Even in the best of times, businesses should seek ways to become more efficient. In the midst of a pandemic, however, the goal of greater efficiency should be a top priority. When circumstances change quickly and revenue may be temporarily or significantly reduced, greater efficiency can enable your company to do more with less, reduce labor, and save on costs.
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 result in greater 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 in 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 all employees, 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 with internal controls, 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 and cashier floats is an inconsistent process that takes up valuable time—and money—without benefiting your business. The more people who have contact with your cash, the more likely it is that errors will occur, time will be lost, and the cost of cash will rise.
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. Upgrading your cash management technology and improving your procedures can go a long way to greater efficiency.
5. Know Your Cash Flow
In a busy retail setting, it can be 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 ensure 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. Cash management software can give you insights into your cash analytics and enable you to forecast your cash needs and replenishments.
6. Invest in Automated Cash Management
Making the investment in automated cash management is one of the best cash management tips to follow. Technology can take on the cash management tasks that would typically be completed by your staff, including counting, sorting, validating bills, and reconciling floats and cash drawers. 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!
7. Choose a Complete Cash Management Package
An investment in cash management can seem overwhelming if you’ve always managed cash manually. Not only will you need to choose hardware, such as smart safes or coin and banknote recyclers, but you’ll need to implement software, train your staff, and set up and maintain the equipment.
Fortunately, you can invest in an all-in-one complete cash management package that offers everything you need to get started with cash automation quickly and efficiently, all in a convenient monthly package.
