Cash management isn’t just a matter of accepting cash transactions in a store. There is a lot of work that goes on before and after transactions occur to keep cash flowing properly. Handling cash well means that it is accounted for at any given time as it makes its way through the cash management process. It can be a balancing act to make sure that you are making the most of accepting cash at your business.
Processing cash accurately and efficiently will allow your business to have the best chance of success. The cash handling process can be fraught with errors that can end up costing your business a lot of money. It is in your best interest to avoid making cash management mistakes; here are seven common cash management mistakes to avoid!
1. Inaccurate Cash Handling
Unfortunately, sloppy cash handling occurs extremely often in retail. It’s easy for proper procedures to fall through the cracks when the store is busy and customers are in a rush.
Your staff rely on you to know how to do their jobs properly. Training is a requirement for all staff who are handling cash. It is important to have clear, concise, and up-to-date cash management procedures laid out. Your staff will then be able to confidently and accurately handle cash once they are familiar with the expectations of their employers. Having well-established policies and procedures protects your business from making common cash management mistakes.
It is in the best interests of your business to invest time and resources into ensuring that manual cash handling is completed with care. Providing training opportunities for staff can keep your business from falling prey to sloppy cash management. During training, you can identify staff members who are handling cash poorly, and correct the errors before they start to affect your bottom line.
2. Sharing Cash Registers Between Staff
Sharing cash registers among staff members can be tempting, particularly when the store is busy. While it may seem easier for staff to switch cash registers throughout their shifts, it can become a problem when errors occur in the cash management process. Swapping registers means that it is more difficult to hold staff accountable for following proper policies and procedures as any mistakes cannot be traced back to them.
3. Manually Checking for Counterfeit
Improvements in technology not only increases the security of our money but it also improves the quality of counterfeit currency. Counterfeit currency can have many of the same security precautions as real bills; this makes it incredibly difficult to detect by hand. Counterfeit detection technology will accurately identify and reject counterfeit currency, protecting your business from fraud!
4. Manually Counting Cash
Manually counting cash is not the most efficient way of processing cash. Errors are bound to happen, making it difficult to determine how long it will take you to count and process all of your cash. Investing in technology like currency counters is a great way to be sure that your cash counting will be on time, each time you complete your cash management tasks.
5. Inefficiency in the Cash Management Process
Being able to identify the cash handling mistakes that your business is making is a crucial first step in overcoming errors. When your business’ cash management process is sluggish and unorganized, it can end up costing your business more money. It makes sense to evaluate your cash management needs and challenges on a regular basis so that you can get the best products and services to streamline the process and improve efficiency and productivity.