Articles, Operating a Business

5 Ways To Keep Your Business Financial Records Safe

Written By: Eric Williams
Reviewed by: Mike Reyes
Last Updated March 6, 2023
Disclaimer

This content is not intended to provide financial advice; rather, it’s for information and entertainment purposes only.

Always consult a licensed advisor for investment decisions.

Some of the links in this article may be affiliate links. If you click on a link, the affiliate may provide compensation to this site at no cost to you, regardless if you decide to purchase something. You can read our affiliate disclosure in our privacy policy.

Finally, this article has been written, reviewed, and fact-checked. Portions of this article have been written using assistive AI tools to help with tasks like research, spell-checking, grammar, and translation. Please have a look at our editorial guidelines for more information about how we create content.

a business person working on their financials

In 2024, more businesses are looking for ways to keep their financial records safe. Securing financial data is necessary for your company’s long-term growth and success. However, cybersecurity threats could endanger critical financial information and your reputation. Hackers could access your business systems if you don’t invest in data security. And this may harm the growth of your business. 

Companies that take precautions to prevent unauthorized access to sensitive data are more likely to earn their customer’s trust. If customers notice that their personal information isn’t safe in your hands, they may air the issue to social media. Some would even write a review about it, causing harm to your business reputation.

Did you know that when trust is compromised, your customers can switch to your competitors? A drop in sales and profits is inevitable if they lose confidence in your business. To avoid this, securing your financial documents is essential to keep your business running smoothly and maintain customer loyalty.

How To Keep Your Financial Records Secure

You can implement various ways to secure financial documents in your business.

Here are some of them of the best ways to keep your business safe.

Switch To Online Faxing

printer, desk, office

You’re risking your financial information if you’re still using traditional fax machines to send and receive documents. The traditional faxing method forces you to deal with physical files. And if unauthorized individuals gain access to the documents you store in file cabinets, your company can be in danger.   

Aside from that, physical documents can get destroyed if a natural disaster like a flood or fire strikes your business premises. So, how can you ensure your financial records are safe? One of the options is to switch to online faxing. 

Online faxing involves sending and receiving faxes over the internet, eliminating the need to handle any physically documented information. Hence, you can secure your data from unauthorized people. However, it’s best to work with reputable brands like eFax or similar ones to make sending and receiving company files more secure.

Encrypt All Digital Financial Information

Dealing with digital financial files comes with several benefits. For instance, you can access them from anywhere, anytime. They also enhance collaboration among your teams. Therefore, digital financial documents provide a convenient way to run your business. 

While digital files can help improve your operational efficiencies, you must also ensure your files are stored and shared securely. One of the best ways to securely store and share financial documents is to encrypt them. 

Data encryption involves encoding your digital files to hide their information. No one can read, use or edit the encrypted files unless you provide them with codes to decipher them. As such, you can protect your financial documents against unauthorized people and hackers.  

Create Strong Passwords 

a person depicted password protecting their business financial records to keep them safe

Creating passwords can protect company systems from unauthorized access. However, some companies are unaware that having a strong password is essential. It ensures better protection by providing restricted access to your financial documents. On the other hand, weak passwords can easily be compromised, which puts your business at risk.

The first step to creating strong passwords is to ensure they’re reasonably long. The recommended length is between 8 and 12 characters. Also, it helps to include alphabets and numerals. And to make them even more challenging to guess, you can add a few special characters. 

Meanwhile, it isn’t just enough to create strong passwords. It’s best to keep your passwords a secret or change them regularly. So, if someone has seen your password by mistake, change it immediately to avoid unauthorized access to your system. 

Use Two-Factor Authentication

In addition to creating strong passwords, two-factor authentication can protect your financial documents. It’s an online security management strategy that requires two forms of identification for someone to access data. Furthermore, it can help you safeguard your most vulnerable financial information or documents. 

After typing your passwords, two-factor authentication will require you to go the extra mile and provide further identification. For instance, the system will ask for another identification proof if someone tries to access your financial documents using a password. Two-factor authentication methods involve sound, facial, or fingerprint recognition. 

Update Your Software Regularly 

Lastly, consider updating your finance software regularly. Outdated systems are more vulnerable to cybersecurity attacks. Therefore, if you use older software versions, you risk losing your financial documents to hackers. 

Installing automatic software update programs is an excellent option to help update your applications regularly. It’ll help ensure your software is always up to date.

Takeaway

Financial records are essential for your business. They contain vital information regarding your cash flow. Hence, it’s necessary to protect them against unauthorized access. Securing your data can enhance your operational efficiencies and create trust with customers. 

Switching to online faxing, creating strong passwords for your systems, and investing in two-factor authentication are some of the most effective strategies you can implement to secure your company’s financial documents. 

Leave a Comment

15585

Stay in Touch With Us

Get latest from The Financially Independent Millennial in our Friday Newsletter

15856