Poor money management is the main reason many retailers fail. With cash being the most prevalent of all payment options in retail, it’s vital for owners to understand the importance of cash management. When you accept cash, you are at risk—of inaccuracies, discrepancies, and substantial loss of time and money.
Retailers must manage these risks as effectively as possible so they don’t drown in potential losses they could have been prevented with better cash management. Here are just three reasons why, as a retailer, you should be managing your cash as efficiently as possible.
Anytime an employee is handling cash, you face the possibility of loss. Human error accounts for a lot of missing money, discrepancies, and accounting mistakes. When the cash balance at the end of the shift doesn’t match the POS sales, your money can’t be reconciled. You then face the problem of finding out where the error occurred and how to fix it. And when employees are handling cash at the end of the night, some of it can be misplaced, it can be counted wrong, or the totals can be written down incorrectly. It happens.
But all of these errors will lead to inaccurate accounting that can hurt your business. And if it’s occurring frequently, over time, all of those lost dollars start to add up and can have a significant impact on your bottom line. When it comes to cash management, accuracy is tremendously important.
Retail loss is a huge problem.
When you have poor cash management procedures, you allow losses to continue to occur. When you’re not properly organized, your cash handling procedures aren’t standardized, and your security is weak, your cash is at risk.
Saving Time and Money
It can take your manager several hours a day to manage your cash. From counting floats before and after every employee’s shift to sorting it and balancing and reconciling the totals, the amount of time cash management takes is substantial. And if there are any discrepancies to deal with, double checking and going through all the transactions to find the errors can take even more time, especially when you are poorly organized. And you’re paying for the labour costs associated with all this effort.
At the end of the day, this time and money really starts to add up and can be a drain on your budget when your money management processes aren’t as streamlined and as efficient as possible.
Cash Management Solutions
When you invest in cash management solutions, such as coin and note recyclers that both dispense floats and count back or simple coin and bill counters and sorters and counterfeit detectors you can reduce the burdens associated with handling cash. The technology implemented in these machines will ensure total accuracy and speed.
Your money will be more secure, and the machines are so efficient that you will be spending less money on labour costs because your manager won’t be spending all his time counting and sorting cash every day. Investing in these solutions can streamline your money management procedures so you can increase your profits and run a more efficient business.