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Q&A - Theft is serious business
By: By DON DOGGETT
Q: I am experiencing some reduced income and, based on all my records, that should not be occurring. My only conclusion at this point is I am experiencing some employee theft. Any ideas on how best to deal with this problem?
A: No one likes to think a customer or employee would steal from a business.
Theft can cost your business a great deal of money. It's up to you to implement systems and controls that will protect your business. Employee theft is often cited as the most common type of theft within small businesses.
As a first step in theft prevention, carefully screen job applicants before hiring. Background and reference checks are especially crucial for positions in which the new hire will be handling money. Ideally, a background check should include a check of police records.
Next, keep up-to-date inventory records and perform audits regularly. Many firms audit quarterly, others biannually. Frequent audits enhance your chances of spotting and correcting problems. When records are poorly maintained, the chances of theft increase because the chance of getting caught decreases.
Incoming inventory is a target for theft. When inventory is received, have two people check it in. Log items received compared to the shipping ticket. The two-employee inventory process helps verify the contents. Flatten all trash cartons and spot-check cartons after hours to be sure no merchandise has been left inside such cartons.
Keep the shipping and receiving door locked whenever it's not in use. You can also eliminate potential theft opportunities through careful training and supervision of employees. Major losses can often occur when employees take merchandise after hours.
Only a few employees should have keys to the business. Installing time locks and alarms can also help prevent theft. You may look into measures such as installation of a central alarm system, video cameras or motion detectors.
There are also positive ways to discourage employee theft. For example, offer employees discounts on merchandise. This can make employees feel valued. If you do suspect a thief among your employees, document missing items. Hold a training session on the negative aspects of theft, including damage to the business, potential loss of job and a harmed reputation.
If the problem persists, report it to the authorities.
A: No one likes to think a customer or employee would steal from a business.
Theft can cost your business a great deal of money. It's up to you to implement systems and controls that will protect your business. Employee theft is often cited as the most common type of theft within small businesses.
As a first step in theft prevention, carefully screen job applicants before hiring. Background and reference checks are especially crucial for positions in which the new hire will be handling money. Ideally, a background check should include a check of police records.
Next, keep up-to-date inventory records and perform audits regularly. Many firms audit quarterly, others biannually. Frequent audits enhance your chances of spotting and correcting problems. When records are poorly maintained, the chances of theft increase because the chance of getting caught decreases.
Incoming inventory is a target for theft. When inventory is received, have two people check it in. Log items received compared to the shipping ticket. The two-employee inventory process helps verify the contents. Flatten all trash cartons and spot-check cartons after hours to be sure no merchandise has been left inside such cartons.
Keep the shipping and receiving door locked whenever it's not in use. You can also eliminate potential theft opportunities through careful training and supervision of employees. Major losses can often occur when employees take merchandise after hours.
Only a few employees should have keys to the business. Installing time locks and alarms can also help prevent theft. You may look into measures such as installation of a central alarm system, video cameras or motion detectors.
There are also positive ways to discourage employee theft. For example, offer employees discounts on merchandise. This can make employees feel valued. If you do suspect a thief among your employees, document missing items. Hold a training session on the negative aspects of theft, including damage to the business, potential loss of job and a harmed reputation.
If the problem persists, report it to the authorities.