In running a business, many bad things can occur; money can misplace, products can go missing, your employees can even rob you of your hard-earned money, and they happen at times you never expect.
These are some of the unfortunate events that are likely going to happen and you can’t control them. But you can prevent it, for example, employee theft. This article will tell you how you can reduce employee theft with accounting and hiring.
Manage your finances through proper bookkeeping
You have to be present in how you run your business and manage your finances. How much does your business make per day, week or month? Putting down those figures may seem stressful at the beginning but if you don’t want to run a “monkey dey work, baboon dey chop” business, it’s important you put in the work. If you remember from the POS article, he had an experience with a thieving employee. How did he catch her? He took a look at his accounting app and monitored all his sales and expenses.
#Tip: You have to make sure that no single employee has full control over your money. From bank details to salary payment information to bank statements, never lose guard, never fully trust everyone.
Keep an eye on everything you have in stock
We know being in the store and watching everything at every moment is impossible but if you are trying to combat employee theft you need to find ways to make sure nobody is stealing items you have in your store or selling it and keeping the profit. An easy way to do that is to monitor your inventory. Keep stock of the most expensive products and the least expensive products. In fact, keep a stock of everything.
#Tip: Take some weekly time to check out all the products you sell and their conditions Daily, you can use an inventory management app like Kippa to always know what is happening in your store.
Know who you are hiring
When you are hiring your first or second staff, we know it’s trying times and your business desperately needs some more people on board, but it’s important that you shine your eye and take your time. This is the only way you can avoid had-I-Known situations. Ask for referrals and speak to their family members if possible. The rate of theft these days reach to be this cautious.
#Tip: It’s due diligence to perform background checks whenever you plan to employ anybody. It's easy to request at least 2 guarantors that can vouch for each employee because this is a safe way to keep accountability.
Use a security system CCTV
In the case of physical businesses, utilizing a CCTV security system helps you monitor your staff even when you are away from work. If a CCTV is too expensive for you, then you can consider pairing employees in twos allowing them to monitor one another; this creates accountability.
Theft is likely not to occur if your employee knows someone is watching them
#Tip: Keep an eye open for errors in your sales; if possible occasionally test your staff to see if they default in certain situations when you are absent
Employees can steal money, time, supplies or products from your business, so lookout. If you are trying to grow your business and not looking closely at stopping employee theft, you may lose a lot of money. Try out these tips and add more tips in the comment section.
Note: The Kippa content team members are not certified income tax or accounting professionals, and we cannot give you advice on these subject matters. Although we have done this in the past, we can provide you with detailed information from ample research. If you need more professionals on topics related to taxes and the likes, please be advised to contact an accountant in your area.