Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

The importance of checks and balances in your cash management processes

Mark Fletcher
July 24th, 2014 · 2 Comments

I was talking with a retailer a couple of days ago about the theft from his business of more than $50,000 by a business partner. He was devastated that the long-term business partner would steal from their 50/50 owned business.

The theft has challenged the future of the business as two long time family friends collapse their business relationship. It is touch and go if the business will survive.

Partners can steal from each other if there is easy opportunity. That was the case in this situation I am writing about.

For the sake of everyone involved, partners should agree on a transparent process for handling cash with different people responsible at different times. This coupled with good checks and balances and a fine attention to actual grow profit by department and with proper stock control processes and you have several points at which theft can be uncovered.

The easier you make it to detect theft in your business the less likely you will be stolen from including by your business partners.

It is wrenching hearing someone talk about theft by an employee or a business partner. The damage beyond the cash itself is far-reaching. It can change someone forever.

10 likes

Category: Ethics · Newsagency management · theft

2 responses so far ↓

  • 1 MAX // Jul 24, 2014 at 12:05 PM

    Has anyone had this happen, when the business partner was their spouse ?

    0 likes

  • 2 Mark Fletcher // Jul 24, 2014 at 8:27 PM

    I know of three instances.

    0 likes

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