Five Important Financial Security Tips for Your Business

financial security tips for your business

Your company's financial security should be a top priority, especially because any issues could have a detrimental impact on your reputation and profit margin. For example, the data breach that impacted Target during the holiday season has been linked to a 2 percent drop in sales, and this is definitely an indicator that consumer confidence in the retail chain has been shaken. In order to avoid issues like this, you need to take several steps to protect the financial security of your business.

1. Safeguard Your Internet Security

Without the proper Internet security measures in place, it will be relatively easy for a skilled hacker to break into your server with the intention of stealing sensitive data, including your customers' credit card numbers and any industry secrets that your competitors could benefit from. Because of this, you need to ensure that you always use up-to-date Internet security techniques such as a firewall, antivirus protection and anti-malware software.

2. Protect Your Company from Theft

Theft can impact a business in many different ways. After all, you could lose inventory or money due to your employees, shoplifters or a burglary. Therefore, you need to put several anti-theft measures in place, including a camera system and a security alarm for the building. It is also important for you to fully prosecute any individual who steals from your company.

For example, if a Minnesota-based business loses $10,000 worth of inventory due to an unscrupulous employee, they need to utilize the legal system because it provides penalties for the thief that include a fine of up to $20,000 and 10 years in prison. Keep in mind that a conviction is necessary for these penalties to be enforced, and the employee in question has the right to contact a local theft and fraud attorney to protect them such as Kevin DeVore, a Minnesota criminal defense attorney. Due to this, you will need hard evidence to help prevent the thief from getting an acquittal or reduced penalty.

3. Backup All Your Data and Information

Failure to backup all of your critical data and financial information could easily lead to catastrophic consequences if a natural disaster, equipment failure or theft causes you to lose access to consumer information and specialized templates that enable your business to operate properly.

4. Implement a Strict Password Policy

Issues such as theft can be exacerbated unless you have a strict policy in place that forces all of your employees to change their passwords on a regular basis.

Additionally, your HR department needs to immediately shut down each account that is associated with any individual who leaves the company.

5. Review Your Financial Records on a Regular Basis

It is still possible that you could suffer from a breach even with every possible security technique in place. Therefore, your financial records need to be reviewed regularly so that you can spot any anomalies quickly enough to prevent a serious catastrophe from occurring.

Putting all of these tips in place will dramatically reduce your company's risk of suffering from an expensive financial issue that could cause a mass exodus of your most valued customers. As read on the website of Kevin DeVore, a criminal defense attorney will "Help you keep evidence out of court and prevent it from being used against you if the evidence was collected illegally in violation of your rights." It is important to be able to retain all evidence possible for any case sent to court. As a business owner, any money that you will spend implementing these safety techniques is definitely a wise investment.


    • Corina Ramos

      Corina Ramos 01/24/2014 12:13 p.m. #

      These are all important measures we should take for our business Sicorra, even if it's an online business. With all the hacking going on, we have to be especially careful.

      I admit I haven't backed up my data since November...I guess I better get on that, right?

      Thanks for sharing these with us Sicorra! Hope you're staying warm! Talk to ya soon!

      P.S. I chickened out :).

      • Sicorra

        Sicorra 01/25/2014 4 p.m. #

        Thanks Corina!

        Unfortunately there is more hacking going on all the time, so it is always good to take steps to protect your stuff. :-)

    • Corinne @ Home Biz Mom

      Corinne @ Home Biz Mom 01/27/2014 1:15 p.m. #

      Hi Sicorra, I agree with you and Cori, these are great tips for any business, even online ones. I do try to back up my blogs each month...but I slack on it sometimes. I finally got around to cloning my sites so that if they ever go down, I can have them back exactly how they were.

      You did bring up some other areas that I need to stay more on top of. Thanks for the reminder!

      Have a great week!

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