Employee Theft Prevention & Cash Drawer Reporting



(Brian Henderson): I’ve had a few questions from customers recently regarding employee theft prevention. What I’m going to show you today are some of the built in features of this software in helping to prevent employee theft and also how to generate reports which help you quickly, very quickly highlight where something went missing, for example. Ordinarily when you log into the software you’re able to go ahead and just start ringing up sales right away, but what I’m going to do is change a setting that causes you to require to do a money count before and after each shift, and just from my own personal experience by virtue, by requiring a team member to count the money, magically it starts to be a lot more accurate since it’s being tracked. It’s top of mind.

Let’s go into the settings. Setup, setup screen, and then go into system access, time clock, and right here, shift assignment. Don’t track shifts, track shifts by cashier, track shifts by station. If you only have one team member accessing the point of sale system at a time, then you would probably use track shifts by station, because whoever logs in, if there’s an open shift, then they can use the till. If you have track shifts by cashier, that’s helpful if you actually have the configuration with two physical cash drawers connected to the same system, and whenever they log in for the first time for the day, it would assign whichever drawer to whichever person had gone on. You could have two people accessing the same point of sale system at the same time, but their tills are tracked separately from each other.

Most places are going to be just a single terminal with a single cash drawer, and I’d recommend just doing track shifts by station, and either have a setup with your team of at certain times of the day that you require a money count for them to close a shift and then open a new one, or just only one person has access to it at a time.

We’re going to hit update, and then we’ll exit out of here, and when we log back into the software you’ll see there is now a new button right here. It says open shift. I can’t ring up sales without opening a shift first. For example, “You must open a shift before you can ring transactions.” Okay. Pretty straightforward to do, which simply hit open shift, and that kicks the cash drawer open and then asks for you the different quantities of the different denominations of money. For example, I’m just going to put in ten ten dollar bills so you can see how ti adds it up when you’re typing that in there, and I’ll hit okay. Again, you can use the touchscreen, or you can use a mouse or keyboard. It’ll ask are you sure you’re done counting? Yes.

Okay, the shift is now open. I can now receive sales. Let’s go ahead and ring up one that’s real simple to keep track of. Let’s say we’ve got four plastic hangers for one dollar, and we’re going to pay, and that customer is going to pay with cash. We’ll skip printing a receipt for now mainly because I just want to see what it looks like whenever I close my shift. Again, it kicks open the drawer when you hit close shift, and it will ask you for the amount of the different types of money. We know we had ten tens, and we’ve got one dollar bill, and we can then have it print of the receipt. It says the shift is now closed, and we would have to open the shift again before we can then ring up further sales.

What that does is it generates what’s known as a shift report, which will tell you your sales totals, your media totals for sales, such as cash, checks, or credit or debit cards, and how much of each of those. Even your number of transactions and your average transaction amount. It’ll also tell you the results of your cash count. If you’re even, if you’re long, if you’re short. That’s one method where you can help prevent employee theft just by virtue of knowing when the money is supposed to be counted and if there is a discrepancy that occurs between the physical count versus what the register expects, if you do a money count a few times throughout the day or once per shift, then that will help you narrow in on when that mistake or intentional theft occurred. That’s one level.

All right. Another level is tracking line item deletions and line item discounts, and as well as entire invoice voids. Let’s go ahead and open a shift right now and let’s say we’ve got ten tens, and say yeah, we’re done counting. Now let me ring up a sale. Just something simple. Let’s go with again, four plastic hangers because that’s easy to keep track of, and we pay cash for that, and now we’re not going to print a receipt. Then say for some reason they need to recall that invoice and then void it. That’s easy to do, you just go to options, recall invoice, and you can recall a transaction and void it out, and what that does is it removes that amount of money from the running total sales for the day. It hasn’t deleted the transaction though. It simply recorded it as a voided transaction. Now it’ll show up on your end of day report, and you can also generate a report of strictly just voided transactions.

How do you do that? Let’s take a look. We go to the manager tab, we type in our administrative password here, and we’re going to go to reporting, or actually, let’s go ahead and print an end of day report so you can see that it’ll show the voided transactions. I have this set up to print a PDF file right now so you can see it on the screen rather than me taking a photograph of a piece of paper. Although I’d be happy to do that for you if you wanted me to, but let’s go on and take a look at it here.

