Cash
and Cashier Controls
Any
cash-intensive business needs to have cash control procedures in place
and monitored.
Below are some factors to consider when designing and
implementing cash and cashier controls in a restaurant.
-
Provide
a receipt for every transaction. Encourage customers to expect a
receipt by posting signs at each register.
-
Put
one employee in charge of setting up cash drawers. Have another
double-check the starting cash counts.
-
Make
each employee responsible for his/her own cash drawer. Issue one
cash drawer per on-duty employee.
Alternative: assign the manager to all drawers
-
No
other employee should be allowed to open or use another's cash
drawer.
-
At
the end of each shift, each cash drawer should be counted by someone
other than the employee assigned to the drawer and
double-checked by another.
-
Require
that the cash register drawer be closed after each transaction.
-
Never
leave a register unlocked when not attended. And never leave the
register key with a register.
-
Identify
each over-ring and under-ring.
-
Limit
the amount of accumulated cash in any register. Use a drop-safe
-
Keep
tendered bills on the register until the transaction is concluded.
Short-change artists frequently use large bills to pay
-
Conduct
only one transaction at a time.
Do not be intimidated into rushing.
-
Check
for counterfeit currency. The look of the paper and its
"feel" are usually the most obvious signs. A common
counterfeiting practice is to "cut corners" off large
bills and affix them to small-denomination bills. Inexpensive
devices are available to aid detection of counterfeit bills.
Employee
Theft
It
has been estimated that approximately 95% of all businesses experience
employee theft.
Early
Warning Signals of Internal Dishonesty
Signals
from personal behavior
-
Inconsistencies
by a staff member explaining discrepancies or errors
-
Bad
temper or unpleasant behavior that tends to discourage questions
-
Warning
signs of substance abuse. An employee with a substance abuse problem
will need extra money to finance a habit
-
Habitual
borrowing of store money or property without permission
-
Expensive
habits (drinking, extra marital affair, etc.)
-
Spending
more money than earned or what salary can support
-
Disgruntled,
belligerent attitude, complaining about management or job to others
-
Admission
of theft from prior employer
-
Concealed
family relationships or cohabitation among employees.
Signals
from employee activities
-
Secretive
conversations among employees, phone conversations that stop
abruptly when you approach. Anyone engaged in sending or receiving
cryptic messages.
-
Excessive
loitering of around your business of off duty employees,
ex-employees or friends.
-
Attempting to
distract or hold the attention of a supervisor for no good reason
while another employee is in the work area or signaling by hand
gestures, whistling, etc. when a supervisor approaches.
-
Repeated
violations of such security regulations as use of unauthorized exits
or keeping personal packages in the work area. Finding an employee
in an area he/she has no legitimate business in.
-
Habitually
returning to the work area after others have left to retrieve
something left
Frequent cash shortages on the same employee's shift.
-
An
unusual eagerness to "make up" the shortages rather than
relinquish cash handling responsibilities.
-
Frequent
cash overages on the same employee's shift. This may indicate that
an employee is stealing cash at the register but not "light
ringing" sales enough to totally cover it.
-
Unusually
high number of "no sale" transactions registered on any
one shift.
-
Voids
left unrecorded until the end of an employee's shift.
-
Receipt
slips held by an employee until the end of a shift or notes found in
the trash.
-
Employees
making excuses for theft. Employees
who steal rather than believing theft is wrong, may condone the acts
of dishonest employees as, "It's no big deal. It was only a few
bucks."
-
Employees
who violate restaurant policies and procedures should be watched.
-
Overzealous
work habits. Employees who work through their lunch breaks, seldom
take a breather and never ask for time off may be running a game
with the register. Also, employees who refuse to go on vacation may
be afraid that their substitute will discover their dishonesty.
Signals
from customers and outsiders
-
Frequent
customer complaints of shortages or substitutions in orders.
-
Unusually
large or frequent credits or refunds by one employee.
-
Anonymous
phone calls or letters concerning theft.
-
Unusually
friendly relationships or loyalty between employees and outsiders.
-
Any
Customer who insists that only a certain employee handles their
sale.
-
Presence
of delivery drivers, repairmen, etc. in restricted areas.
-
Frequent
hang-up phone calls to a substitute employee working a shift
normally handled solely by another employee.
-
Customers
who visit your business an unusual number times daily, or who loiter
in your business for an excessive amount of time.
-
Customers
who meet with employees regularly at unusual times, such as at
closing.
What
you can do
-
Inform
employees about internal security measures, e.g., surveillance and
inventory checks
-
Discuss
the likelihood and consequences of being caught stealing. Many
employees steal because they think they can easily get away with it.
-
Limit
employee access to the building to the hours that they are scheduled
to work.
-
Get
your employees involved - Offer rewards to employees who report
theft. Ask your staff for their suggestions on how to eliminate
theft.
-
Employee
background checks - contact previous employers to find out if this
person had a theft problem. When employees are not screened
properly, you spend more time and money training new employees to
replace dishonest ones.
-
Conduct
mid-shift drawer counts.
-
Keeping
the cash register drawers low in cash also helps to deter would be
robbers. When they see only a small amount of cash in the register,
they are less likely to take the risk of getting caught and going to
jail.
Inventory
and usage sheet
Conduct
inventories often and at irregular intervals. Also make routine spot
checks. Inspect records of purchases and sales at the beginning and end
of each shift. Define individual employee responsibilities for inventory
control. This establishes a climate of accountability.
Video
surveillance
Often
just installing cameras will cause employees to think twice before
stealing. But in order for them to be effective, you need to let your
employees know you check these by offering them feedback (Positive or
Negative) based on their job performance by viewing these videos with
them.
Brian McMillan is Director of Product Development of In Sight Commander System, Inc.
a software development company specializing in restaurants and video surveillance systems.