Proper cash handling procedures is a must if you own a retail store. Although payments by credit card or gift cards are growing in the retail world, hard currency continued to be circulated at an increasing rate, especially when it comes to smaller purchases. With so much cash coming through your retail store on a daily basis, it’s natural that you’d want to tighten your cash handling procedures to prevent avoidable losses from occurring.
If you’re dealing with any of the five cash handling problems described below, your retail store could benefit from a cash management solution.
Lack of Accountability
When your nightly counts aren’t matching up to your POS system’s totals, something went wrong. The easiest way to fix the problem and balance your books—and prevent the issue from occurring again in the future—is to know where the problem occurred and who was on shift at that time. But when you have a lack of accountability, it can be virtually impossible to figure out who caused the error, which means you can’t rectify the situation as easily. It also means it’s much easier for your employees to steal from you without being caught. But when you implement an automated cash management solution, every employee has his or her own float and all money is tracked both going out and coming in.
No Custody of Cash
Accountability isn’t only important at the cash register. When you have no custody of cash, that is, when everyone has access to your cash, either in your vault, in the back room, or during deposits, it can be hard to track discrepancies and losses. You should only be allowing restricted personnel to count floats, access and sign for the contents in your safe, or deposit your profit to the bank. Any movement of your cash should be strictly controlled so you can identify errors, theft, or suspicious behaviour as soon as possible.
Lack of Security
When your money isn’t secure, you’re letting your retail store be an easy target for losses. Instead, consider using a currency recycler that keeps your money safe, with silent alarms and secure access codes, while accepting and dispensing cash when needed.
No Documented Procedures
Your employees should feel comfortable processing any transaction. They need to have a clear understanding of exactly what to do when it comes to any cash-related task. If they don’t, they can easily make errors that could have been avoided. Appropriate documentation in the form of a cash-handling guide and proper training can ensure that all of your employees know what is expected of them and it provides them a source of reference. Standard procedures help you reduce the amount of discrepancies and errors that occur in your retail store.
When your employees are counting and sorting your money at the end of every shift, counting errors can occur. Employees can be rushed and not take the time needed to ensure the counts are right, numbers can be transposed on paper, denominations can get mixed up—mistakes can happen in a variety of ways during the counting and sorting process. 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 and reject counterfeit. When you take humans out of the equation, you get increased accuracy, reduction in labour and a solid return-on-investment.