The majority of movie theatre business is cash-based. This cash must be managed properly in order for your theatre to thrive. Cash management affects your bottom line—don’t suffer avoidable shortages and lose out on hard-earned money with poor management.
With so much money coming in on a daily basis, movie theatre owners need to streamline their cash management process in order to prevent losses through cash discrepancies due to error or fraud.
Cash management starts at the front line—the box office—and continues to the concession stands and all the way to the back to the cash office.
1. Trust the professionals.
Cash management experts can help you identify the weaknesses in your cash system and recommend new streamlined procedures from the point of transaction all the way to the bank. Through loss prevention programs, you can improve employee behaviour by training them to be aware, accountable, and professional. By investing in cash solutions, you will also avoid the risk of human error in cash handling and make your operational processes quicker and easier, saving you time and money.
2. Manage your cash in a timely manner.
Most likely, your movie theatre is open early in the morning for matinee shows and doesn’t close until late at night when the last movie has finished playing and the last of the customers have walked out of the doors. During these long operational hours, employees change shifts, exchange floats, obtain change for the cash registers, deposit cash at the bank, and open and close registers continuously. Thousands of customers are likely walking through your doors, buying tickets, drinks, and snacks. It’s understandably difficult to keep track of all that money.
The first step to building your cash management process is keeping track of your cash at every stage. That means the cash is counted at the start of an employee’s shift, cash registers are reconciled at the end of that person’s shift, and money is deposited at the bank at appropriate and suitable times.
When cash counts are missed or your cash is being deposited at unreasonable times, you risk errors occurring in your process and money going missing.
Cash management solutions can limit or even eliminate your employees touching cash.
3. Ensure your employees are accountable for their shift’s cash.
Never let cash roll over from one shift to another. Each employee should be responsible for the cash that is in their register while they are on the floor. Do not blur the lines of responsibility. If no one is held accountable for the money, then it makes it difficult for your managers to identify when a mistake occurred and who is responsible for the discrepancy.
4. Train your employees on proper cash handling techniques.
Movie theatres are typically being managed by teenage employees. The turnover rate is high. It might be difficult to train each employee. However, training them is one of the best ways to reduce your financial risk. Every employee should understand how to process cash, coupons, returns, and discounts before they are left to work on their own.
5. Automate your system.
There are dozens of cash management solutions on the market that can help you reduce the risk of errors. Automating your registers, buying currency counters, cash and coin recyclers, and investing in counterfeit bill detectors will streamline your cash management process, keep employees honest, and reduce the amount of human errors that occur during the cash handling procedures.
By building a cash management process that works for your movie theatre, you will reduce your exposure to financial risk and, in turn, increase profitability.