Do Business Well

20. Allocate cash received to the relevant sales ledger account

Some companies have suffered as a result of incoming cheques and cash being incorrectly allocated to customer accounts, thus enabling the person involved to redirect cash easily. This practice can go undetected for years unless steps are taken to check on it.

21. Check payroll calculations

Many companies operate bonus schemes which can be manipulated. Payment by results often reduces unit cost but it is essential that the results are measured accurately. Incorrect recording of batch quantities can result in higher wages and a higher unit cost. Continue Reading »

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10. Limit the supply of protective and special clothing

A number of companies supply special clothing such as jackets, overalls, gloves and shoes, all of which have a practical use outside the factory. It is also easy for special or protective clothing to be taken from a factory or office by simply wearing the outfit and walking out through the door.

11. Monitor scrap and reject materials properly

This is a frequent and effective method for transferring high value items through the factory gate or office door. Each scrap or waste bin should be thoroughly inspected by a senior person for each department who should also insist that no item is put in the scrap or waste bin without his approval in the first place. A further check on the content of scrap bins should be made by the security staff at the gate and spot investigations should take place as necessary. Careful watch should be kept on the contents of scrap bins as they are weighed in on entering the factory premises. Scrap bins containing water show a high dead weight reading which can result in a lower tonnage of the contents being recorded when the skip is full and the water has been emptied. Continue Reading »

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Crime in a variety of guises is on the increase. One of the major growth industries of our time is the supply of equipment to companies and individuals for deterring the thief. New devices for protecting vehicles and contractors’ plant are now on the market to meet the rise in car and equipment theft. Your firm could be suffering a steady drain on its resources through petty or substantial theft. Save money by reviewing all aspects of security.

1. Regularly review your company security arrangements

The thief soon spots any weaknesses in security routines that have been established and practised over a long period of time. These practices and routines become known to all concerned, including the thief, and the tendency is for slackness to creep into the routines anyway. A review of security practices will act as a deterrent. Continue Reading »

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