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Cybersecurity and Your Business

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Cybersecurity is the technologies, processes, and practices designed to protect networks, devices, programs, and data from attack, damage, or unauthorized access. You may think that your business will not be a likely victim but the risk is not limited to businesses that sell products and handle credit card information and it’s not just large companies that are targeted. If your business collects, processes, and stores data on computers and other devices, you are at risk. Protecting your company and its information needs to be a top priority. There are a number of safety measures you can take to ensure that your systems, data and site are as secure as possible.

    • Train your employees: Establish basic cybersecurity practices and policies for your company and train all employees regarding these. Inform employees regarding all security issues. Have a clear email and Internet use policy. Provide regular updates on new protocols and conduct regular training sessions to review IT security best practices. Create a culture of cybersecurity awareness.
    • Secure your network, database and website: Install the latest anti-malware, antivirus, spam blockers, spyware detection and anti-ransomware software. Consider using a service like PayPal to process payments and protect customer information.
    • Establish safe passwords and authentication practices: Data breaches often happen due to lost, stolen, weak or easy to guess passwords. Consider a  Password Manager App, a software application designed to store and manage online credentials in an encrypted database. Multi-factor authentication that requires additional information to gain entry is another possibility. Change passwords every 3 months. Give employees access to only the specific data systems that they need for their jobs and require permission before installing any software. No one employee should have access to all data systems.
    • Implement penetration testing: Penetration testing involves hacking into your own system to expose vulnerabilities in your host network and network devices. It identifies problematic access points in your system and provides suggestions for hardware and software improvements to upgrade your security.
    • Provide firewall security: Install a firewall on all devices; a set of programs that prevent outsiders from accessing data on a private network. If employees work from home, ensure that their home systems are firewall protected. Firewalls give you the best chance of protecting your site before an attack is successful and they result in a faster and safer website. Many companies install internal firewalls to provide additional protection.
    • Do private browsing with a VPN (virtual private network): Business owners/employees often use temporary workplaces and remote locations (coffee shop, airport, home office) increasing the risk of outsiders gaining access to business data. A VPN creates an encrypted connection between your computer and the remote private network making it necessary to have the key to decode information. Your data can’t be monitored, tracked, collected and stored.
    • Create a mobile device action plan: Mobile devices (laptops, tablets, USB drives, smartphones) create a security risk for your company. Require employers to have password protection, encryption software, and a remote lock and wipe app.
    • Encrypt your emails: Email messages and attachments are not a safe way to send confidential/sensitive information. Email encryption software ensures that only the sender and recipient can read the email/attachment thus preventing data breaches. The email contains a hyperlink to a website controlled by the sender.
    • Subscribe to a Cloud service; an easy and affordable way to get data security from a company that specializes in handling security threats.
    • Backup business data and information: Automatically backup critical data (word processing documents, electronic spreadsheets, databases, financial files, human resources files, accounts receivable/payable files) and store the copies offsite or in the cloud. Check your backup regularly to ensure that it is functioning correctly.
    • Outsource your IT: A third-party IT provider hires and trains the best security people, gives you a set monthly fee, remotely manages your servers (24/7) and responds to emergencies.
    • Dispose of data safely: When disposing of outdated computers, completely destroy the data on the hard drive by using a wiping/degaussing system and then physically destroying it with a hard-drive shredder or crusher.
    • Secure your Wi-Fi network: Set up a wireless access point/router that is secure, encrypted and hidden. Password protect access to the router.
    • Talk to your professional accountant to ensure that your information is protected on their end.

 

Increase your vigilance regarding online security in order to protect your intellectual property, financial data, personal information, or other types of data from unauthorized access or exposure. Undertake proactive measures to protect your business computer, network, data, and website. Be aware of recent attacks and adjust your protection as needed. Stay ahead of cyber attacks, cybercriminals and emerging trends in cybercrime. The Canadian Center for Cyber Security provides online training, checklists, and information specific to protect online businesses.

 

Concerned about the safety of your company’s information? Want an accountant versed in cybersecurity? Contact Cook and Company Chartered Professional Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to help your business. Contact us for a complimentary consultation.

 

 

 

References:

https://www.wordstream.com/blog/ws/2019/03/12/video-advertising-trends

https://www.wordstream.com/blog/ws/2019/10/31/pre-roll-ads

https://smartyads.com/blog/what-is-ott-advertising/

https://instapage.com/blog/pre-roll-ads

https://instapage.com/blog/digital-advertising-trends

https://financesonline.com/advertising-trends/

https://financesonline.com/advertising-trends/

https://marutitech.com/benefits-chatbot/

https://blog.templatetoaster.com/google-alp/

https://www.business2community.com/digital-marketing/top-10-trends-in-digital-advertising-in-2020-02263555

https://www.singlegrain.com/digital-marketing/digital-marketing-trends-2020/

https://instapage.com/blog/what-is-outstream-video

https://www.curalate.com/blog/google-shoppable-ads/

https://www.3playmedia.com/2018/09/20/3-reasons-why-you-need-video-transcription/

https://www.tintup.com/blog/user-generated-content-definition/

https://www.google.com/search?client=firefox-b-d&q=what+is+a+remarketing+ad

https://www.investopedia.com/terms/o/over-top.asp

https://digitalguardian.com/blog/biggest-incidents-cybersecurity-past-10-years-infographic

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Why a Small Business Needs a Budget

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A budget is a financial plan for a company’s future. It projects revenue and expenses, enabling a business to make confident financial decisions. Many business owners underestimate the value of a budget. The following are a number of reasons why your company needs a budget.

