How a Successful Cannabis Company Manages Cash

    Dec 22 2020

    Topics: Retail - Cannabis

    Even though owning a cannabis company is a legal and legitimate business venture in your state, the cash management process will make it feel like an illicit business. After all, with banks wary to work with you, you may still be dealing with bags of cash and armed guards.

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    Fortunately, there’s a better way to manage physical cash in a dispensary. Successful cannabis companies lean on formal cash management procedures and technology to increase efficiency, reduce risks, keep their cash and employees safe, and improve their bottom line. 

    Here are some cash management tips from successful cannabis companies.

    Document Cash Handling Policies

    Successful dispensaries document their cash handling policies and train their employees to follow their standard operating procedures for cash management before they even open. 

    These procedures should document everything from where cash will be kept, by whom, and where cash will be counted, how the cash should be transported, what type of safe should be used and where it should be located. 

    The policy should also document the day-to-day cash handling procedures that employees should follow, including how and when to reconcile cash with your point-of-sale system and how to open and close drawers. It should also state how much cash should be on hand at all times, how to do a cash drop, and how to handle discrepancies.

    The policy should also make it clear that employees’ actions are being monitored and what will happen if the procedures aren’t followed. 

    Create a Culture of Accountability 

    Creating standard operating procedures for cash handling is your first step to enhanced employee accountability. However, it shouldn’t stop there. Successful dispensaries create a culture of accountability, which will be noted in their hiring process to the day-to-day operations they implement.

    For example, they’ll make sure to conduct background checks on new employees. 

    Many also use blind drawer reconciliation to increase accountability, which means that when your employees close the register they are prompted to count all their cash and report the total without knowing how much should be there. Others have the general manager count all the cash in the tills in front of the cashiers, in a recorded room, to enhance till ownership for each register and accountability. 

    You will also create a culture of accountability by tracking employee activity. Many dispensaries invest in POS systems and cash management technology like coin and banknote recyclers and smart safes that require individual PIN logins and contain comprehensive tracking features that enable them to track all cash transactions.

    Set up Counterfeit Detection Procedures

    With cannabis companies being so cash heavy, it makes sense to put a greater emphasis on counterfeit detection since the risks increase with higher volumes of cash coming into the store every day.

    Successful dispensaries not only train their employees to spot counterfeit banknotes but also rely on counterfeit detection technology to validate bills. From countertop counterfeit detectors to smart safes with built-in counterfeit detection, there are many options available. 

    Store and Transport Cash Securely

    Your cash is at risk during storage and transport, so it pays to invest in a heavy-duty smart safe with advanced security features. A smart safe will not only keep your cash physically safe but it may enhance the visibility of your cash by tracking and recording all transactions. Looking into a cannabis-friendly cash-in-transit (CIT) provider will also be worth the cost since it will significantly reduce your risks during transport. 

    Protect your cash, your dispensary, and your employees with secure and effective cash handling procedures and cash management technology.

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    Andrea Lombardi

    Andrea Lombardi

    Andrea joined the CashTech team upon its inception in 2003. Learning the business from the ground up, she now utilizes her expertise in account management, planning, and negotiation while managing the daily operations of CashTech’s sales, marketing, and logistics departments. Andrea holds a bachelor’s degree from the University of Western Ontario. She enjoys travelling and has a passion for personal fitness, including obtaining her kettlebell certification. Andrea lives in Toronto with her husband and two young sons.

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