Let’s face it, theft is more common than any of us want to admit. You want to believe that your staff would never steal from you and your business is immune to thieving hands. Well, it is time to face reality and guard yourself and your business from dishonest staff members. One of the ways to protect your business is by using a tracking system for all of your business transactions. Keeping accurate business records especially of inventory and cash is crucial. Your inventory is what makes your business money.
One of the more obvious and most common are staff members giving away products or services free to customers on a constant basis in order to win more sales. An example would be a bar tender giving away drinks for better tips. Be careful of letting your staff give away any product or service without prior approval. Include the amount your staff is allowed to compensate any given customer in your yearly totals. This will help your staff spread out the comps over the entire year.
Check over orders from time to time for accuracy and consistency. Millions of dollars every year are stolen from businesses by staff members filling out false orders to gain merchandise. If you have a high turnover, this will increase your chances of fraudulent orders.
Do not allow the same staff member to collect and post customer transactions. This will help prevent false postings of customer payments and write-offs. It is a good idea to use a check and balance system between the two separate positions.
Practice what you preach. If your staff sees you using your business as a personal wallet, they will start to think of it as an easy cash cow themselves. Make sure you record the money you pay yourself in your accounting software so that you can properly claim it when you file business taxes. Talk to us if you’re unsure of how to categorize it in your accounting program.
Be careful of staff members who are too close to your suppliers. Often suppliers will give away freebies that are meant for your business to use and want to purchase. A sneaky staff member may choose to pocket or sell an item that was meant for your office to use.