Internal Audit

An important, but often overlooked part of running a successful (read: profitable) business is conducting internal audits. An internal audit helps give you a base line of how your business is operating, and whether operational procedures are being followed.

Even if you are making your sales numbers and gals, you might still be missing out on maximizing your profits if operational processes are not followed- costing more than what you may realize. One of the potential areas you might not be loosing is in inventory and merchandise costs.

If you are loosing sales because you do not have the right inventory in place, you are missing a huge opportunity for profit. When those lost sales are because you have employees or shoplifters stealing your merchandise, you are hit three times financially- once for the lost sale, and twice in your cost of goods, since you have to buy the item twice to sell it to a customer once.

Internal audits are a control mechanism within your store. When employees are more cognizant that their execution of tasks and processes will be tested at any point in time, they will be more apt to comply with the correct way of doing these tasks. When they are called out for failing their part of an internal audit, the employees understands that their lack of suitable job performance can lead to counseling and up to termination for repeat offenses. As employees are more willing to execute to your standards, the openings for employee theft and shoplifting are reduced.

We have found repeat evidence that almost all crimes committed against a business are because of a procedural breakdown. Had the store employees been more aware of not only what they were doing, but how they were going about doing it, the procedural breakdowns would not have happened, and the crimes would have been harder to commit.