Ho Ho Hope Shoplifters Don’t Walk off with Your Merchandise?

December 1, 2014 by Leave a Comment

shoplifting1Shoplifters love this time of year. There are more people in the stores to help conceal their nefarious activities. There is also great new merchandise and a wide selection, plenty of stock in depth helps them also. What can you do?

Many of you are our customers already and have Checkpoint Systems and also utilize Alpha High Theft Solutions’ products. Unlike your unprotected neighbors, you have a serious advantage to control the thieves. The advantage for you is that your neighbors’ unprotected store merchandise is like a magnet to the shoplifters. When presented with equal valued merchandise that is protected by Checkpoint and Alpha or not protected, the shoplifter will certainly go after the unprotected merchandise.

As a Loss Prevention Systems customer who has purchased your system through us, purchases labels or tags or have PM agreements, you are also eligible for ongoing LIVE training. Our “Shoplifting, because LOSS is a four letter word” training will prepare you and your staff to deal with the shoplifter. This training teaches you how to go on the offense with shoplifters while delighting your good customers.

Keep in mind that we suggest that you use this training for existing and new employees. Because it is live we make it interactive.  Therefore it is a great refresher or ideal for a new retail associate. We will conduct these sessions as reasonably often as you need them. Just call us to schedule.

If you are not a Loss Prevention Systems customer and are interested in this training, simply call us for pricing. We will be happy to assist you.

Shoplifting is simply a business problem that we help you deal with utilizing business proven, commercial grade solutions and techniques provided by professionals that know shoplifting. As the founder and CEO of Loss Prevention Systems, I have dealt with shoplifters all the way from apprehending them during my store detective days to the Board room. With a degree in Industrial Security and over 35 years of experience personally, we are there for our customers. LPSI’s commitment goes on long after the sale.
Our shoplifting training covers:
-The law in your state
-Who is the shoplifter?
-How to spot a shoplifter
-How to go on the offense with them while providing a great atmosphere for your good customers
-What to do and not to do, if you have to confront a shoplifter
-And much more.

It is not too late to get on the schedule. Call today!

Have a great and prosperous holiday selling season!

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Prevent Shoplifting During This Holiday Season

November 21, 2014 by Leave a Comment

shoplifting2The security of your retail store during this holiday season is an important part of your business. Shoplifting prevention and employee theft are more critical during this time of year, and having your store prepared for this can be the difference between profits and losses. To read more about this follow the links below.

5 Quick and Low-Tech Tips To Prevent Shoplifting in Your Retail Store

As a small business retailer, it’s not always easy to just throw money at problems like shoplifting and take advantage of all the technology that big box retailers may be privy to. Whether it’s cameras, door scanners, or facial-recognition software, sometimes their big-ticket cost just doesn’t fit with your small business security budget.

But when you recognize facts like shoplifting costing retailers upwards of $13 billion each year, it’s important to identify it as a problem that needs to be dealt with.

So, what’s a boutique owner to do? In this post, I’ll be looking at cost-effective and low-tech tactics that you can start implementing right away.

Let’s dive in.

1. Keep Your Store Organized and Products Well-Placed

How easy should it be to identify whether something has gone “missing” from your store? Empty space on your shelves should be enough of a visual cue to signal something has gone wrong.

Holiday Shopping: More Shoppers, More Theft — Prepare Your Business

The holiday season can be a stressful time for most people, not to mention retailers. With the seasonal shopping season starting earlier and earlier each year, many small businesses are scrambling to order inventory, ensure their shelves are stocked, all the while decorating their storefront in a way that will entice customers to come in and shop local.

While some may complain about the commercialization of the holiday season, there is proof in the “figgy pudding.” According to the National Retail Federation, holiday sales represent approximately 19.2 percent of the retail industry’s annual sales of $3.2 trillion. And that’s not just for the big box stores and e-commerce giants, the upcoming holiday season is extremely important for small business owners. It’s the biggest revenue driver of the year, and can keep a business afloat or sink it. However, the increase in potential shoppers, brings an increase in potential theft. Seasonal shoplifting can be detrimental for small businesses owners, who are trying keep their doors open for another year.

