Five Simple Things You Can Do to Stop Internal Cash Shrinkage

    May 01 2014

    Whether you're running a local fixture in a quiet little town or you have your eyes on building a mega corporation that can go toe to toe with Canadian Tire and Wal-Mart, there's one ugly problem you'll have to deal with at some point down the line: shrinkage. While this simple word might not seem like much, it's a nice way of covering theft from your employees or others who help keep your business moving; something that canwreak havoc on your business' long-term viability. Thankfully, with a smart approach and the right tools, like currency counting machines, you can keep shrinkage to a minimum and focus on the big picture and growing your business for the future.

    Check into Security Tech

    The first step you can take is cutting down on all the "what-ifs" in your shop with a set of security cameras. While some employees might not be too thrilled with the idea of "Big Brother" watching over their shoulder, if you're dealing with internal shrinkage it's one of the best ways to protect the flow of cash into your business and have the evidence when dealing with a sudden shortage at the register. If you really want to go high-tech, biometric optionsthat scan employee fingerprints are available. However, a few cameras strategically placed around the shop or store should be more than enough to cover your bases.

    Put a Premium on Tracking Currency

    In addition to watching over your assets, having a reliable way of tracking the hard numbers is another big deterrent. With the help of currency counting machines and reliable recordkeeping, putting a verifiable number on what's moving in and out of your store takes the control out of the hands of those who might be causing the loss in the first place. Of course, adding in that this kind of tool can also help cut down on the other causes of dwindling funds – misplacement, miscounts and external theft – is a nice little perk as well.

    Protect Your Virtual Records Too

    Once you have a running count on funds, it's only natural to store these figures for later reference. Unfortunately, it's not like the old days where you could lock these files away in a cabinet and call it good. Now, viruses, computer crashes, and a wide variety of other tech threats can destroy your hard work in the blink of an eye. To keep this from happening and ensure you always have the right facts when you need a little reference check, stock up on all the essentials for protecting your virtual record copies– anti-virus, password protected terminals and system backups.

    Preventative Training

    Aside from bringing out some help on the technology side of things, simply sitting down and having a chat with your staff goes a long way toward putting an end to shrinkage. Whether it's when you hire a new member and sit down for orientation, or at the next company meeting, making it a point to talk over the risks and punishmentsthat come with attempting theft while on the job can help keep the consequences real for your staff and help turn bad decisions into simple afterthoughts.

    Understand What Drives Employees to Do This

    Finally, the biggest aid you can give yourself is to take some time to understand why employees commit acts that lead to more than $400 million worth of shrinkage in North America. Spending an afternoon reading up on the subject via Google, or getting in contact with other business' and industry groups that have experience with internal theft, gives you a little extra help in arming yourself with more information, leading to a tailor-made response that's custom fit for your business.

    Gino Lombardi

    Gino Lombardi

    Gino Lombardi founded CashTech Currency Products Inc. in April 2003. Prior to establishing CashTech Currency Products Inc., dating back to 1993, Mr. Lombardi was a member of the management team at Datacard Canada. Mr. Lombardi’s hobbies include stain glass design and creation, travelling with his wife and spending time with his four grandchildren. He resides in Woodbridge with his wife of over 40 years.

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    CashTech Currency Products Inc.
    1040 Cardiff Boulevard
    Mississauga ON, L5S 1P3