Who is robbing you and your company right now
Irina Narchemashvili, financial director of ATManagement Group, describes three ways to “leak” money from the company and explains how to prevent employees from robbing themselves and stop stealing from themselves
Every month, a business loses money that it might not lose. Incorrect work with prices, suppliers and the warehouse, lack of marketing, analysis of advertising and sales funnel, poor motivation system with large salaries. Plus mistakes with finances: when we spend someone else’s, we get into bad loans or don’t control our receivables.
Don’t be too scared. All that is higher, to one degree or another, is in every company. Yes, these are the flaws of the owner and managers, which must be worked with. But the letter is not about that.
Today we’ll talk about those who are robbing your company right now. And these are not gloomy masked men who open the safe with cash. It’s about your employees! And do not rush to throw stones at me.
I know that your company has loyal, kind, loyal people who will never steal for anything. But, firstly, even in my experience there were situations when I trusted a person, and then I was rigidly deceived. And, secondly, employee theft is not always theft in the truest sense of the word. Most often this does not happen on purpose, so even the employee himself remains in the dark.
How so? Let’s figure it out! I will talk about three options for theft, and in the end I will give one medicine for all.
Option number 1. They steal from you
If an employee imperceptibly tries to “rub” the goods from the warehouse or money from the cash register. If he is trying to write off “excess” products in his pocket or agree with the supplier about kickbacks, then this is a theft in the literal sense.
Caught? Get fired and don’t be fooled by excuses. The issue of damages can be resolved peacefully, or with the police through a court. Here I really want more.
Option number 2. You “steal” in quotation marks
This is when a company steals by asking for money for an inefficient expense item. And either they do not understand this, or – see paragraph one.
Here are some examples of how this happens.
The manager did not notice that the supplier raised the price, or did not attach any importance to this. You received an invoice for a large amount, on the “stock” signed and lost money. A marketer pays for advertising on Facebook every month, but does not notice that it has not paid off for half a year already. He continues to carry you bills, and you pay. The secretary buys the office “kilograms”, but the company does not need so much. The office manager’s bedside table has become a warehouse of pens and paper, but we continue to order. You’ll laugh, but I had a client who for several months paid for the Internet at the old address from which the company moved out. Just the system administrator tied his card, and the money was debited every month.
See if you are paying for something that you have not used for a long time or for something that does not bring financial return.
Option number 3. Robbed themselves
The owner often faces a difficult choice: what to pay first – advertising or credit? Salary or rent? And another million “or-or” that arise one way or another, because there is not enough money for everything.
So, in order to have enough money at least for the important, you need to correctly prioritize. The computer breaks. An employee asks to buy a new one. Buy it? Unlike the previous paragraph, this is the target expense that will need to be paid. You can only buy a new computer, and then understand that we are missing, say, advertising. And you can take an old laptop from a friend. And only when the money will be on the computer, buy a good replacement.
Do you understand what the point is? The owner often pays exactly to the employee who “screams” louder, but eventually steals from himself. This week we are paying for very important stationery, cookies and coffee machine repairs, but really important expenses are not enough … What should I do?
The solution to three problems:
Limit staff access to money / accountant / you.
Let them write written applications for the expenses of the next week and submit them on one fixed day.
In the application, in addition to the amount, ask to describe the purpose of the payment, its purpose, and what will happen if we do not pay.
Approve only targeted expenses, plan important expenses, avoid kickbacks and theft attempts.
Yes, this will not protect you from direct theft of the product, but it will solve a bunch of other problems.
Save time: 1-2 hours a week instead of standing requests to pay. No need to be distracted every half hour.
It’s harder to trick you. You analyze each application: if prices have risen strongly, it will be easier to notice.
Do not waste your money in vain. All non-targeted expenses immediately disappear, because now they won’t be able to “defend” them.
Do not spend more than you need. If you do not fit into the budget, then transfer the “patient” expenses for later.
The only negative is that it’s difficult to switch to such a system for approving expenses. Often employees and usually those who have something to hide resist. But you must admit, it’s better to wait a few weeks and stop wasting money than to remain “good” but “robbed”.