Don't Let Theft Happen in YOUR Business: What You Need To Know About Essential Restaurant Controls

Consider the saying, "the only people who can steal from you are the ones you trust." Unfortunately, there's a lot of truth to that statement, particularly in a small-business environment where the people who are in a position to do the most damage are often a fellow partner, manager, bookkeeper, employee or a key supplier.

All too often we hear firsthand, real-life accounts of how one of these "trusted" parties took full advantage of the relationship and over a period of time ended up illegally converting tens and even hundreds of thousands of dollars of goods and/or cash to their personal use.

Another prudent adage is "only do business with people (or companies) you can trust and then don't trust them." Put another way, trust is not the issue; the issue is that when you, knowingly or unknowingly, grant anyone uncontrolled access or authority over any part of your restaurant, you're vulnerable and exposed to losses and, potentially, a financial disaster.

Yes, It Can Happen to You

Even more than other types of small businesses, restaurants are ripe for the potential of fraud and abuse. Think about it. What do restaurants usually have in plentiful supplies? Answer: cash, food and alcoholic beverages that are overseen by an owner who is often naturally trusting of others and not well versed in basic business controls.

Never underestimate the lure of quick cash and the lengths some people will go to get it. -- Jim Laube

Surveys tell us that business fraud is prevalent. A study by KPMG, an international accounting and audit firm, for example, reported that 75 percent of organizations experienced some type of fraud during the prior 12 months, with employees being the perpetrators the majority of the time.

It also appears that anyone can commit theft or embezzlement against their employer. Profiles of those who carry out these crimes differ very little from the general population. They tend to be married, educated beyond high school, have a work history of one to 20 years, are in age from the teens to the 60s, have no arrest record, and are even likely to belong to a church.