Cash handling is important for every business, but not all business owners give it the attention it requires. In many cases, cash management is an afterthought.
Not having clear cash handling procedures for your team is a common problem. You may know your procedures and policies inside-out, but you’ve never communicated them formally or written them down. You might think they’re “common sense.”
If this sounds like you, it’s time to get everyone on the same page about how best to handle cash in the business. Implementing cash handling procedures for your cashiers doesn’t need to be difficult. This guide will help you prepare everyone to use the most up-to-date processes and proper procedures.
What Are Cash Handling Procedures?
Before diving into the implementation of cash handling procedures, it’s important to understand what those procedures look like. Quite simply, a cash handling procedure is a protocol aimed at creating an internal control for the management of cash and its movement in your business.
Common cash handling procedures include:
- Documentation of transactions
- Authorization of transactions
- Policies limiting the access and availability of cash
- Tracking fund movement through the business
It could also include policies about the timeliness of cash handling or the separation of cash handling and management duties.
For example, what does the authorization of a transaction look like? In order to apply a discount, your cashiers might need to validate the transaction by entering their employee number and a password. For a discount over 15 or 25 percent, they may need a supervisor to confirm the transaction.
These specific policies and procedures can enhance how your business operates and improve accountability and security.
Why Implement Cash Handling Procedures?
Proper cash management is important for any business. It could help you improve the business’s bottom line. It can also reduce many risks, such as the risks associated with accepting counterfeit currency. A simple procedure that has cashiers check for counterfeit banknotes can protect the business.
The same can be true of other cash management procedures as well. When all your transactions are recorded, it becomes easier to review them and see where errors occurred. You can identify patterns and hold your team accountable. Asking for verification for certain transactions can also improve security.
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. Review what your policies and procedures are. If you haven’t documented these procedures, write them down. This can become a reference for your team members. If they have questions, they can check the document to ensure they’re handling cash properly.
Next, you have to get everyone on board. You should be training every new cashier, but you should also ensure your experienced cashiers are aware of proper procedure as well. Have your cashiers review the cash handling procedures and policies on a regular basis. You could ask them to sign off on a document indicating they’ve read, understood, and agree to follow the procedures you’ve outlined.
You should also make it clear that you will hold those who decide to act dishonestly accountable for their actions.
Be sure to offer support for your cashiers. A trial-and-error approach can cause lots of headaches for your team. Cashiers who aren’t given proper training may invent their own procedures, which could clash with yours. Instead, go through each procedure step by step. Explain anything that seems unclear and give the cashier a chance to practice.
Finally, make sure someone is in a position to hold cashiers accountable. A manager or supervisor should be ensuring protocols are followed each and every day.The right procedures go a long way to improving your bottom line and your business security. When every one of your cashiers is on board with those procedures, your cash management can become much smoother.