CFOs and heads of finance are always looking to build ROIs, reduce cash on hand, increase cash availability, and gain cost savings in order to optimize cash flow and increase their bottom line. They look at every avenue they can take to make their companies leaner and meaner to stay competitive and profitable.
On your quest to a better bottom line, have you considered improving ROI with an effective cash management solution? If not, here are a few reasons why you should.
The Cost of Handling Cash
If you take a long, close look at the way your company handles its cash, you might realize that there are efficiencies that could be gained. The true cost of handling cash is far higher than most CFOs expect. There are the direct costs, of course, such as the price of your vault, cash room, POS system, and even the coin wrappers and cash straps. But there are many other expenses that you might not be aware of, like the labour costs associated with managing and handling cash—it takes a lot of time to count and double count cash at every shift. There are also the losses from fraud and internal theft, and the losses from miscalculations, misplaced cash, and administrative errors. The more lax your handling procedures are, the more disorganized your cash management, and the more manual your processes are, the more money you’re wasting.
Reduce Your Labour Costs
Your labour costs are likely your company’s largest expense. When you consider all of the time that your employees, both in the front and back, spend on handling cash, you’d be surprised to learn how much you’re spending for these activities. When you integrate a cash management solution, which may include a currency sorter, coin counter, cash recycler, cheque scanner, counterfeit detector, or likely, a combination of many of these devices, you will be able to cut down considerably on the time your employees spend on cash-handling activities. The automated machines will do all of the work, so you can redeploy your cash room employees elsewhere, have fewer people scheduled for each shift, and schedule shorter shifts. Even just cutting 10 minutes off of each employee’s shift by eliminating cash-handling activities can result in large cash savings on labour.
Reduce Turnover through Employee Satisfaction
Your employees do not want to constantly worry about being accused of internal theft. They don’t want to worry about cash going missing or being robbed when they’re on the floor. And they don’t want to worry about having to pay for shortages if they make calculation errors. When you use cash management solutions, your employees can breathe easy, knowing that every dollar is now accounted for, so they have nothing to worry about. Transaction speeds will also increase, which will reduce their stress of long line ups of angry customers, too.
When your employees are happy, they’re less likely to look for other employment opportunities. So you’ll be able to reduce the costs associated with a high turnover rate.
Security should be a top priority in your company. Not only because you want to keep your employees and customers safe, but also because you need to keep your money safe. Cash management solutions can help. Cash recyclers can act as vaults, keeping your money locked up so you reduce your risk of robbery, and the losses that come with it. Counterfeit detectors also keep you safe from fraud, so you don’t have to take on any more avoidable losses. Cash management solutions also reduce the interactions your employees have with your money and increase accountability, reducing your rate of internal theft. All of this means that you’ll be able to keep more of your company’s money in house.