In an industry where out-performing your competition is key, running an efficient business is a priority. Regardless of how well your products sell, slow operations will place a huge dent in your profitability. To keep your head above water, maximizing efficiency across your business is crucial to your success.
One of the areas that has the potential to drastically help or hinder your profitability is cash management. Poor cash management can accumulate in heavy losses that result from cash handling mistakes, theft, or fraud. Evaluating the effectiveness of your cash management procedures will give you a deeper understanding of the costs of handling cash and how you can improve your business.
You can help your business avoid high costs by following these seven simple cash management tips that will boost your efficiency!
1. Cash Management Training
It should come as no surprise that well-trained employees are an asset to any company. When employees have confidence in their abilities and know company policies, they will be able to represent your business more effectively. If your business struggles with high rates of turnover or a high frequency of cash handling mistakes, taking time to properly train your staff is a quick fix.
It’s important to make sure your staff is always informed of new changes in policies and procedures. Provide employees with opportunities for professional development. If employees are well-trained on cash management, they will be able to uphold your policies and keep your business running smoothly.
2. Simple Policies and Procedures
A policy is only effective if it is understood by your staff, which is why creating simple policies and procedures is one of the top cash management tips we can offer. While it is important to maintain comprehensive policies and procedures to help you run the daily operations of your business, it is equally important to make sure your staff can implement them with ease.
For cash management, the policies should be designed to maximize efficiency, boost security, and focus on the specific cash management needs of your business.
3. Reduce Manual Cash Counting
If you’re trying to increase efficiency, manual cash handling is not the way to go. Counting, sorting, and balancing cash registers is an inconsistent process that takes up valuable time—and money—without benefiting your business.
4. Re-Evaluate Your Best Practices
Even if you think you’ve got a good thing going with your cash management, taking the time to evaluate the effectiveness of your processes will allow you to make any changes that may provide you with savings. Start by calculating how much money you spend on cash management. If you’re shocked by the totals, don’t worry, there is always room for improvement!
5. Stay Organized
A well-organized cash management process is an efficient one. The ROI of taking the time to organize your cash management pays off with a greater rate of efficiency. By becoming organized, you will reduce the rate of errors, increase your security, and develop best practices.
6. Know Your Cash Flow
In a busy retail setting, it can difficult to maintain proper cash flow when cash is constantly on the move. Using automated cash management technology lets you regulate your cash flow and reduces how often you need to make deposits at the bank. Understanding your cash flow will insure that you have the cash on-hand that you need without carrying excess cash thus allowing you to keep your money in the bank and working for you.
7. Invest in Automated Cash Management
Making the investment in automated cash management is one of the best cash management tips to follow. Technology takes on the cash management tasks that would typically be completed by your staff; this allows your staff to focus on growing your business, while also increasing the accuracy, security, and efficiency of your cash management process. You can improve your cash management with an investment in automation!