Opiate epidemic

The message, delivered Thursday night to a standing-room-only crowd at the Wood County Educational Service Center, was clear: the opiate epidemic in Ohio, and Wood County, is a community problem.

And the problem must be solved by a community-wide effort.

The Opiate Epidemic Town Hall meeting, presented by the Wood County Opiate Task Force, featured a panel of experts on the subject from a variety of fields.

The issue of opiate addiction has ramped up in Wood County, and nationwide, in recent years. In the U.S., someone dies from an opiate-related overdose every 15 minutes. Some addicts begin with an addiction to prescription painkillers like Oxycontin and Vicodin, obtained legally or illegally, and then move on to heroin – which has become cheaper and easier to obtain.

Heidi Riggs, of the Ohio Attorney General’s Heroin Unit, shared the story of her daughter, Marin, who died in 2012 at age 20 of a heroin overdose. Marin, despite a variety of gifts, dealt with a self-esteem problem that led to her addiction.

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Gambling and Embezzlement – It’s That Time of Year

November 21, 2014 by Leave a Comment

theft (2)Anyone with a business knows the holidays bring a distinctive set of challenges. For many owners one of the biggest is the increased risk of loss and fraud through consumer theft. Other owners are relieved that they aren’t in those kinds of businesses and believe that they don’t need to “worry about all that stuff”. But, they forget about or ignore employee theft.

All businesses are subjected to the increased possibility of theft around this time of year. The holidays are exactly the time to monitor employees and financials for signs of embezzlement. There are a few reasons why incidents of embezzlement are more likely to start or increase now. One of them, that’s regularly overlooked, is gambling addiction.

The Marquet Report on Embezzlement is the culmination of a 5 year study which looked into employee misappropriation. It found that gambling addiction is one of the top 2 reasons people embezzle. Therefore, it’s important for an employer to be aware of this issue and to know what to look for, especially now.

For most people increased stress is a given in the months of November and December. Gambling addicts respond to stress by gambling more and when they gamble more they lose more. They then gamble more to try to cover their losses, get back to even, or hit the big score. This leads to more losing and the cycle continuing. Inevitably, they run out of money and accumulate debt they can’t repay.

Because of the season money irregularities can become more pronounced in their domestic situation, triggering more stress, lies and gambling. Gambling addicts will go to drastic measures to cover up their addiction. Now, feeling more pressure, they may embezzle for the first time or steal larger amounts.

But, this doesn’t happen in a vacuum, there’re always signs along the way that something is wrong. Some of the signs to look for include the following.

  • Giving flimsy excuses or lying about absences during the day. This can be more pronounced in areas where there’s a gambling venue.
  • Inappropriately defensive or dishonest when talking about spending habits or income.
  • Asking for advances on pay and/or frequently borrowing money from co-workers.
  • Excessively talking about and showing interest in gambling games, venues, beating the system, odds, etc.
  • Suspiciously guarded and controlling of the company’s financial records.
  • Taking financial work home, even though there’s time to do it during the business day.
  • Insisting on being in charge of bills, invoices, payments, receivables, dealing with vendors, etc.

Embezzlement can emotionally and financially devastate an organization. At best it‘s a violation of trust and at worst it can cause a business to go bankrupt. Nobody likes to think about or have trouble this time of the year, but a good manger doesn’t ignore problems no matter what the season.

Nicole Abbott – writer, educator and psycho-therapist

 

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Shoplifting News

November 18, 2014 by Leave a Comment

shoplifting5These are some of the articles and news concerning shoplifting around the country. As the busiest shopping season begins, retailer stores and their management are more vigilant about shoplifters and how to deter them from entering their store and walking away with merchandise. To read more about shoplifting, follow the links below.

Burglar Returns After Veterans Day Break-In of Paratrooper’s Home. This Time The Soldier Is Waiting.

After a man recently broke into his house on the night of Veterans Day, Andrew Myers, a paratrooper from the 82nd Airborne, decided he would not become a victim again.

