Business Level 3 Unit 13 P1

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good as a backup. It is recommended business’s conduct physical stocktakes once or twice a year and do daily electronic stocktakes.

Have more than one adminstrative officer. Having one administrative officer can lead to them stealing large somes of money as they are one of the only people in the business who can change figures in the electronic records. In 2015 it was found that 15% of all fraud cases occur because of the administrative area of the business.
Stop customer theft by putting security systems in as well as keeping the tagging system. Have an alarm system where an alarm goes off, when a customer enters the store to make the staff alert that someone has entered. Have locks on all entrance ways (including into windows) into the …show more content…

A credit policy sets out the rules for determining who you will provide credit to, how much to provide and how you will monitor that credit once it’s been provided. A credit policy, should state the credit terms (the amount of time you should pay back). Provide penalties for late payments and discounts for early payments. Trade credit with only credit worthy businesses, by looking at other businesses credit-worthiness on creditwatch.com. If you implement these strategies, you should recieve money from debtors sooner as customers won’t want to pay the fees and you will only have realiable …show more content…

As it can be seen from this year’s inventory shrinkage table, there has been a large amount of theft within the business. 75% of this comes from customer theft. The business does tag and register all equipment, however on it’s own it isn’t effective as large portions of items are still being stolen. Secondly the business does not provide accurate and reliable financial information. As it can be seen, 22% of inventory shrinkage cases are from administrative errors and 30% of cash shrinkage also occurred because of administrative errors. Thirdly the business has a large exposure to risk. They have large amounts of assets stolen (75% customer theft), no overdraft facility which makes it harder to pay expenses and unexpected expense. The business also has only one administrative officer which makes the business more prevalent to fraud. The business does have insurance to cover this however, the damage may not suffice the fine print on the policy. Overall, neither of these criteria have been met which means that Rankins does not have effective financial control over their

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