Retail stores are busy places. Owners and managers have several areas of responsibility and cannot be everywhere all the time. Also in today’s hyper competitive environment, one key area that retailers must focus on to remain profitable is minimizing loss—whether it is loss of inventory or loss of cash. The best way for a retailer to minimize loss is to implement internal controls to safeguard assets. These controls create operational efficiency but also provide accurate accounting records for the business.
Unfortunately one cause of loss, or shrink, for retailers is employee theft. According to a retail theft survey conducted by Jack L. Hayes International, a loss prevention consulting firm, one out of every 40 employees was apprehended for theft by their employer in 2012. The survey also found that on average, employees steal 5.5 times more than shoplifters on a per-case average ($715.24 vs $129.12).
One important control that retailers can implement is blind reconciliation of the register at the end of every business day. Posterita point of sale has a blind reconciliation feature as part of its web based POS system. The way it works is, when one of your sales associates closes your till, Posterita prompts the employee to count all cash and credit card slips and input the total into the point of sale system. The point of sale then prints out how much money should be there based on the days sales and notifies the employee if the total is correct or not. The idea is that this makes it easier for managers and employees to discover discrepancies. It also can help discourage employee theft.
This is just one of the many features Posterita uses in its cloud based software to help retailers minimize loss and implement accounting best practices, not just by managers but for staff too. This process of counting money at the end of each day, reconciling receipts and balancing the cash drawer creates accountability of the day’s revenue.