Meyers posted his story, along with video, to LiveLeak:

“‘I installed motion sensors and door chimes immediately and sat on edge… it only took 2 days for him to return but this time after finding the bottom door locked, he just made his way around my house to attempt to gain entry upstairs (where my GF and dog are).

Once I told him he wasn’t coming in, and wasn’t leaving till he talked to the police he struggled to get away and tried a huge haymaker on the porch and ate an uppercut for his troubles.(off camera)

He was just about “out” on the porch but I realized I wanted anything that happened to be on camera so I drug him down the stairs. The rest can be seen on camera…’”

Meyers also set his clip to music and posted it to his YouTube account Sunday. Fox and Friends then showed the video this morning and it’s gone viral as a result.

Shoplifting costs nothing……or does it?

(NBC) – A new study finds shoplifting costs US consumers hundreds of dollars a year.

According to the business website Checkpoint, shoplifting, along with employee theft, costs US businesses $42 billion per year.

That turns out to an annual average of about $403 per US household.

The most frequently stolen items include clothing, mobile phone accessories, power tools, wine and make-up products.

Woman Leaves Baby Behind Fleeing From Shoplifting Accusation

A Lexington woman is behind bars after police say she left her nine-month-old child in the lobby of a Walmart after she was confronted about shoplifting.

The arrest citation says 30-year-old Samantha Lyons went to the Walmart in Hamburg on Tuesday afternoon with her nine-month-old and the child’s father, and that surveillance video caught her putting store items inside a bag.

The citation, which also refers to Lyons as Samantha Baker, says as she tried to leave, she was confronted by loss prevention and that is when Lyons, along with the child’s father, ran, leaving the baby behind.

It’s unclear what happened after she fled, but she was arrested back at the Walmart around three hours later.

Documents say Lyons admitted to stealing the items from Walmart.

Lyons is charged with theft by unlawlful taking and abandoning a minor. She is expected to be in court Wednesday.

Police have not released the father’s name. It’s not clear if he faces any charges.

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Preventing Theft This Holiday Season

November 12, 2014 by Leave a Comment

shoplifting3Theft this holiday season is not something out of the ordinary. Shoplifting happens daily all across the globe. The United States alone loses billions of dollars each year due to this crime. Authorities and the retail industry collaborate with each other to prevent or ameliorate the amount they lose due to this crime. During the holiday season, stores are busy and management and employees have less time to keep an eye on the customer, making it easier for shoplifters to get into the store and snatch something. Prevention can save you thousands of dollars; protect your store, your profits and your employees this holiday season.

Holiday theft season approaching

Every year as the holiday season approaches, thefts and other related crimes begin to trend upward, more so as the Christmas holiday looms closer.

Misdemeanor shoplifting thefts are not the only crimes that climb during the holidays. Residential and business burglaries also rise significantly.

Preventive policing by the Harker Heights Police Department helps to lessen these property crimes. Preventive measures include neighborhood and business patrols.

The Harker Heights Police Department has in the recent past positioned the city’s public safety command vehicle in the parking lot of Market Heights during the holiday shopping period, providing a police presence and rapid response for business owners and the shopping public.

Such a strategic move not only serves to provide the public with an immediate crime reporting station, but it also serves as a deterrent to criminals who would seek to victimize businesses and the shoppers they serve.

Season’s thievings

With the Christmas season just around the corner, police in Maury County are preparing for one of the most common holiday crimes: shoplifting.

So far in 2014, shoplifting incidents in Columbia have been reduced by 20 percent compared to last year, Columbia police Lt. Joey Gideon said Friday.

But, he said, shoplifting does tend to occur more often during the holiday season than during any other time of the year.

“After Black Friday, the stores start getting more crowded, and it’s easier for shoplifters to go unnoticed,” Gideon said.

Must-do identity theft protection tips for holiday shoppers

As you race hither and yon to the mall, to the grocery store or to grandma’s house while spreading holiday cheer, that jingling sound you hear is probably not sleigh bells. If you’re not careful, that might be the sound of money flying out of your pockets and into the hands of the crooks that target holiday shoppers.

