Employee theft is often cited as the most common type of theft within small businesses. As a first step in theft prevention, carefully screen job applicants before hiring a new employee. Background and reference checks are especially crucial for positions in which the new hire will be handling money. Ideally, a background check should include a check of police records. Next, keep up to date inventory records and audit the inventory on a regular basis.
Many firms audit quarterly, others bi-annually.
Generally, the more frequent the inventory audit the better able you will be to spot and correct the problem. When records are poorly maintained, the chances of theft increase because the chance of being caught decreases. Careful training and supervision of employees and routine record keeping and review of inventory remove easy opportunities to steal. Only a few specific employees should have keys to the business. Installing time locks and alarms can also help prevent theft.