 

  • Enables accurate goal setting: A budget helps a business to set goals, priorities and spending caps. It shows where funding comes from and where new strategies might bring in revenue. A budget reminds you of your overall strategies when making decisions.  
  • Assists in writing a business plan: A realistic budget is an essential part of the business plan needed to raise capital for a company. It Indicates that the company has a viable strategy and a practical plan for making a profit.
  • Allows planning in advance: A budget helps your company account for long term needs, maximize profits and distribute revenue effectively over the course of a fiscal year.
  • Informs spending decisions: A budget establishes spending limits, promoting accountability. It shows how increased expenditures in one department can be balanced by a decrease in another, helping managers work together to avoid overspending while still providing necessities. 
  • Informs and motivates employees: A budget helps to unify and engage your employees by giving them quantifiable goals on which to focus. It encourages them to think of solutions to sales shortfalls/expense overages and to help the business hit its budget targets.
  • Unifies stakeholders: A solid budget gets stakeholders on board with your goals, keeping all parties in agreement with the company’s objectives and plans for meeting them. It helps gauge progress enabling investors, shareholders, owners and managers to work together to keep the company healthy and on track.
  • Enables performance evaluation: By tracking revenue and expenses, a budget helps evaluate the performance of your business over the course of the fiscal year. It ensures your company is sticking to the plan, pinpoints problems and identifies opportunities.
  • Attracts investors/satisfies lenders:  A detailed budget that your company adheres to shows lenders and potential investors that your business plan is working and inspires confidence in your business. 
  • Aids in determining staffing needs: A comprehensive budget will help you decide how many full-time, part-time or contract employees you need to reach your goals. It will assist you in determining whether you should do your own accounting/payroll or hire an outside consulting firm. 
  • Assist communication: The clear plans and expectations of a budget minimize confusion and create clear communication between departments and levels of management.

 

Budgeting is especially important for small businesses where being off on cost projections or estimated earnings can have a devastating effect on the company. Creating a budget for your small business makes operating your company easier, more efficient, gives you the best chance of achieving your long term goals and helps you reap rewards for your hard work. Consider hiring a Chartered Professional Accountant with expertise in business finance. They willl help your business create a detailed and viable budget. 

Need help in creating a detailed and realistic budget for your business? Contact Cook and Company Chartered Professional Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to help your business. Contact us for a complimentary consultation.

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Cash Flow Management Tips for Small Businesses

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Has your business ever had trouble paying vendors, making loan installments or meeting payroll requirements due to cash flow issues? You’re not alone! Cash flow management is one of the biggest challenges that small business owners face. Though every business’s needs are unique, the following are some strategies that may improve your company’s cash flow position and ease the strain on your working capital.

 

  • Ask for a deposit: If your product or service requires considerable cash or effort before delivery, consider asking clients for a deposit.
  • Examine your debt collection procedures: Be prompt with your collections and follow up on past-due accounts receivable by sending reminders. Offer a discount for early payment of invoices.
  • Cut and/or delay expenses: If your company manufactures products, consider using lower-cost inputs to deliver the same goods. If you are a service company, opt for spending less time on the same work. Exhaust existing inventory before purchasing more. Hire part-time or contract employees to replace full-time employees.
  • Get a business credit card: Choose a card that rewards with points that can be used for travel and business purchases. Many cards come with innovative reporting options that illustrate spending trends to help business owners optimize their cash flow.
  • Get creative with marketing: Instead of expensive radio, TV or newspaper ads, opt for a less costly social media marketing campaign.
  • Restructuring your terms with vendors (an extra week or two for payments) can make a substantial difference. Once you have reached an agreement, be timely and dependable with your payments.
  • Finance purchase orders: If you’re a manufacturing or merchandising company and you require a significant amount of cash to fulfill your orders, financing purchase orders may be helpful. The financing company pays the vendor so you can acquire the merchandise/inventory you need to fulfill the order. This allows you to take large orders that you don’t yet have the cash to fill.
  • Increase margins: If your business has a unique product/service or a high demand for your product/service, consider increasing your margins by increasing your charges. 
  • Sell or lease idle equipment: Utilize eBay or Craigslist to sell redundant or idle equipment and use the proceeds to ensure cash flow.
  • Sell future revenue: Consider taking a loan that is automatically repaid via a percentage of your business’s credit/debit card transaction volume. 
  • Turn down, shift or postpone work to manage the volume of business for consistency over time. Offer good clients a discount for postponing their work, order or service. This will not be a viable strategy for companies with strong seasonal businesses (retailers, accountants, etc.).
  • Invoice factoring involves selling your invoices (an asset) to a factoring company. Instead of waiting 15, 30 or 60 days for your money, your business gets payment upfront.
  • Hire an accountant: A Chartered Professional Accountant will have the knowledge and experience to offer you creative solutions to your cash flow problems. 
  • Restructure payroll: Switching to a less frequent pay period can save on administrative costs (collecting, verifying, tabulating information). Direct deposit can also help stabilize your payroll withdrawals.
  • Borrow money before you need it: When your business is doing well, open a business line of credit. Interest rates can be as low as 6 to 7%. Ask for more than you need so you have reserves to draw from when times are tough.
  • Evaluate your cash flow on a regular basis. Calculate how much debt you can take on and not be overleveraged.  Factor in time, interest, ROI. Have a repayment plan in place for borrowed money. If possible, maintain a rainy-day reserve in case of an emergency.
  • Take advantage of technology by using apps and software to streamline your business processes and increase efficiency. Technology can enable you to spend less time worrying about cash flow and more time running your business.

Working capital is the fuel that powers small businesses. Managing cash flow is critical to running a profitable long-term business. Constantly look for new ways to improve cash flow management in your company.

Looking for ways to examine and improve your cash flow? Contact Cook and Company Chartered Professional Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to help your business. Contact us for a complimentary consultation.