Identity theft doesn’t just happen online. Crooks can pilfer your personal information right out of your wallet or cellphone unless you take some steps to be extra vigilant during the holiday shopping season.

Here are some simple, must-do measures to keep in mind over the next few months:

  • Streamline your wallet. Leave anything you don’t need, such as your Social Security card (you should never carry it in your wallet), your library or wholesale club card, and excess credit cards at home. Only take the credit cards you know you will use.

 

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What Is Your Return Policy This Holiday Season?

November 7, 2014 by Leave a Comment

theft (13)Many stores around the country accept returns without a receipt. Some have date restrictions, or a credit transaction look up if you do not have the receipt, but others let you exchange or return merchandise with only an id. Wal-marts’ policy time restriction is 90 days with some exceptions with electronics, otherwise you can get a cash refund for purchases under $25 dollars or store credit for purchases of over $25. Target, office Depot, Lowes, Kohl’s and other stores do not require a receipt, although they can look up the transaction with your membership or credit card transaction. Making your policy clear on purchases this holiday season can save your business money and avoid the confusion with your employees about the return policy of the store. For more information about shoplifting, follow the links below.

Shoplifting suspect arrested after running out of gas during chase

The Atlanta Journal-Constitution

Snellville police nabbed a suspected serial shoplifter earlier this week after a harrowing chase through five jurisdictions that ended when the suspect ran out of gas.

Carl Ashley Thompson, 30, of Ball Ground, was taken into custody Tuesday. He faces a slew of traffic violation charges, along with three counts of felony theft by shoplifting, fleeing or attempting to elude a police officer, criminal trespass and for possessing drug-related objects.

No one was injured during the chase, which began when an officer tried to stop Thompson around 3:40 a.m. for speeding – going 51 mph in a 35 mph zone. The officer also noticed that the car had no license plate.

Shoplifting leads to drug discovery

COOKEVILLE — A reported shoplifting led to more trouble for one Cookeville woman.

According to a police report filed by Cookeville Police Officer Kenneth Frye, it began with a reported shoplifting around 3 p.m. Friday at Kohl’s department store on Jackson. A female was reported to have left the location without paying for some items.

Dispatch gave him a description of the vehicle and the tag, which he located traveling south on South Willow Avenue. He stopped the vehicle in the area of 851 S. Willow Ave. and came into contact with the driver, identified as Fawn Price of Top Road, Cookeville.

“During a consent search of her person, I located a black “straw” with white residue,” Frye’s report states. “Price told me that she used it to ‘snort’ Hydrocodone.”

Addicts target Wal-Mart in shoplifting scheme

INDIANAPOLIS – Feeding a heroin addiction often means addicts resort to stealing – from friends, family and businesses.

For former heroin addict Ashley Milburn, it meant a shoplifting scheme involving a group of women earning hundreds of dollars a day illicitly by scamming Wal-Mart.

Milburn, now serving time behind bars, spoke to Call 6 Investigator Rafael Sanchez about how she used to steal from the big box retailer – and how she’s sure her fellow heroin users are still going about it.

The key to the scam: Wal-Mart’s no-receipt policy for returns.

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Tis The Season To Be……Robbed

November 6, 2014 by Leave a Comment

shoplifting1It is getting darker outside earlier. The season brings more than that to us. The pressure on everyone including the bad guy’s increases. This coupled with drug addictions, personal problems and more will make retailers a tempting target. After all you tend to have a lot of cash around or at least the perception of more cash in the drawer is there.

