Pawnshops with multiple number of branches nationwide, in reality is very hard to control over the malpractices considering the conivances having between the employees. Temptation has been always there because daily transactions involves cash and jewelry. Even though a pawnshop is computerized still things can happen in every branch causing the proprietor/proprietress a bad image to pawners and later on will passed on a chain reaction to majority. One cause also ng “pag hina ng branch.” But in all ways, computerization is one big factor to a pawnshop. Very easy to monitor daily cash position, number of daily transactions, redemptions/renewals, interests income, number of foreclosed items/how much would it be and the discription of items to be forelosed, expenses…All these things can be monitored by the managers, branch managers and the owners even they are not always present in their busineses. But how about the physical inventory of branches? Are they being monitored carefully by the managers/branch managers/auditors? Here goes now the malpractices that are very usual to ALL – no exceptions – pawnshops most specially pawnshops operating in a number of years now, whose employees are working for a number of years , whom you may think has been working honestly in your company, would sometimes without your knowledge and awareness already been doing conivances with each other. A branch manager can conive with the vault keeper regarding foreclosed items , or an appraiser can conive with someone on pawning fake items or even do an inside job conivance. A very common malpractices of pawnshop employees most specially to employees that are underpaid. These causes a BIG LOSS to a pawnshop. You must always remember that, once hired in a pawnshop from a zero knowledge, counting to at least 6 months as trainee, from a bookkeeper to a cashier and become an appraiser, and finally completes the knowledge on the daily routine of work procedure and SOP would end up to a very big word of TEMPTATION. Because all pawnshop employees will automatically learn the pawnshop system and you can not hide to them if a branch is gaining or losing.
But there is always a solution to every problem. All this malpractices can be stopped if a pawnshop will hire a specialist or expert in this field, to conduct a surprise audit on all the physical inventory of branches and then have it done either weekly or monthly. At least employees of each branch will be aware that there are hired professional auditors anytime. Find out which cost you higher, the big losses a month or a year , or the hiring of a professional auditor?