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Exception-based reporting (EBR) is analyzing data with various software packages to find unusual and potentially problematic values.

What is EBR?

EBR (exception-based reporting), also referred to as exception reporting, is analyzing data to find the anomalies. EBR is generally performed using software to automate the process. The goal is to find unusual values or patterns in the data, as these represent the places that may require special attention or actions.

EBR is used in many areas of business, from accounting and finance to marketing, sales, customer service, and more. It is a way of finding anomalous data by benchmarking results against averages.

Why is EBR important?

EBR is a quick way to draw management attention to issues before they get out of control. Exception reporting is used in many industries to alert management to potential problems such as expenses getting out of control, reduced sales, and slow service. EBR can be used to track both unusual values and potentially troubling trends.

EBR can be used to discover theft, fraud, and other employee dishonesty. Here’s a real-life example of EBR being used to uncover credit card fraud at a quick service restaurant (QSR) drive thru:

A Solink customer was concerned about the speed of service at one of their QSR franchises. They noticed that one restaurant had a slower drive-thru than their other locations and couldn’t figure out why.

Solink discovered that the slow downs almost always coincided with a single employee working the POS. At first, the investigation was looking for employees who required retraining.

However, by matching video footage with POS transactions, what was found was far worse. The employee was using a credit card reader to record the credit card information of patrons. Their fraudulent activity is why the service was slow.