Keeping your business protected from fraud and security threats can feel like an overwhelming job. One place to start is by focusing on internal controls that help keep your business’s financial information more secure. Our Security Officer, Kerri Bronk, recommends putting the following three internal controls into practice and reviewing them regularly.
“The idea is to have a combination of different types of security checks and balances in place – and to make sure you keep them up-to-date,” said Kerri. “These simple internal controls can really have an impact on how secure your business information can be.”
Authorized Account Signers
A small business may want to have a few people listed on a financial account as an authorized signer. This can vary by business but may include the owners, an office manager or bookkeeper.
Kerri advises, “[a]uthorized account signers have access to some of the essential functions of your financial account, so you want to make sure this type of access is only granted when necessary.”
FAQs about Authorized Signers
- What can an authorized account signer do? An authorized signer is different from an account owner (who has complete control over a financial account). In regards to a checking or saving account, for example, a signer can make withdrawals, sign checks and access some account information.
- How many authorized account signers can I have? There is no limit. However, the more individuals who have access, the more risk you’re taking.
- How often should I review this access? On an annual basis or when you’ve had an employment change in your executive management team or accounting/payroll staff.
- How do I make changes to authorized account signers? Changes to authorized signer need to be done in person at a Merchants Bank location. Contact your Customer Service Representative to make an appointment.
You might like to have the option for several people to make business purchases with a debit or credit card. This is where authorized cardholders come in.
FAQs about Authorized Cardholders
- What can an authorized cardholder do? An authorized cardholder can use a debit or credit card tied to your business account to make purchases and get cash from an ATM. You can set spending limits per card user to help keep spending in check.
- Does the authorized cardholder need to be a signer on the account? No, you can give a person access to a card without having other signing abilities.
- How many authorized cardholders can I have? There is not a set limit to the number, but again the more access, the harder it will be to track spending.
- How often should I review this access? Who has access to business debit and credit cards should be reviewed more frequently. We’d recommend making updates to your authorized cardholders each quarter or when you have staffing changes.
- How do I make changes to authorized card holders? For both your Merchants Bank debit or credit cards, stop into your local Merchants Bank location for assistance.
Access to Account Information
Knowing who has access to your business account information and keeping the number of people to a minimum is one of the best ways to avoid a security or fraud threat.
Considering that small or mid-sized businesses lost a median amount of $289,864 to employee funds theft in 2017, it’s critical to thoughtfully review who should have access to this information.*
FAQs about Account Access
- What kind of information can I give employees access to? You can select the level of information you want an employee to receive in Small Business Online Banking or Commercial Online Banking or credit card transactions through mycardstatement.com. You can also use our mobile card controls – Card Valet for debit cards and our Merchants Bank Credit Card App – to have alerts on card spending.
- How many people can have this access? This varies by solution, please ask at your local Merchants Bank location.
- How often should I review this access? It’s extremely important to stay current with account access. This should be updated immediately when staff join or leave your business.
- How do I make changes to who has access to my account information?
- Statements: Contact your local Merchants Bank location for assistance.
- Small Business Online Banking and Commercial Online Banking: Once you have set up your account with you as the owner, you can add or remove secondary users and define account access per user at your convenience.If you have any questions or need help with user setup, contact our Electronic Banking Department (firstname.lastname@example.org or (866) 496-0522) for Small Business Online Banking or Treasury Management Support for Commercial Online Banking (email@example.com or (833) 694-2374).
- mycardstatement.com: Contact your local Merchants Bank location for assistance.
“My last tip regarding internal controls is to ensure that no single employee has access to all the financial aspects of your business,” said Kerri. “For example, you want to make sure that employees who can pay business expenses with a business credit card are not the same employees who pay the credit card bill.”
Just remember that Merchants Bank is always here to help. If you think your business bank account information has been compromised or have a security concern, contact your local Merchants Bank location and ask to speak to your Treasury Management Specialist or a Customer Service Representative.