To grow your business, you need to protect finances, other valuable assets, and brand image, so customers always choose you over your competitors. Protecting your business finances is not a cakewalk as it demands effort, attention, and precision.
Here are the ways to do so:
As a business owner, you tend not to take the risk of someone suing or forcing you to shut operations. Thus, you need liability coverage to protect yourself from injury claims from your clients, employees, and people associated with your business. You may also need property insurance, crime, and commercial vehicle coverage, depending on your business scope.
Prioritize Data Security
As data gives you insights about the underperforming business areas, you should focus on its security regardless of the usage. Protect everything from mailing lists to clients’ credit card numbers to employee details and intellectual property. You need to implement full-on security measures to safeguard your Wifi network and information saved in the database.
To improve data security, you need protocols that reflect who can access what and how from which location. Plan how to protect data, prevent damage, and retain clients. Once you opt for online bookkeeping services, you can add maximum security to your data and prevent intrusion.
Saving Relationships with Suppliers
To run your business, you tend to acquire products or inventories from suppliers, and thus, you need to maintain positive relationships with them. In case you fail to pay them the total amount on time, they may end their association. The potential suppliers may get to know about your unprofessional act and avoid supplying goods to your company.
You can’t run your business without suppliers. So, you should pay all of them on time. If you have a financial crisis, it is advisable to go for a bank loan, credit card, or merchant cash advance rather than missing suppliers’ payments.
Minimize Debt with Innovative Finance Options
It’s common to borrow money several times to run and grow your business. When you take excessive debts and juggle repayments, it cuts down regular expenditure, making it tough to run your business smoothly. In such a crucial situation, you need to opt for creative options rather than taking out bank loans, use credit cards and take part in other kinds of debt.
Receivables factoring is an ideal alternative to invoice many other clients rather than demanding direct payment. This option converts your accounts receivables into cash. You take your invoices stock and pass them to a factoring company. They give you an advance, i.e., approximately 60-80% of the total amount due on the invoices.
When you pay invoices, you repay the advance and fee equal to two to three percent of the invoices’ value to the factoring company and keep the remaining amount. Receivables factoring helps you boost your operating capital and meet your present financial debts without taking on any new debt. This process instead helps you to make most of your accounts receivables.
Shield Cash Reserves
Protecting your business finances is also about protecting your cash reserves. Many people still use cash despite the card, digital, and UPI payment systems. People use cash to pay small amounts, approximately 47% of payments below $10.
Debit cards are the most commonly used instrument, with 30 percent of payments. Though 87% of non-bill payments are made in-person, cash is used for 35% of those payments.
Cash is not hackable like electronic payments but can slip into a pocket and carry off without a trace. When your staff carries cash reserves to the bank, there is always a risk of robbery.
To save your cash from robbers, start using smart safes. They combat accounting errors and streamline back-office operations by calculating the cash from the banker’s drawer and arranging the bank deposit. As these safes communicate directly with the bank, it allows the merchants to receive advance credits depending on the cash amount.
An armored car moves your cash deposit from your business to the bank. So, you don’t need to worry about the safety of you and your employees when handling cash reserves.
The success of your business depends a lot on the financial status. If you fail to protect the financial assets smartly, it gradually leads to the destruction of your company.
When you opt for professional online bookkeeping services, you get a helping hand to manage and protect your business finances in the ways mentioned above. So, save your time in finance management and invest it in other important tasks.