The Small Business Guide to Cash Handling Procedures

    Mar 30 2020

    Topics: Cash Handling Solutions

    Many small businesses still accept cash, for a number of reasons. Maybe it’s how your customers prefer to pay. After all, cash is still the most popular method of payment for purchases under $10. Cash is also popular for tips, at casinos, at laundromats, and even in retail stores.

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    Many business owners prefer cash because it doesn’t come with extra processing fees like credit and debit payments. The costs associated with card payments can be quite high.

    The cost of cash may be higher than you anticipate too, though, especially if you’re not using the right cash handling procedures. Use this guide to discover how you could improve cash handling for your business.

    Create Formal Procedures and Review Them

    The first step in proper cash handling is laying out some guidelines for your team. If no one knows how they should be handling cash, most of them will handle cash the way they see fit. This can lead to errors, since not everyone will follow best practice.

    In this case, it’s helpful to create formal procedures and review them on a regular basis. Writing your procedures down will help everyone learn and remember the correct process. The written version will also provide a document that your team members can refer to whenever they need a refresher or have a question.

    Create Checks and Balances

    As your team handles cash, it’s important to have “checks” on the system. You may want to centralize counting in one place or limit the number of people who have access to the safe. You might also want to double-check counts. Making sure there are two people in a room when counting is going on is another check on the process.

    These practices help to create increased accountability in your system. With them, you can improve accuracy and also hold your team members more accountable for their behavior.

    Adopt the Right Technology

    The next step to take is making sure you have the right technology on your side. With a currency counter or a cash recycler, you can count on more accuracy, right alongside more automation.

    This may streamline the cash handling process. The cash recycler, for instance, can keep a running tally of the cash in it as your cashiers continue to process transactions. In turn, your cash will be ready to use again. The machine also keeps track of what comes in and what goes out, providing a total that could save your cashiers from needing to manually count up their tills at the end of a shift.

    A smart safe is another great investment, since it can help you track your cash. You’ll be able to spot patterns and identify busy periods. You’ll also be able to optimize your deposit schedule.

    Train Your Team

    Whether you’re adopting new technology or just updating some of your cash handling policies, it makes sense to thoroughly train your team.

    After all, they can only handle cash the right way when they know what the right way is. Teach cashiers tricks like the countback method for making change, and watch their accuracy improve.

    Training also improves team members’ knowledge of loss prevention measures, as well as how to use the technology correctly. When someone knows how to use a currency recycler the right way, they’ll be able to take full advantage of the benefits it provides. That includes time savings, increased productivity, and lower overhead costs.

    Stay Organized

    Organization is key when it comes to handling cash the right way. Better organization makes it easier to track cash as it flows in and out of your business. With a better view of where your cash is, you can make the right decisions and limit opportunities for loss.

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    Andrea Lombardi

    Andrea Lombardi

    Andrea joined the CashTech team upon its inception in 2003. Learning the business from the ground up, she now utilizes her expertise in account management, planning, and negotiation while managing the daily operations of CashTech’s sales, marketing, and logistics departments. Andrea holds a bachelor’s degree from the University of Western Ontario. She enjoys travelling and has a passion for personal fitness, including obtaining her kettlebell certification. Andrea lives in Toronto with her husband and two young sons.

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