Cash management is one of the most important aspects of business. How your business handles its money from accepting it from a customer to putting it into your bank account greatly your success.
If your business has poor cash management procedures, it’s likely negatively impacting your bottom line.
Manual vs. Automated
A business lives or dies by the amount of money it’s able to put into its bank account. Part of this comes in the form of cash management practices and procedures. A business that only has manual practices is one that’s behind the competition and not running as efficiently as it should be.
If your business manually counts its cash, you’re not using your labour as effectively as you could be, and you’re also more likely to face human error. With a manual count, two employees usually have to stop what they’re doing, go into your count room, and count money for about an hour. That’s an hour of time you’re paying employees to do nothing but count when instead they could be out on the floor interacting with customers.
On top of that, more errors occur because humans are more likely to make a mistake than a machine. With manual cash management, you’re losing money by underutilizing your employees and through human error.
This is why many companies have switched to an automated cash management system. With an automated system, cash can be counted in moments with a currency counter or sorter. The count will also be much more accurate than it would be if your employees were counting. A currency counter saves your employees time, and you money, which helps your business thrive.
Too Many Hands
Another poor cash handling procedure is when there are too many hands handling the cash. The more people there are counting, sorting, and handling cash, the more likely you are to have errors.
To cut down on the number of people handling cash in the back room and to have better awareness of who is handling cash, it’s a good idea to invest in a cash management solution. A solution such as a coin and bank note recycler requires everyone with access to it to have his or her own login and password. This provides accountability and an audit trail.
The cash management solution also automatically counts when money is added or removed from it so you always know what’s in your recycler. The system also sends you real-time reports and alerts you when it’s been opened or funds are low. Having a coin and note recycler gives you extra security so you can be sure all of your money is making its way into your bank account.
Part of poor cash handling procedures comes down to employees not understanding or not knowing what’s required of them. If your employees don’t know how to get a deposit ready or how to perform transactions, your business is suffering.
Informing your employees of new cash management procedures, why they’re necessary, and also what’s expected of them helps ensure the correct process is followed. When these procedures are followed, you can rest comfortably knowing everyone is doing what they’re supposed to. A cash management solution such as a coin and bank note recycler can assist in creating consistency, accuracy, and time savings for your employees and your business around these critical daily activities.
Poor cash handling may be hurting your business. It leads to costly labour and employee error. Help your business thrive by investing in an automated management system to ensure your workforce is being used effectively and all your money is going into your bank account.