As the head of finance, part of your job is to always be on the lookout for opportunities for cost savings and to find solutions that can provide a great return on investment. The less money that has to be spent on day-to-day activities, the better your cash flow and the more money that can be spent on more critical business tasks, like a business expansion or an increase in inventory. After all, saving money through ROI can help your company thrive into the future.
Cash management solutions should be looked at as an avenue to drive ROI. Here’s why.
Handling Cash Is Costly Business
The direct expenses, the labour costs spent on handling and managing cash, the losses from fraud and employee theft as well as human error—all of these costs can add up significantly. If you really looked at how much your company was spending on cash management processes and activities, you might be inclined to look for ways of gaining efficiencies, driving productivity, and increasing security in order to reduce these rather large expenses. Just use a cost of cash calculator to better understand the money you’re spending on these activities. And the more disorganized and lax your processes are, the more expensive they become.
Automating your cash management with the help of high-tech solutions can allow you to spend less of your company’s hard-earned money on the time-consuming, tedious, and often complex cash handling tasks.
Here are three ways cash management solutions can help.
Lower Labour Costs
The average retailer will spend approximately 15 hours per day on cash handling, while a national retailer can spend 30 to 45 hours a day on this task. Most bank notes in your company will be handled at least five times before they’re deposited. More often than not, two employees are needed to count and report all of your cash throughout the day. You might not realize just how much of your overall labour costs go to handling cash.
Since labour is likely your biggest expense, just a small reduction in this cost could make a significant impact on your bottom line. Integrating cash management solutions, such as cash recyclers, coin and bank note counters and sorters, counterfeit detectors, and cheque scanners, can save you a lot of money. The more machines are doing the work, the less your employees have to. You may be able to reduce the size of your staff, cut time off of shifts, and redeploy employees to more critical positions than the cash room.
Eliminate Human Error
Some of your ROI will come from the elimination of human error. Your employees will make mistakes when counting and handling cash. It’s expected and it’s not surprising. But every small error—every miscalculation or reporting mistake—can add up to big losses over time.
Automating your processes through the implementation of cash management solutions can enable you to virtually eliminate human error. Your employees will not be handling your cash as much because the machines will be doing the work. And as they use state-of-the-art technology, you can breathe easy knowing that they’re 99.9% accurate. All of your counts and all of your reports will be totally accurate and error free.
You need to keep your money safe. Its security should be top priority. As threats can come in many forms, it’s critical that you have the right systems in place to reduce your risks. Counterfeit detectors can eliminate the risk of counterfeit fraud—you’ll be alerted right away to any suspicious bill. Cash recyclers can act as vaults, so potential robbers won’t have access. And since your processes will be fully automated, every single nickel at your business will be accounted for, which will reduce your risk of employee theft. Enhanced security can drive ROI.