Reduce Business Transaction Risk With These Best Practices
Fraud prevention is crucial to keeping your money and protecting your company’s future success in all business transactions. Recent studies have shown increases in fraud attempts across numerous industries.
Technology and business operations continue to integrate in the modern economy. For many, it has become the core foundation of business, along with the adoption of cloud sharing and online processing. In a business world dominated by tech, cybersecurity and financial stability are essential for every company.
The best ways to combat fraudulent activities are dependent on your resources, but by adopting some of these best practices, you can help protect company funds and resources.
Minimize risk and increase control of account information by transitioning from paper records to a secure digital filing system. Professionals are surrounded by sensitive company, client, and stakeholder information. The best way to protect this information is through a secure portal or platform. Another digital advantage is an electronic payment service, which can lessen exposure to check fraud by reducing the number of checks being issued.
Get Experienced Banking Partners
Industry expertise and a dedicated relationship manager can also make a huge difference. Partnering with a bank or financial institution provides your accounts protection and management through highly regulated accounting protocols and account monitoring procedures to alert of potential risks and fraudulent activity. The tools to monitor your company’s financials could be too expensive or robust for your resources, but a banking partnership allows you to easily share resources and monitoring tools.
Implement Best Practices and Internal Controls
Adopting technology and synergetic financial partnerships can be helpful, but be aware of the internal controls set forth company-wide to best protect your finances. Consider the following best practices for payments and processing:
- Create policies and procedures that clearly identify separation of roles and responsibilities. Separation of responsibilities helps reduce risk and provides checks and balances. For example, an administrator of payments remains separate from those who reconcile accounts and statements. This helps control the flow of cash and ensures that reporting is accurate and fair.
- Periodically review authorized signatures, transfer agreements, and access rights to remain aware of all authorized executors on an account.
- Always enforce company-wide cybersecurity measures.
- Maintain a level of control by restricting accounting system access to authorized personnel only.
- Schedule and maintain routine encrypted data backups and system upgrades to secure sensitive account information.
- Continuously educate and train employees on safe internet practices and technology resolutions.
Managing your finances requires considerable time and expertise, but outsourcing the task can save you time and money. Axos Bank is your leading banking and technology partner, providing you with enhanced security measures, seamless software integrations, customized API capabilities, and partnerships with property management associations.
Learn more about how Axos Bank can help protect your company from fraud.