The way you handle your cash might be draining your bottom line. You might not realize it, but ineffective and lax money handling procedures can drive up your costs and increase your risks and shrink rate. Fortunately, you can be proactive and take action in order to improve your processes and reduce the consequences of bad cash management.
The first step to driving ROI from your cash handling processes is to understand the true cost of cash. Accepting cash as payment is expensive and gets more costly if your cash handling is inefficient and ineffective. Transactional errors, administrative errors, employee theft, counterfeit fraud, labour—it all adds up. These costs of handling cash can have a significant impact on your bottom line.
The more you improve your cash handling, however, the lower these costs become, driving up your ROI. Here are some things you can do to better your cash management processes.
1. Money Handling Training
Training new cashiers might be time consuming, but it’s worth it. You have to set your employees up for success, and this starts with effective training. Money handling training can give your employees the confidence, the practice, and the knowledge needed to properly handle your money.
Training can significantly reduce instances of errors while processing transactions, while counting, while sorting, and while reconciling cash. Employees should fully understand how to perform all types of transactions, including discounts and returns, and should have a firm understanding of your cash management processes.
2. Policies and Procedures
When you implement cash handling policies and procedures, you can set the stage for proper cash management. Having sound procedures in place can improve accountability, increase security, and streamline your processes for increased effectiveness and efficiency. Procedures can include recording and documenting transactions, authorizing certain transactions like vault deposits, being timely, tracking funds in transit, limiting availability and access of cash, adopting till maximums and minimums, separating cash handling duties, and performing surprise audits, to start.
When your employees understand that your money is tracked and accounted for at all times, they won’t risk the chance of getting caught stealing, which will reduce your rate of employee theft. In addition, having procedures in place can allow you to more easily identify and rectify administrative errors by knowing when and where they occur, and who was responsible at the time. Cash handling procedures can significantly reduce your shrink rate.
Manual cash handling is problematic, and it’s not necessary in today’s digital world. The easiest way to improve cash management process and drive ROI is to invest in automation. Cash management solutions, such as cash counters and sorters, counterfeit detectors, cheque scanners, and currency recyclers can create greater efficiency and cohesion thanks to top-of-the-line technology.
These machines can do the work that was previously done by employees, which can reduce your man hours, your risk of employee theft, your risk of counterfeit, and your risk of errors. The machines are 99.9% accurate and work at lightning speed. Your processes will be faster and more effective than ever before. They’ll lower your shrink rate and your labour costs while decreasing the common risks associated with handling cash, which will boost your profitability.
Gain a Competitive Edge and Grow Your Business
Don’t let your cash management processes get you down. By using these three strategies, you can streamline your cash handling in order to gain a competitive edge. Morale and employee retention, customer service, and your bottom line can all be improved through proper cash management, which is great for business. Most importantly, though, when you improve your cash management, you save money, and when you save money, you can invest in other parts of your business in order to grow.