Cash management refers to the collecting, handling, storing, and disbursing of money. Proper cash management is vital to your organization’s success. Poorly managed cash can lead to an increased risk of robbery, internal theft, human error, tight cash flow, and even insolvency. It can also lead to higher labour costs, operational costs, and wasted time.
Even if you are selling the greatest products and services on the market, have the best employees on staff, and enjoy an amazing reputation in the industry, your business could still go under if you have bad cash management processes.
The better you manage your money, the more efficiently you can run your business. And advancements in technology have led to the creation of cash management solutions that you should be taking advantage of in order to optimize the way you manage your company’s money.
Here are three cash management trends you can’t afford to ignore—for the good of your business.
1. Cheque Scanning
Cheque scanning has hit the Canadian market and it is expected that by then end of 2016 the majority of cheques will be deposited by this method. Banks are starting to integrate cheque scanning technology into their systems and companies are getting on board and buying their own scanners. This is a trend that will lead the way in the future—it’s just a matter of time.
If your organization accepts cheque payments, you should consider investing in a cheque scanner. This machine will take a digital photo of your cheques, store the data, and allow you to remotely deposit your funds.
It’ll eliminate the need to go to the bank and wait in line to deposit cheque payments. You’ll be able to deposit them whenever you need to, no matter where you are. A cheque scanner can increase productivity by reducing the administrative work associated with manually processing cheques. It will also increase your cash flow, as you’ll be able to have access to your funds sooner.
Its accuracy and reliability will reduce your risk of errors during processing, and you’ll be able to save on storage costs since you won’t need endless filing cabinets to store paper cheques anymore. Plus, digital signatures and public key cryptography make the process totally safe and secure.
2. Cash Recycling
Cash recycling is a revolutionary new way for companies to handle cash. Though it’s mainly used by financial institutions and large retailers right now, it can be used by any type of business that is looking to streamline its cash handling process, increase security and accuracy, and reduce labour costs and operational expenses.
A cash recycler accepts and dispenses cash as needed, is secure and has permission based access. This means you can reduce the amount of bills and coins required for floats enabling you to optimize your cash flow.
The automated process also takes less time than manual cash transactions, so your cashiers can be more efficient. It also authenticates denominations, acts as a vault, reduces vault transactions, detects counterfeit, accounts for all cash on hand, and reports it back to you. This automated process is safe, reliable, quick, and always accurate.
3. Cash Sorting
When you handle a lot of cash every day, you know how much of a time waster it is to sort and count it all at the end of the day. With a cash sorter, you don’t have to. Just drop in bills or coins and the machine will detect denominations, separate your cash into neat piles or stacks, and count it—leaving you with an accurate total.
A cash sorter can save you a lot of money on labour costs, increase the accuracy of your cash counting, sorting, and reporting processes, and reduce your risk of costly losses.
To optimize the way you handle cash, you should get on board with these three cash management trends. You can’t afford to ignore them.