We really don’t care why it happens the real concern is how do we keep it from happening to us? You can reduce your risks with a few simple, cost effective and for the most part common sense measures:

  • Drain your Cash Drawer – Your drawers start out the day with a set amount usually in the neighborhood of $100+/- in cash. Set up a schedule and make it someone’s responsibility to drain the drawer of cash every few hours. An easy way to do this is to pull out the all the large bills such as $50’s and $100’s. Leave only enough of the others to make change. DO NOT think that by hiding them under the cash drawer that no one will notice. Everyone knows this. Pull the money out and seal it in an envelope. You do not even need to count it at this point. Put the sealed envelope in the safe. If you have more than one POS then write the POS number on the envelope. An even easier way to do this is to invest into a simple drop safe that costs around $100 (we can point you to a great vendor for this). You can install a drop safe yourself. It simply bolts under the POS in the Cash/Wrap. They have a slot that you can drop envelopes or just loose bills into. I think the best ones are the ones that use a padlock. Inexpensive and easy to keep up with. Then at the end of shift you simply pull that money out and take it to the back with the till. WHY are we doing this you ask? Most robbers come in and look at your drawer before they hit you that day or another. Having a drawer full of succulent cash is like waving tax money in front of a politician. They simply can resist.
  • Lighting – Get your lighting both inside and outside up to speed. Replace burned out bulbs and ballasts. If your landlord is responsible for any of this then now is a good time to send him an email (finish this article first though as I have a few other tidbits for you). Dark attracts the bad guys.
  • Observe and report – If you see someone suspicious then ask the police to drop by. Speaking of that, do you have a relationship with your local Police Department or are you just another store in the crowd? Granted this is sometimes easier in smaller communities. But large departments will also respond with the right incentives. Make it known that you like their presence there. Coffee and a warm place to write a report helps. Call and ask for a supervisor to drop by (non-emergency). Ask the Sargent what is going on in your area. What suggestions does he or she have for you? Their opinion counts to you, let them know that. Can they have an officer come by as your folks are closing to make sure that everyone is safe? Being a former Police Officer I know that the Police would rather do that then deal with a robbery.
  •   Deposits – I strongly recommend that you do not take deposits to the Bank at night or closing. All the bad guys need to do is see who is showing up at the night deposit. Again it is like candy to a baby. Instead lock your deposit in your safe and take it late morning or lunch time. That is a good reason for you to get away for a few minutes anyway. Instead of that frozen meal in the microwave you can actually recharge your brain battery for a few minutes. Speaking of deposits. Conceal them by putting the deposit envelope or bag into something else. Don’t be obvious.
  • Discuss with Staff – Your people need to be in the loop. Many people treat this as something that will never happen to them. And of course we hope it won’t. But although a nice thought that is like expecting that world peace will really happen someday. I have a list of simple discussion points that I will be happy to send you free of charge, obligation…. just send me an email or call. I also see Managers and Owners that think they will scare their employees by discussing it up front. People including that 18 year old first time employee are tougher than you think. Remember, this is really about their safety not the money.
  • Give Freely! – Last but not least, if someone presents you with the business end of a gun, knife, hand grenade, tank…. (You get the picture) then give them the money and get them on their way as soon as you can. Your duties are the protection of yourself, employees and customers. The money is a small mater when a robbery occurs. As soon as they leave lock the doors, THEN call the police. Robbers have been known to come back when they did not think that they got their fair share of your profits. Do not open the door for anyone except a uniformed police officer. You need to protect and keep your employees and customers there. This will also help to insure that these witnesses are there when to police are on site.

Again contact us if we can help.

Let’s have a profitable and safe holiday selling season!

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High Profile Cases

November 6, 2014 by Leave a Comment

shoplifting7A high profile, professional athlete was arrested recently for shoplifting. Allegedly, he paid for a bottle of cologne and then proceeded to the menswear department. He placed a few packages of underwear in his shopping bag. At the point of his apprehension, he was also found to have a “tester” bottle of cologne in his bag (unpaid for) as well. He is not the first athlete/ celebrity to be caught shoplifting, and most certainly will not be the last.

A similar situation would include a shoplifter who is related to (or claims to be related to) a high profile personality. It is a frequently used tactic that a shoplifter will try to intimidate their accusers by name-dropping congressmen, chief or police, celebrity, etc. More often than not, these claims are unfounded, or play no significant role in an investigation. For the few times that the claims are true, your store will have more to contend with than the loss of merchandise.