Okay, we’ll zoom out a little bit. You can see on the left where it has total voided sales one dollar. One dollar in sales. Not much going on at this store today, but on the left is the money that came in and went out, and on the right is your sales. Does that make sense? For accounting purposes, whenever you’re looking at the, okay, expected cash in the till beyond what, you know, was the started off with. This is the amount of money you would actually pull from the till to go to your deposit. We have one dollar voided, but say I actually wanted to look at a report of just the voided transactions and get all of the details the customer, the employee who did that, the ticket number and all that. Well, we would simply go to sales and we’re looking for the receipt listing right here. You specify the date range for that, and it says, it gives you a report of each receipt with the date, cashier, and server, and a list of each item on the invoice. We’ll hit display and see here where it allows you to see completed. This would show you a list of every transaction in a given time period.

That’s very handy if you really need to kind of go through sales with a fine-tooth comb to find where some mistake was made, or we could look at the voided transactions. We know we’re going to see one transaction in that space of time because we just voided the one, and sure enough there’s the cashier, server name. The last four digits is that cashier number, and if there was a customer assigned to this transaction there phone number would be right there or whatever you setup as their member ID number. The invoice number and even the method that it was paid for, and then the items. That really helps you double-check on that.

I mentioned another way of tracking mistakes that could be made, or rather not mistakes, but rather a potential source for theft. This point of sales system allows for transactions to be paid for at drop-off as well as be paid for as pick-up, but what if for example somebody is going to be paying for their transaction at puck-up? It’s important to still be able to edit open tickets because you may need to add extra items, or change weights because the clothes were wet when they came in for example, or something like that, but you need to be able to generate a report on when changes to those open tickets are made, because what if the amount is rung up for one total and the customer pays for that with cash and then the cashier then rings it up for another total and then pockets the difference. I actually spoke with someone just recently who’s using a different bit of software for the dry cleaning industry that this was, they were able to do this, and it’s kind of an ingenious way of stealing, but it would be nice if we could have a report of when items were deleted off of a ticket where discounts were given.

How do we do that? Let’s create a ticket. I guess I need to add a customer here. There we go, say Mr. Abe Lincoln is dropping off his laundry, and he’s dropping off a, say it’s a down comforter, and the customer pays 30 bucks cash, but then the employee rings it up as a regular customer which would be a little bit less and then they pocket the difference. We’re going to say pick-up time at 10:00 AM on Saturday, and the customer is going to pay for it at pick-up. We’ll go to hold and print and that prints off a receipt that you give to the customer and you’ve also got one that stays into the store showing that it’s an unpaid order. Say that it’s a week later, the customer is there to pick up their order and they say “Okay, Mr. Lincoln it’s 30 dollars.” Mr. Lincoln hands over 30 dollars cash, the attendant hands over the comforter and away they go, but before that they then go in and say well, let’s ring it up as a king size comforter. That’s seven dollars difference. Let’s delete that first item, and now we’ll hit pay, and we’ll hit cash. Now we’ll print off a receipt even thought the customer isn’t there, and so from reporting-wise that would look like everything is on the level, but we know that the employee just pocketed seven dollars difference on that.

What we have is a way to generate an exception, an invoice exception report. Going into setup there’s an area, I believe it’s on invoice settings, log exceptions for line item deletion and line item discounts. We already have that setup, and so what I can do is I can go to reporting, and If I suspect something like this is going on or maybe just check it on a weekly basis, we can go and look up the invoice exceptions for a given date range. We’re going to go ahead and display that. Sure enough, you can see right here on invoice number three, this cashier deleted a 30 dollar item. Now I can look up the invoice and I can see the date and time of that in the sales, in the receipt listing report, or I can generate a copy of that invoice by going to option, recall invoice, invoice number three. I could type it in here or I could just recall it like this, and now I can view details of that.

Okay, so I know there was a down comforter on there and then they rung up 23 dollar king comforter. Okay, so now I can double-check that with my security cameras, because I have, if I were to hit print I can print off a report, a receipt that will show me the time that this occurred on the receipt and now I can match that up with my security cameras and see okay, did they ring this up while a customer was in front of them, or did they do it after they left? With a combination of the money counts, the void reports, end of day reports, and then these invoice exception reports you have lots of ways of generating reports and just a digital paper trail to better help identify when something has gone amiss.

One other feature that I failed to previously mention is also the ability to create cash alerts whenever the till reaches a certain amount of cash that needs to be pulled by a manager or dropped into a safe. That’s pretty easy to set up. You go to the setup screen, the quick invoicing and alerts tab, and then simply set it for use cash alerts. You can see where you can set a cash alert level and even a cash lock up level where if a certain amount of money goes into the till then you can’t receive any further transactions until a cash pickup is done where that’s then dropped on into a safe or something like that to lower the amount of cash that’s in the till for safety and security.

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