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2 common ways employees STEAL from small businesses
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- เผยแพร่เมื่อ 26 ธ.ค. 2021
- Over my long career as a financial controller I have seen many different shapes of employee fraud. And it doesn't surprise me at all to know that 75% of employees admit to have stolen from the company at least once.
In today’s video I’ll show you common ways employees steal from your business. These are real stories based on my 1.5 decades working at a controller.
So if you are a business owner or work in accounting, this video will help you catch things you normally wouldn’t see or pay attention to.
One of the most common ways employees steal is Skimming
The name skimming comes from the way you skim the fat off the surface of a bowl of soup. Skimming in Finance is stealing cash from the company before the cash hits the books and Records.
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For the movie theater-I'd go with a token turn style instead of paper tickets. The patron pays for their admission and receives a token. The token is used when they come through the main door, kinda like the subways. Of course adjustments would be needed for the physically challenged. No token-the turn style doesn't move. This really eliminates the second employee. The tokens are locked up until the end of the night(shift). The turn style should record the number of people who come through. The tokens are reusable so that should pay for itself in no time. As for the pizza place-how is it they don't have your pizza already prepared and ready to just follow you to your regular table when you walk through the door? LOL I worked in a diner when I was going through college and I knew my customers. Right down to their jelly preferences. I'd see them pull in and have their orders cooking, so they were able to eat within minutes of walking through the doors. To answer your question for the pizza place-separate the duties. Have one person in the dining room to cash out customers. They should deliver the final bill and collect the money and have to provide receipts to the customers. That should be their whole job. The servers should use a computerized system to enter orders, this will "count" the pies made during a shift/day. I don't think the cook should have to count pizzas. That person's job is to make great food so the customers will return.
*1) restaurant: break the hands of the first cheat/thief employee in front of the others, no one else will follow suit*
*2) movie theater: break the toes and ankles of the first cheat/thief employee in front of the others, and hand out free popcorn while they watch*
Thank you for sharing this real stories..
Thanks for sharing these stories - the video delivered more than I thought it would and can imagine it to be useful for lots of business owners. I wonder if the move to a more cashless society has helped reduce such instances (but perhaps introduced others, so would be great to know more about these if you decide to make another video or two). Your second story also reminded me of Mystery Diner episodes where individuals have stolen goods and cash from restaurant owners.
Yes you are 💯 right on the cashless economy brining new challenges. But overall credit payments enabled merchants to grow their business faster in my experience
Mystery Diner? Can you elaborate on the episodes!
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I couldn’t come up with a control but nice to have a review of my ethics class !
MOVIE THEATER CONTROLS
CONTROL 1:- TICKET NUMBERS CORRESPONDING TO SEAT SERIAL NUMBERS
Each ticket must have a serial number corresponding to a seat with the same serial number. Customers must sit only on seats corresponding to their ticket numbers.
CONTROL 2:- DUPLICATE TICKETS
This simple control would have been enough to prevent tickets recycling. On point of payment, the cashier must issue two tickets to the customer. Both with same ticket number but with different colors. The customer would then only hand over one copy to the Usher to mutilate and store. Maybe red copy will be customer copy and green copy will be given to the usher on entry.
It must be clearly indicated at the cash point that each customer souls collect two tickets with same serial number. Green copy will be given to usher whilst the customer keeps red copy.
WHY THIS WILL WORK?
Recycling a ticket would then be impossible as the usher cannot re - issue a green ticket to a new customer without providing the red ticket. The customer will ask for his "red ticket".
Even if the customer doesn't ask, he will meat someone on his seat inside the theatre who has the red ticket for the seat. The controversy will easily reveal the skimming scheme.
Serial numbered the tickets and each ticket should be linked to a seat. As bizness owner, I will use the ticket stub to reconcile cash collected. Or use non-cash payment
Nice job
I would put up a sign to alert customers to ensure that they have a part of their ticket i.e it would have to be torn in half, where the customer receives one half and the usher keeps the other half. This would ensure that no tickets are being reused.
Dear FC, are you going to do a video about the large impact of wage theft employers steal from employees?
To make sure all transactions are recorded in a cash based business (the main issue), you probably should incentivize the person receiving the receipt. Examples could be by receiving a free Item if no receipt was given or by putting rewards on the receipt
The tickets should be issued by a machine which only dispenses a ticket when a sale is made and keeps track of the number of tickets it dispenses. This way the owner would have an accurate count of 6ickets sold wo having to count ticket stubs. I'm sorry this happened to your friend and I hope he implements controls to prevent employee collusion in the future.
Spot on recommendation 💯
Another thing to consider: when an employee steals, the damage is petty: cash, skimming, what not. The huge losses are suffered once employee colludes with someone else: this is how fraud is committed
My first thought was also simply tickets numbering.
@@valkyrie9553 Employee theft is never petty since many businesses operate on thin margins and theft can cause a business to suffer severe financial damage which can cause a business owner to go out of business.
With the movie theater, i would make a way where when some sort of stamp on the ticket that when the customer touches it, it leaves a mark, so it cant be resold. So in order to compromise this the three individuals must all have bad integrity in order for theft to occur, which kinda of reduces the probability of theft.
What are your thoughts on forensic accountant and how to become one?
For Pizza Restaurant:
1st Separate Tasks between Pizza baker and Cashier/Sales Person
2nd Add a CCTV Camera
Use a PoS system to register the total amount of pizza sales, then let someone else reconcile it by the end of the week or day.
