Apr 5, 2015
Retail businesses in particular can saves thousands of dollars
by employing a full-time or part-time profit protection
officer. Businesses need to be able to rely on the integrity
of their targeted gross profit percentage and then measure
variables from that targeted percentage if they’re going to
effectively manage their businesses.
The key role is to monitor what has been charged to:
• mark downs;
• cost of specials;
• stock discounted for team members and management; and
• cash-out refunds.
While measuring the authorised shrinkage and deducting it from the targeted gross profit percentage, management can then clearly identify what the unauthorised shrinkage is. In other words, theft.
Management can then implement strategies to reduce theft by customers and staff to better manage their business. This is part of a business advisory service accountants in 2015 could assist their clients with.