Cash Theft Happens Every Day
A lot of the theft that takes place in the workplace is done by employees. Based on a report by the Chamber of Commerce, three out of four employees will be stealing from their employers this year.
A Method of Cash Theft
One of the most common and hardest to detect method of stealing is diversion of cash receipts. Stealing of cash can occur at two different times:
1. Before the transaction is recorded as income, which is known as “skimming.” Skimming can happen by not ringing up a sale or under-ringing a sale. It can be identified through large cash shortages or declining gross profit.
2. After the cash is recorded as income but before it is deposited in the bank. A company can use bank reconciliations to discover cash that wasn't deposited but was recorded as a sale. A proof of cash worksheet, which is an extended version of a bank reconciliation, also can be helpful in discovering cash fraud.
Avoid Cash Theft in Your Company
Internal theft happens all the time, and many times it is while the cash is being handled and before it is deposited in the bank. A thief can be spotted by hidden cameras in the point of sale area. Using rotating employees to perform cash register duties can also be a way to cut back on cash theft.
Allen & Company, PC
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