The recent Equifax security breach gets you thinking…is my information ever truly safe? Am I taking the precautions necessary to protect my credit and finances in case something happens? What policies or procedures do I currently have in place to protect myself and my company when I’m trusting others to take care of this for me? You can protect your finances with the proper checks and balances in place.
I recently attended a NAWBO lunch meeting where we had a panel of experts answer questions like these. One of the points that were brought up several times is how important it is to be involved, in some way, in monitoring your finances and credit, instead of leaving it solely in the hands of others.
There’s always a story of a good person doing a bad thing; unfortunately, it happens. When you give employees or other people in your life access to your finances, whether it’s your credit card information or handling the books for your business, it’s wise to have a process in place to keep everyone accountable.
SHARING CREDIT CARD INFORMATION
If others have access to your credit card information, be sure to check your statements monthly. It’s not wise to have one person (other than yourself) authorized to use your card, and they are also the same person that is receiving the statement and making the payment. Having another point of contact, whether that’s you or another co-worker to review statements and/or make payments will help keep one person from having “too much” authority.
If you’re using a bookkeeper, it’s not wise to only review your books once a year or if something doesn’t seem right…by that time it’s probably too late. Set up a time each month or at least each quarter to review what’s coming in and what’s going out.
In today’s busy world, we tend to be reactive to situations instead of proactive. Your credit and finances are two areas of your life that require a system of checks, balances, and monitoring to help ensure the safety of your financial future.