These high profile shoplifters do not steal out of need. They clearly have the money to pay for such items. They are stealing out of boredom, entitlement, or simply because they are looking for a challenge- to see if they can get away with it. Their crimes are not necessarily expensive items; sometimes it can be simple items like underwear, health and beauty items, even food items. This means that it is not improbable that a celebrity can shoplift from a small, local store.

That being said, it is not a common occurrence for a store to experience a shoplifting incident by a high profile person. It is merely a fact to keep in mind while you are making shoplifting apprehensions. You never know whom you might be picking up, so it is best to make sure your policies, practices and actions are completely by the book for each incident.

After making an apprehension, the suspect might try to bully their way out of the situation by telling you who they are, or who their relations are. This is the time to be professional, avoid making sarcastic or snarky comments and stick to the facts. If they truly are a high profile personality, every little step may be dissected and criticized later on. The media outlets will inevitably catch wind of the apprehension and will try to make it a bigger story that what it needs to be.

You can be faced with news reporters, bloggers, fans, etc coming into your store. Some will just look around to see the now infamous store. Others will come in and try to make trouble- asking questions, making comments, even potentially making threats.

I worked loss prevention for a retailer, who many years ago made an apprehension of a very famous actress. Even though the case was air tight, national news sources hovered throughout the entire process. Statements had to be made to ensure the integrity of our company’s reputation remained in tact. At the same time, it was very important that our own legal team was involved to make sure we did not overstep the legal boundaries of an open court case. If for some reason the apprehending officer made statements to the media, and the case was lost in court, we could have had potentially disastrous civil liability cases brought against us by the actress. On the day the verdict from her criminal trial was to be released, every one of our stores across the country received numerous threatening phone calls. Some merely threatened to never shop with us again if “we” found the actress guilty of shoplifting. Others had more severe threats of violence.

With the increased chance of media scrutiny during a high profile shoplifting incident, retailers can often find themselves faced with more variables and consequences than what was anticipated for a seemingly routine shoplifting apprehension. Without black and white policies in place, the added liability from a case gone wrong can have devastating and lasting consequences both to a retailer’s image, and their financial bottom line.

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Court Room Drama

November 6, 2014 by Leave a Comment

law-3If you have never been in court before, it can be a very eye opening experience. There are similarities between TV courtroom proceedings and real life, but the overall experience is very different. If you are planning on prosecuting shoplifters or employees for theft, it is important to understand this step in the process.

Working within the court system is essential to ensure the employee or shoplifter has an official record of their wrongdoing. This criminal prosecution provides concrete evidence against an employee or shoplifter of their alleged acts. This record makes it easier for potential employers to understand an applicants past history, an indicator of their future reliability.

Here is how the process generally works. At the time of a shoplifter’s apprehension, or the completion of an employee theft interview, local law enforcement will be called in. This could be the city police, county police, or even the local sheriff’s department based on your individual store’s location and jurisdiction. If you have multiple locations, understand the jurisdiction might be different for each one. Specifically knowing which department to call ahead of time will simplify the process during an actual incident.

The responding law enforcement will ask a few questions from you. They will take a statement from both sides, and usually ask to see any video available. This is the initial opportunity to present your evidence against the suspect. This is not a time to hold back actual evidence you may have, or give unsubstantiated opinions as evidence.

Law enforcement will take the suspect into custody (if applicable) and file a police report. You may need to go down to their station to fill out additional paperwork depending upon the local protocol. From there papers will be filed with the court system. You should receive a subpoena stating the time, date and place of the court case for your suspect. Understand that it might take a few weeks to several months for this to happen. It is all based upon your local court’s current caseload.

During this downtime, you should ensure that you have created a case report with statements explaining each step of the shoplifting incident, any statements made by the suspect, any paper evidence, a detailed listing of merchandise stolen (size, style, UPC or SKU, color, quantity) photos taken of the suspect, their ID or the merchandise, employee ID, and any video evidence. This case report needs to be kept in a private, locked file cabinet or other place that eliminates contact or access by other employees. Any deviation may allow the defendant’s attorney to question the integrity of the chain of evidence and speculate that it has been tampered with.

