By Max Patel, 13 July, 2016.
There are two main areas where your employees or staff can inflict financial harm on your business: either by stealing your hard-earned money or by stealing your product offerings.
While every business is different, you can prevent the loss of close to $50,000 per year on average if you are early to prevent employee fraud at your workplace.
Here are 7 ways you can identify employee fraud and take steps to prevent it before it even happens:
Note all high-risk areas and trends
High-risk areas and trends like cash stations or the business practice of allowing waiters/staff to issue refunds and handle cash. Once you have these areas identified, it will be much easier to come up with a plan to monitor & prevent fraud.
Train managers to run & review daily reports
Your managers and cashiers should be trained well to share & review reports and daily transactions for activities that carry a high potential for fraud. This practice will soon reap you financial benefits and help prevent business fraud.
Get more involved with your finances
Take personal interest in financial reports & transactions of your business. If you question & cross check every unfamiliar transaction, there is a higher chance of you preventing any kind of fraud at your work place.
Do random checks throughout the workday
As a small business owner, it will be beneficial if you perform random checks of your registers & checks throughout the day to identify any irregularities & make note of trends to prevent them.
Be strict about fraud with employees
Employee mistakes are bound to happen on a busy day. However, there is a difference when mistakes become a trend & thus are identified as fraud. If all your employees know beforehand that you have zero tolerance for dishonesty & have a system in place, everyone will exercise extreme caution when dealing with important matters.
Cashless payments can help reduce risk
To note, most frauds occur with cash transactions at a business establishment. As a result, recent times are seeing more and more businesses set up online ordering and payments to increase cashless business transactions. If you can implement a cashless method of payment for your customers, for example, providing them with the option to make payments online, through an app or via their credit cards, your chances of financial fraud will be greatly reduced.
Keep an account of all your business assets & inventory
Conduct daily inventory counts & reports to manage your inventory, stock & operational products. This way you can also keep an eye out for product theft
Every now and then trends change, brand likability shifts and your industry witnesses a sudden consumer preference change. If you don’t keep pace with the latest trends, chances are your business will eventually fade away to the over flowing competitive marketplace.
We a Welcomemat understand how important your business is to you and how while running hundreds of daily errands of managing your restaurant, one thing that tops your mind is how to stay ahead of completion?
The Welcomemat program helps such local businesses connect with new movers in their neighborhood through a unique new mover marketing initiative that introduces your local restaurant to thousands of new families and individuals moving into your neighborhood every month thus giving you a chance to make them your loyal customers before anyone else does.
About the author:
Max Patel is our communications manager & helps the marketing team build campaigns & programs for business owners to get new loyal customers.