Ways to Protect Your Business from Employee Theft

  • A video surveillance system helps deter employees as well as catch theft after it happens. Be sure to include cameras in storage rooms and loading areas as well as in the store. Use high-definition video so you can clearly identify employees and transactions along with allowing integration with facial recognition software.
  • Develop a purchase policy that specifies how employee purchases are to be processed. Employees should not be allowed to process their own sales.
  • Employees sometimes falsify records or perform actions that result in receipt of payment for work they didn’t do. Some employees request reimbursement of travel or other expenses unrelated to work. To avoid this perform cash, payroll and computer usage audits. The payroll should be periodically audited for irregularities by external auditors.
  • All cash book entries should be checked against cash on hand at the end of each day. Develop strong audit controls and inventory all supplies, equipment and merchandise regularly.
  • Your product inventory should also be tracked and counted (inventoried). In particular, keep closer track of high-value items and document disposal of all obsolete, damaged, or low-selling merchandise.

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