Cash is still one of the most popular ways to pay, especially for smaller purchases in retail stores. All this pocket change can really add up, especially if you’re dealing with hundreds or thousands of transactions per day.
For that reason, it only makes sense for retailers to pay close attention to their cash handling. If you’re dealing with any of the five cash handling problems described below, your retail store could benefit from a cash management solution.
1. Lack of Accountability
In most retail businesses, cashiers use the same till. It’s easy and convenient, but it can make it more difficult to determine who’s responsible for any errors that happen to crop up. The same is true in the back office. If you’re counting and sorting cash by hand, it’s harder to keep track of who was handling your cash.
This lack of accountability makes it difficult to spot other issues, such as when cashiers are skimming from their tills or other dishonest behavior. An automated cash management system can help by increasing your cash visibility. When all money is followed as it flows in and out, you’ll have a better chance of tracking down any issues and errors.
2. No Custody of Cash
Who is responsible for handling your cash when it makes its way from the register to the back room? Who is in charge of it when it comes time to make deposits? Custody of cash assigns this responsibility to certain individuals.
If everyone has access to your cash, it’s much more difficult to track discrepancies. Restricting access through custody of cash limits the number of people who touch your cash. In turn, that limits the opportunities people have to act dishonestly.
Assign custody of cash to those people you trust and know are ready for the responsibility. When the chain of command is clearly delineated, your team will be encouraged to be accountable for their actions, and you’ll be able to hold them responsible if things go awry.
3. Lack of Security
When your money isn’t secure, your retail store becomes an easy target for losses. Instead, consider using a currency recycler that safeguards your money. These devices come equipped with secure access codes to keep your cash safer. They also accept and dispense cash as needed, which has other benefits for your business.
4. No Documented Procedures
How should your team handle a refund? What about a coupon or a return? How do they void a transaction?
Knowing the ins and outs of how to handle just about any type of transaction is key to good cash handling. When you have no documented procedures, members of your team may start inventing processes. They might partially remember how to tender that coupon, but they don’t do it the right way. In turn, they throw out the register, leading to losses or a waste of time trying to figure out any discrepancies.
Proper training helps them understand the processes in the first place. Written documentation gives them reference material, so they can always double-check their work and find answers if they’re unsure. Standard procedures also allow you to hold employees accountable when they deviate from accepted practice.
5. Counting Errors
When your employees are counting and sorting your money at the end of every shift, counting errors can occur. Employees might not take the time needed to ensure the counts are right. Numbers can be transposed on paper, and denominations may get mixed up.
To reduce your risk, consider investing in an automated cash management solution that will count all money going out and coming in as well as detect counterfeit. When you take human error out of the equation, you get increased accuracy, reduction in labor, and a solid return-on-investment.