In any business, we cannot avoid having employee theft. These can start from money, inventory or even business assets can go missing. Before anything can happen, it is important to straighten it out. One simple to do it is to straighten their bookkeeping methods.
1. Practice correct bookkeeping
To prevent theft by the staff, it is a good idea to practice bookkeeping. Make sure that no single person controls the financial transaction of the business. Having a different personnel for every type of transaction can be implemented to make sure that no one can manipulate the books.
2. Closely track inventory
It is important to monitor the inventory daily, most especially with high-priced items. Tracking the inventory can determine an increase in the damaged goods or unexplained drops in sales. With this, the company can provide solutions accurately to prevent loss in sales.
3. Double check the petty cash
A lot of businesses maintains a petty cash drawer and having a single person to manage it. Even though the cash is limited, theft will still occur. To ensure that all the petty cash transactions are valid, it should be signed off by at least one other employee, or a supervisor. It is also suggested to verify the petty cash drawer weekly to prevent well-intentioned staff from unauthorised borrowing
4. Be objective in correcting other people’s behaviour
We cannot avoid to see other employees having suspicious behaviours like being more secretive or defensive. Even worse, when the interactions change, consider having a separate talk to discuss and find out what’s wrong. There will always be reasons why a person acts that way but it’s worth being aware that fraud or theft could be one of them.
5. Perform a stricter screening process for hiring
This is one of the best preventive action to do to minimize employee theft. Character should be assessed and it is also important to look at the family background and the prior employment experience of the applicant. Companies can use all the screening tools available, especially forpositions that usually involves cash handling or bookkeeping. They may invest a considerable amount for this but in the long run, there will be a good impact in creating a stricter hiring process.
To safeguard your business, it is important to hire a bookkeeper. Visit Eclat Accountancy Ltd's website www.eclataccountancy.co.uk for a list of available services suited for your business. They offer the best accounting services that you will surely love.