5 Tips for Protecting Your Small Business’ Finances
Your slow business faces threats from all sides. A slow economy, changing consumer tastes and technological disruptions could all upend everything you’ve worked so hard to build. However, there’s one particular danger that many small business owners often overlook and are underprepared to battle: fraud
Whether it’s hackers or good, old-fashioned swindlers, crime can cripple a small business in mere moments. The Association of Certified Fraud examiners estimates that a typical U.S. business or nonprofit loses 5% of its revenues to fraud each year – unacceptable considering how thin many small business’ margins are. Which is why you must be aware of the various types of fraud that are common to the business world, and how to defend against them.
The following are a few tips on how to protect your small business’ finances.
5 Tips on Protecting Your Small Business From Fraud
- Get Insurance: You almost certainly have commercial property insurance, protecting your office or shop from the likes of fire, storms, even burst water pipes. But considering how much damage fraud can cause, you should also consider commercial crime or fraud insurance, which can cover incidents ranging from burglary to computer fraud to even inside jobs.
- Bolster Your Cybersecurity: This can get tricky considering the cost of some cybersecurity measures, but it doesn’t mean your small business has zero options. At a bare minimum, make sure your computers have antivirus and malware detection software. And while you might not be able to hire your own IT team to monitor a network at all times, several cybersecurity companies offer managed security services that include things such as threat intelligence, continuous monitoring and even insider threat detection.
- Watch for Card Fraud: If you run a retail or other consumer-facing business, keep your eyes peeled for small signs of fraud, including many orders shipped to the same address, but bought using several different credit cards; people who try to avoid using their card’s magnetic stripe or chip; or a purchase of several units of an item that typically isn’t bought in multiples.
- Involve Your Staff: You can’t do everything yourself, and that includes protecting your business. On the front end, make sure you’re conducting background checks on any employee you hire – especially those with access to anything of significant value, whether it’s product or data. Moreover, anyone you hire should be trained up on company security policies concerning things such as monitoring transactions for fraud, choosing and changing passwords, and handling customer information.
- Consult With the Pros: McManamon & Co. offers a number of accounting and professional services, including fraud and forensic assistance. And we can help you determine the best proactive steps to take to protect your small business, as well as narrow down options concerning what to do if disaster strikes.
Don’t get caught off-guard by would-be criminals. Start the path to protecting your small business’ finances by calling us at 440.892.9088 or contacting us online.
Tags: fraud, McManamon, small business, small business finances | Posted in Fraud, McManamon & Co., small business