When you own a business, no matter what size, you need to protect your cash flow. Embezzlement of company funds happens more often than many people realize. Embezzlement is a crime and can be prosecuted in court, but what happens to your company’s financial state? Crime insurance can protect your business from financial loss and keep your company moving forward.
Finding the Right Crime Insurance Policy
To find the right crime insurance policy, you will need to know your risks and how much money you deal with daily, monthly, and yearly. Your insurance agent will ask several questions about how you run your business and process your cash flow. They will help you find ways to improve your financial processes, so your money is more secure.
Conduct Background Checks
Any employees you hire must have an impeccable reputation in handling money. Conducting a thorough background check is important and will provide you with information you will need that is vital to the hiring process.
Limit the Number of Employees Who Deal with Money and Financial Records
Keep track of how many people have access to your money and financial records. This number should be kept to an absolute minimum at all costs. Make sure that only a select few employees who have been properly vetted have access to your financials.
No Signature Stamps Allowed
Signature stamps allow anyone who has access to the stamp to “sign” a check. It only takes a few seconds to take a pen in hand and sign your name. Those few seconds may be very costly if you continue to use signature stamps.
Keep Cash on Hand Locked Up
If you keep any cash on hand, it’s important that you keep it under lock and key at all times. Even cash registers can be set to lock after each transaction. A code will be required to enter a new transaction. After hours, it’s beneficial to make deposits every day and only keep small amounts in the company safe.
Different People, Different Jobs
When it comes to handling money or other steps of the financial process, make sure that different people are in charge of taking in the money and making payouts. This creates a set of checks and balances that keeps the financial flow more secure.
Require multiple signatures when signing checks. This ensures that no check is written or cashed without two people signing off on the payment. It will also allow for a purchase to be approved by more than one person.
Visual surveillance through cameras or having someone standing by is also important. Surveillance cameras over registers and in areas where money is handled can prevent employee theft.
Two-step authentication is an excellent tool to protect your computer files and financial records. Using electronic biometric fingerprints, PINs, and passcodes can protect your digital files. Changing and rotating them often will also help.
Dealing with any amount of company money requires diligence. Contact the agents of 01 Insurance today to find out how we can protect your corporate finances. We have many recommendations that have been proven effective and can help you keep your company’s financial future secure.