When you are set to go to court on the specific time and date given, make sure you show up early and bring your case report with you. Law enforcement may have requested copies at the time of the arrest, but it is better for you to not rely on law enforcement to bring it with them. They have so many cases on a daily basis; they may not remember months later what they were given. It is your responsibility to prove the suspect guilty based upon your evidence. If you show up with nothing, the suspect may be found innocent. Bring the report and file with you.

When you show up, find the prosecuting attorney. They are the ones presenting the case on your behalf. Show them your file, your video, and answer their questions. They are not trying to pick your case apart; they just need to have a full understanding of what they can present to the defense attorney and the judge. Arriving early allows you enough time to best prepare your case with the attorney and have better end results.

While you cannot dictate that a suspect is charged with a specific crime (felony theft vs. misdemeanor theft) you are allowed to let the attorney know that the suspect is not to return to any of your store locations. If so, they will be charged with trespassing.

At this point the attorney will confer with the defense attorney. They will try to work out a plea bargain, which the suspect hopefully will take. They may not stick with the original charges, but a plea bargain will save you countless hours and trips back and forth to the courthouse for an actual trial.

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What You Should Be Auditing

November 5, 2014 by Leave a Comment

theft (11)When you work for yourself, you often spend a lot of time inventing the wheel. There is no corporate policy already in place for your stores to adapt. No one is there looking over your shoulder and telling you what records to keep and for how long. Sure, you probably have an accountant somewhere helping you with some record retention requirements. There are other IRS and tax records that you keep for a certain period of time. Overall, it is up to you to make these decisions and have a standard in place.

One area that can be difficult to make your own standard is having an internal audit. While it is a chore to come up with the questions and audit points, the payoff of having a better standardization and in store accountability will far exceed the trouble you put into to establish an audit.

One of the best places to start is by researching Sarbanes- Oxley. The Sarbanes- Oxley act of 2002 is a set of legal requirements that all organizations, regardless of size, must comply with. It basically regulates financial practices, after several companies were found guilty of falsifying their own financial records. The company’s biggest fallout was that they ended up devastating thousands of their own employees financially.

The ultimate point of the act is that companies are required to provide accurate and truthful information as to the company’s financial status. Over inflating sales, inventory, amongst other practices, to give a deceitful impression of a company’s success is now illegal. Companies must retain records of their financial status to ensure accuracy at all levels.

The easiest way to do this is to perform self-audits in key areas. These audits should be done daily, weekly, monthly and yearly, depending upon the task. Hiring a consultant can provide you with the legal specifics to keep your company on the up and up. Understanding the basics ahead of time can help you decrease those consultation costs, as you will already have some practices in place.

The first place to start is with your inventory. Understanding a cradle to grave approach to your product will not only help you with accuracy in your auditing, but keeping a closer eye on your product will help you decrease your shrink over the long term. Your starting point is with your receipt of goods.

Each shipment of inventory you receive should be documented and a bill of lading retained and filed by month. On each BOL should be the signature of who received the items, the date and time received, and a check mark or tally of what was received- either by piece, box or pallet.

Next, you should maintain listings and reports of items that are taken out of your inventory for a specific reason. If they are damaged and thrown out, sent back to a vendor for credit, used in the store, stolen, etc. There needs to be a paper trail attached to where these items have gone and why. A signature, or employee ID or who reallocated the products disposition should be included with these document (also retained and filed by month).

If you are still using paper sales receipts, including paper journal tapes, those records need to be filed by date, and then month. This is your listing of what merchandise has left your stores and is your proof that these sales actually happened and were not fraudulently contrived. If you have an electronic sales tracking system, you still need to have paper documentation of these sales retained somewhere in case of a computer glitch, etc.

Finally, all returns must be retained and spot-checked for accuracy. Since returns are another way for inventory to come back into the store, it is an important process to verify that these returns are accurate. Look for multiple transactions of the same item, or significantly larger dollar transactions. These are the returns that are most likely to have been done in error (over inflating your actual inventory) or can point to an employee’s dishonest activities.

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