Are you confident that your cash is being handled properly? That it’s protected? That you’re not losing out due to human error? If not, you need to implement cash handling procedures. It’s your duty as the employer to ensure that your cashiers are all up to date on, and follow, proper procedures when handling your cash.Your cash is your lifeblood, and you should be doing all that you can do to protect it from human error and other risks.
When your cashiers follow cash handling procedures at your company, everyone benefits: you, your customers, and your employees.
What Are Cash Handling Procedures?
One of the most important aspects of cash management is the implementing of proper handling procedures. You can invest in the most high-tech cash management solutions, but without your cashiers on board, your cash handling is still going to be ineffective. These procedures offer you an efficient and effective way to improve your security measures when handling cash. Internal control policies are important for managing cash and its movement.
Some of the procedures that you should adopt and implement include:
- Recording and documenting all transactions
- Authorizing transactions, such as discounts, refunds, and vault deposits
- Being timely in your cash handling
- Tracing the movement of funds
- Limiting access and availability of cash
- Performing surprise audits
- Separating cash handling duties and responsibilities
Why Implement Cash Handling Procedures
Though proper cash management is critical to a company’s bottom line, many employers forgo the implementation of money handling procedures, which is a shame. Without effective internal cash controls, you subject yourself to many risks.
When your procedures are lax or non-existent, your employees might share registers, which makes it harder for you to figure out who might not have a good grasp on cash handling. If you don’t have proper cash transportation procedures, cash could go missing in transit, and you won’t know who to look to for answers. If you don’t have proper transaction processing procedures, you could easily accept counterfeit bills. If you don’t have strict cash controls, human error and wasted time will be rampant, and you’ll take on the losses.
The fact is cash handling is fraught with risks. And you need to protect yourself from these risks. That’s why you must implement cash handling procedures for cashiers.
How to Implement Cash Handling Procedures
Now that you know what cash handling procedures are and why you need them, it’s time to implement them. It’s important to get everyone on board—your old and new cashiers alike. Everyone should be accountable for following your new rules. They should all have to sign a contract stating that they’ll follow your protocols—and the consequences of not following them should be clearly stated.
You also need to spend the time required to train all of your cashiers. Don’t let them try to figure it all out on their own, using a trial-and error approach or coming up with their own rules that suit them better. You should be setting them up for success by going through each procedure, step by step, with clear explanations, at the start of your implementation and every time you hire someone new.
And you should make someone—a manager—accountable for ensuring that your protocols are being followed every day. If you don’t follow up and ensure that they’re being used, your cashiers will take advantage, get lazy, and start being lax with them. And this isn’t good for business. They need to be used at all times, by all cashiers.