For every financial investment you make, you want to see a good return on investment. It’s part of your job as CFO to find great financial opportunities that drive ROI. It’s up to you to find solutions that will allow you to reduce costs, save money, optimize cash flow, and improve your bottom line.
If you want to drive ROI, then you should look into investing in cash management solutions. You’ll benefit from the advantages described below.
Reduce Your Cost of Cash Management
While searching for ways to improve your company’s bottom line, you might not even consider looking into your cash management processes. After all, handling cash couldn’t be that expensive right? Especially compared to the fees you must pay for debit and credit. You might be surprised to hear that cash is actually the most costly payment method.
There are direct expenses, like having to buy the bill straps, coin wrappers, and vault, that you’re probably aware of. But there are so many more hidden costs that you might not have even considered. For one, your labour costs can sky rocket from poor cash handling procedures—when your employees are manually handling your cash, you’re going to be adding a lot of time to their shifts. And then there are the losses associated with human error, employee theft, fraud, and robbery that you need to account for. Think you can’t do anything about these losses and that they’re just a part of doing business? You’re wrong.
When you automate your cash management, you can significantly reduce your cost of cash management. Having machines do the work can lower your labour costs, which will have a positive impact on your bottom line. And since machines are far more accurate than your employees, you’ll also reduce your risk of losses due to human error. And the machines will also track and report all of your cash automatically, which will increase accountability and reduce your shrink rate.
Optimize Your Cash Flow
Cash flow. So incredibly important in business, but so difficult to optimize. Instead of racking your brain to try to figure out new and innovative ways to get access to more funds when you need them, you can automate your cash management instead.
Cheque scanning technology, for example, can allow you to deposit your cheques remotely. You can deposit them from your office, immediately after you receive them, so you can get access to your funds sooner—no more waiting days or weeks to find time to get to the bank. And since these digital cheques don’t need to be transported to different verification locations, your funds won’t be on hold for as long.
Cash recycling technology, too, can help optimize cash flow. When you recycle the same cash that comes in from transactions for future customers, you won’t need so much money sitting in your vault—you can use this money elsewhere, where it’s really needed.
Increase Employee Retention
Employee turnover can lead to reduced productivity, more errors, and less efficiency. It can also lead to higher costs of recruiting, hiring, and training. For these reasons, you should be focused on increasing employee retention.
Automating your cash management can actually increase your retention rate so you can avoid the consequences of turnover. It can enhance security so your employees feel safe in your workplace. It can speed up transactions so they can deal with more pleasant customers who aren’t angry at your long lines. It can reduce errors, which can reduce the risk of them having to pay for shortages. And it can shorten shifts—employees can come in later and leave earlier when they don’t have to manually count and sort cash every day—so their work-life balance will improve, leading to better job satisfaction.