Your company's assets make money for you. They also contribute to the value of your business and help you qualify for loans and vendor contracts. You have strong incentives to protect those assets, because any asset you lose diminishes your company and threatens the future of your business. You can learn how to protect assets by looking at examples of such protections and adjusting those examples to suit your needs.

Approvals for Purchases

When a company requires the approval of more than one manager for every purchase, this is an example of safeguarding assets. This approach works in two ways. It prevents cash from being wasted on unnecessary assets, and it prevents the duplication of assets. If you already own an income-producing asset and purchase an identical asset you don't need, you spend twice the money to make the same income. This diminishes the value of both assets because you measure them by their ability to create income.

Segregation of Duties

A company can safeguard cash assets by dividing duties among employees. For example, one employee might handle cash while another handles checks and charges. You can further designate the task of totaling and recording transactions to yet another employee. Similarly, you can protect investment assets by assigning varying tasks. One employee may choose what investments are best, and yet another may monitor the investment to see if it performs up to expectations.

Tracking Inventory and Physical Assets

You can use an asset tracking system to label each physical asset you own and track where it is located. You can use such a system for inventory, machinery, vehicles and supplies. Some of these systems use barcodes or other electronic tracking labels, and some require you to manually enter the description and location of each item. Either way, you can protect your assets by checking on them to make sure they are in good condition and are being used properly.

Contingency Planning

When a company creates contingency plans to handle crises, it is protecting assets. For example, a company's plan for what to do in the case of a natural disaster may include asset-protection insurance that would allow it to replace assets quickly and continue operations. A plan for what to do if the company loses a major client might include provisions for how to raise cash to prevent the selling of assets.