Do Business Well

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.

12. Rely on stock records to pinpoint theft

In the majority of cases companies allow some latitude in the accuracy of stock records compared with the physical count. Even perpetual inventory during the course of the year is still not sufficient to eliminate theft opportunity. Take a few items, preferably of high value, and take stock on a regular basis, perhaps once a day or even more frequently. This will allow you to pinpoint exactly the timing of theft and thereby identify the culprit. One tends to assume that discrepancies between the physical and stock records are due to some clerical error or miscount and in many companies it has become the accepted thing for such discrepancies to occur. Why not be suspicious for a time and consider that one or two discrepancies are the result of theft?

13. Guard against private work being carried out by individuals in the office or factory

Company time spent on private or personal work in the office or factory is a costly matter. Again, it is quite normal for such things to happen but it can get out of hand, and when costs need to be kept to an absolute minimum it is a practice that many companies can ill afford. It is a subject worth bringing to the attention of managers both in the office and on the shop floor. Insist that such private work is eliminated.

14. Vet expense accounts

This is a very easy way for individuals to obtain cash from the company. It requires only a little boldness on behalf of the claimant to put in the odd additional expense claim. Remember that vouchers are not difficult to come by.

15. Work the allotted hours

There have been cases of employees clocking on and clocking off but disappearing in between.

16. Control abuse of the firm’s post room

Private mail can sometimes creep in, so keep an eye open for this. Even just a few letters a day (especially if they’re for overseas) can add up to a heavy bill over a year.

17. Keep a proper record of goods on loan or on demonstration

Once goods have left the premises they should be invoiced, even if on an ‘on loan’ basis. All stocks not under your physical control should be accounted for by the finance department and a report of such goods which have been given out on loan for exhibitions and shows or for demonstration purposes should be regularly studied.

18.Authorise all credit notes

The issuing of credit notes on the request of a junior person without proper authorisation by a senior or independent person is a bad practice. All credit notes should be independently assessed, audited and authorised.

19. Check that all goods despatched and services rendered by the company are invoiced

As with credit notes, the non-invoicing of goods despatched or services rendered by a company is an opportunity for theft by conspiring persons. It is also a very expensive loss to the company. A regular calculation by the finance department should reconcile opening and closing order values by adjusting for orders received and invoices raised in the period.

Possibly related posts: (automatically generated)
Business Security, Crime Controlling 29 effective ways! (10-19)

• Business Security, Crime Controlling 29 Effective ways! (1-9)
• Business Security, Crime Controlling 29 effective ways! (11-29)
• If Employed by a Corporation, Be Realistic
• Financial Awareness, Small Business Budgeting
• Control your cash flow because cash is king
• Selling Part of your Business
• Scarce Resources Can Divide Your Group
• The E-Wallet Wars
• Making a Plan: how to construct a simple and workable business plan part 5
• What you can do in your organisation

6 Comments »