debt quickly not just possible, but easier. The faster you can pay down your debt, the less interest you’ll pay and the more cash you’ll have on hand to cover expenses. Once you pay down your debt, you can start saving money to cover those unexpected expenses without relying on loans in the future.
Keep these tips in mind when trying to find ways to improve your business’s financial security. When you do, you’ll keep your information safe and ensure that your company can be profitable for as long as possible.
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