Losses from theft and fraud quietly eat margins. Simple controls prevent most of it.
In this article
Why it matters
Service companies run on trust: technicians carry inventory, collect payments and work alone. Most people are honest, but a few can cost you thousands. Good controls make theft hard and protect honest employees from suspicion.
Inventory controls
Truck stock counts and parts tied to jobs.
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Side jobs
Clear policy on side work and company materials.
Cash handling
Receipts for every payment and daily reconciliation.
Fuel cards
Limits, reports and matching to routes.
Timesheets
GPS and job times compared with hours claimed.
Separation of duties
The person who collects isn't the person who records.
Audits
Random checks show controls are real.
Culture
Pay fairly, recognize good work and talk openly about integrity.
Know your numbers
Track inventory shrinkage, fuel per mile and cash differences.
A conversation that sets expectations
"Our policies protect everyone. Every part goes on a job, every payment gets a receipt and we do random checks. If something doesn't match, we talk first."
Where to start
Run a truck stock count this month and compare it with parts used on jobs.
Common mistakes
No controls, accusations without evidence and ignoring small losses.
When something doesn't match
Investigate privately, gather facts and give the employee a chance to explain before deciding. Follow the written policy every time, so decisions are fair and consistent.
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
What are common forms of employee fraud in service companies?
Using company parts for side jobs, padded timesheets, fuel card misuse, unrecorded cash payments and invoice manipulation.