There are plenty of moving pieces when it comes to managing cash in any business. For busy retailers, many of those parts tend to end up on the sidelines. You have bigger things to worry about.
Ineffective cash management could be costing you more than you think, though, and in an industry where margins are notoriously tight, that’s bad news. Keeping a closer eye on your cash management can be easier than you think. These 10 retail cash management tips will get you started on the right foot in 2020.
1. Improve Organization for Retail Cash Management
This first step to better retail cash management is to look at the organization of your cash. How visible is your cash? Do you know where all of it is at any given moment? How quickly can you locate records to tell you about the movement of cash in your business?
Keeping close track of cash improves visibility and protects your business from losses.
2. Stay on Top of Cash Handling Tasks
In retail, it’s easy to let some tasks slide, and cash management is one of them. You’ll fill out those records tomorrow. The daysheets can wait to be balanced.
While letting things slide may seem to save you time in the moment, it’s much better to adhere to policies and procedures. Follow them carefully, and you can avoid the consequences of poor cash handling.
3. Find Opportunities for Improvement
Continuous evaluation if your cash management process will pay off. When you monitor your success, you’ll have a better sense of what’s working and what’s not. With more insight, you can more easily see the opportunities for improvement.
By capitalizing on those opportunities, you can improve your profitability.
4. Update Your Policies and Procedures
Have you recently adopted new cash management technology? Maybe your business has been dealing with some cash security or visibility issues. If that’s the case, it might be time to refresh your policies and procedures.
Better policies and clear procedures spell out how everyone on your team should handle cash. When everyone’s on the same page, it’s easier to spot discrepancies.
5. Monitor How Much Cash You Have on Hand
Keeping too much cash on hand in your business can attract losses. A great precaution to take is a set limit. Limits on the amount of cash within your business lets you improve your security and protect your cash.
6. Implement Employee Accountability
Once you’ve updated your policies and procedures, it’s time to bring your staff up to speed. Properly trained staff are more likely to uphold policies and procedures.
Train your employees on the importance of following proper procedure. When they understand why these policies are in place, they'll be much more likely to follow them.
7. Maintain a Schedule
Schedules are key to effective cash management. They help you keep the business running along without all the hiccups. Bank deposits at certain times mean you’ll always have the right amount of cash on hand. You also know when you’re opening and closing the books, and when you’ll need to reconcile your records.
Finally, a schedule will also let you know who is handling your cash when. This improved visibility makes it all the easier to keep track of your cash and pinpoint where things may be going wrong.
8. Know When to Ask for Help
If you know your cash management needs some TLC, a helping hand could be the solution you’re seeking. Consult with a cash management solutions provider to get the answers you need and improve the way you manage your cash.
9. Have Enough Staff on Site
When retail businesses get busy, mistakes become even more likely. Keeping your sales floor well-staffed means that each staff member won’t be overwhelmed by customer demands. In turn, they can take their time dealing with cash transactions. The result? They won’t feel rushed, and they’ll be less likely to make mistakes.
10. Invest in Cash Management Technology
Perhaps the most important cash management tip for retail businesses is to make sure you’re using the right technology. Automated cash management gives you efficiency, accuracy, and security for your business. With the right technology on your side, you can be confident that you’re get the most out of accepting cash in your business.
