Another Reason to Require Vacations - Minimizing Employee Theft

Theres Starbucks Vending Machine powerful embezzlement prevention tool that many big businesses use and that Unique Vending Machine should probably consider: Require regular vacations of a week or two. (Banks almost always do this.)

This sounds terribly counter-intuitive. But heres the rationale: Some embezzlement schemes are so Cigarette Vending Machine For Sale that theyre almost impossible New Vending Machine catch. The one typical weakness of these super-clever schemes, however, is that they usually require ongoing maintenance on the part of the embezzling employee. By making the employee take a vacation, you can see what happens when the employees not around. Here are a couple of examples.

One embezzler (actually my junior high math teacher) who managed a concession stand had a simple but clever technique: He always pocketed a few hundred dollars of cash Coffe Vending Machine each week. This scheme worked for years. The owner assumed that cash sales were typically about $4,000 a week, even though they were really quite a bit more than that, and that he was losing about $200 a week of ice cream Soda And Snacks Vending Machine Ontario soda Coke Bottle Vending Machine and popcorn because of spoilage and, perhaps, a little shoplifting.

The concession stand manager never did take a vacation, but he did eventually have a heart attack. And a funny thing happened. Cash sales increased overnight (literally). Even more dramatic, profits jumped because sales increased while expenses stayed level. When the owner looked into the situation Cash Acceptor Vending Machine the employees absence, he figured out that sales and profits had increased because the employee was no Skybox Personal Vending Machine pilfering cash from the till.

Another embezzler who got tripped Food And Water Vending Machine Seattle Distributor by a vacation requirement was a salesman selling profitable remodeling jobs for a company Ill call Homies Vending Machine Construction. His scheme was to have every fourth or Vending Machine Legal Agreement job done by a company he had Vending Machine For up, which Ill call ABC Remodeling. He regularly used the resources and reputation of ABC Construction to sell a remodeling job for ABC Remodeling and thereby collect the Toy Vending Machine percent profit his employer (ABC Construction) would have made rather than his usual 10 percent sales commission.

As long as he stayed in town, his little ploy worked Buy Used Vending Machine well. He Vending Machine En Puerto Rico answer all his telephone callsboth those from ABC Construction customers and those from ABC Remodeling Coffee Machine Uk Vending Vending Machine Codes any problems that surfaced for either set of customers. When he went on vacation, however, the whole thing blew up as soon as an ABC Remodeling customer called ABC Construction to ask about a remodeling project in progress.

About the author: CPA Stephen L. Nelson wrote bestselling books on Quicken and QuickBooks. More recently, hes been writing downloadable do-it-yourself guides, including Information about the Corporation, and Costs & Benefits of Incorporation, Incorporating a Business in California, and Incorporating a Business in Illinois.