For each Pizza box, put a sequential number so that after each pizza is made the baker should keep the pizza in the box, then scan it to register as "pizza baked" then let the salesperson scan it again to register that baked pizza as a "sale". Moreover, let the sales-person match the sequential to sales receipt sequential number in PoS system. After that let the manager trace and reconcile sequential codes and receipts to the cash on a weekly or daily basis.
Thanks Ali. I like the sequential number idea
Over 15 years of my accounting career I have learnt that only if can go all bank; debit or credit card or use online platforms for pre-order even if it's cash, you pretty much can avoid the chances of theft.
Also remember that locks are for gentlemen/women, theives will find a away anyways.
OK so what do you consider A FAIR WAGE nowadays even $20 dollars an hour is not even enough to actually survive the average person would have to be making about $40 dollars an hour just to keep up with RENT , FOOD , CLOTHES , FAMILY , etc......... And also not to mention the high cost of Healthcare in this country.
So lets say its a business that doesn’t keep track of inventory, as in they don’t take inventory or they only do once a year. Would it be impossible to catch a skimming employee, since they can’t compare inventory amount to the amount reportedly sold?
This is an unrelated question of the video. But I'm very couious how does it feel to have made your fortunes through accounting? Do you wish you took a diffent route? Is Pwc is something you would do again? Do you think accounting treated you fairly? I'm a accounting student and want to know if the end goal is worth it.
Great question and yes I made a great living and saved nicely working in accounting. It’s probably worth a video
@@TheFinancialController Thank you for replying nicely. I do see it as being a very good life style skill.
Does anyone have a good suggestion to prevent the pizza place place scenario? If its a shop that doesn’t have accurate stock records to compare to sales records then it seems unpreventable.
The pizzeria owner will know the weight of the dough in each pizza. He can weigh the pizza dough at the start of the day and again at the end to know how many pizzas were made.
I would also put up a notice asking customers to insist on a receipt.
I worked at Wild Oats 14+ years ago. We had employee theft like you would not believe. In my dept., E. And A. , Were the employee theft twins. E. Would steal everyday and A. Would steal something big every few weeks. For example: she would fill a grocery paper bag, two thirds full with merchandise and walk out the door. I would tell my dept. Manager about it. He would turn his head to the side, his lips would form a "0" and he would just stare at me. It's as if he couldn't comprehend what theft is. We wasn't in on the theft, he was just a absolute moron. When I tell this story somebody said " what is the big deal about stealing from a big company? The big deal is that 1. This wrong and 2. In my life experience, people who steal, are also lazy. E. And A. Would just stand around or go on 20 minute smoke breaks. A. Would volunteer to throw trash. She would be gone 45 minutes. I decided to follow her to see what took so long. It was five minutes to throw trash and 40 minutes to sit down and have a smoke. Our store manager wouldn't do anything about the theft or laziness. Our regional manager was also useless. He was famous for two things. A hair trigger temper and he didn't use deodorant. When he would yell at us, he would wave his arms and you could smell his odor. E and A. Left the company after a year. I thought they were fools to leave because, they were paid to stand around or go on a 20 smoke break. Also, they were never punished for stealing. Also, E would go around the dept. Doing the Nazi salute and laughing about it. The dept manager wouldn't do anything about it. I hate E, A, our store manager, dept manager and our regional manager. I would like them all to get cancer and die.
Comparing the quantity of consumed material from the kitchen of the restaurant with the number of orders or no of pizza that have been sold
Please do a video on career path for ACCA students
ACCA is more relevant in Europe, this guy is a CPA, which is relevant in the US/Canada/Australia… in South Africa it’s the CA (SA)
Add date and time to the ticket
Good one, thanks
A sensory pad on which the ticket is to be blipped by the customer before he enters the hall...if it's a previously used ticket....the alarm goes wee woo wee woo....
Witness coworker over comp, drinks and keeps the money.
For Movie Theather.
Instead of keeping an Usher, Keep a ticket gate that only opens for each person when they scan their tickets which are sequentially coded and registered in the PoS system
For the cashier in the theatre, make the Ticket Printer and PoS, Cash Register integrated so that the ticket only prints if the cash is kept in the register.
After all let another person reconcile all sales to the cash. However, such controls might b expensive so idk if it will be effective for your movie theatre
Good controls there. The cost benefit will make sense. Amount stolen in four/six months is enough to buy install such system.
Initial cost of the system is high but the expense will be spread periodically through depreciation.
Good SOPs there
@@camauhel-joe7539 good idea, expect instead of a ticket is issued a token instead, which will only let the seat down (if the bottom is spring loaded), the token has the number of the seat with a chip embedded, in which you would get from a vending machine. This eliminates the Casher and the Usur, thus you only need a security person, and canteen for mid session etc.
My mum has a sole proprietorship and dad's was running it for years. The internal control was so out of place that my dad used to attend all the calls and collect all the money. It is so absurd that the clients don't even want an invoice. Now that he is no more I am having to look after this. So yeah, there are a lot of internal control absent in my mum's co. Need to bring it all in the right place. We just got new employees and a manager to take care of things. But the clients not understanding the concept of a bill is frustrating. They want to simply pay the amount without any records nor tax. They are such _____ heads that they want to leave our firm if we introduce these basic concepts. Baaaam ----
That seems very suspicious to me. Something's up.
@@hilarygilmore323 oh yeah, well we don't do business with them anymore
You could do assigned seats in the theater
Good one yes
compare the total number of seats with the total number of used ticked. SO Someone must check the true number of customers.
Most tickets have numbers, the first and last numbers should make up the difference of what was sold. Seems really simple to me.
Both camera at ticket booth and the entrance of Cinema room
Great, watch the Usher too, thanks
Try tipping more than 15% and dude won’t have to steal 😂
lol 🤣
First