When you’re busy with the day-to-day tasks of running a business, managing how you handle cash may be at the bottom of the to-do list. The cash management process involves several moving parts, each of which is important to your overall success. It’s crucial for retailers to protect their businesses by running a tight cash management ship.
Implementing cash management best practices will improve your bottom line and increase the security of your business. Not sure where to get started? These top 10 best practices and procedures can help you handle cash the right way for your business.
1. Organization Is Key to Effective Cash Handling
From backroom logistics to front-line cashiers, you know organization is crucial. The same principle applies in your cash management. You should always be aware of the location of your cash and be able to track cash as it moves through your business. Better organization gives you the ability to prevent losses from occurring and avoid common cash handling problems, precisely because it makes it easier to keep track of your cash.
2. Keep an Eye on Your Cash
As mentioned, knowing where your cash is at all times is crucial. Making use of automated cash management technology will ease this process. The devices help you process transactions and generate accurate reports. With the right technology, you can always be in the know.
3. Enforce Policies and Procedures
There’s no point in establishing cash handling policies and procedures if you aren’t going to stick to them after the fact. Make sure your employees receive proper training so they are comfortable and confident working within the boundaries of your policies. It helps to check in with your staff on a regular basis. This way, you can refresh their knowledge and correct any misunderstandings before they become problems.
4. Keep Less Cash on Site
Keeping large amounts of cash on site can be a catalyst for disorganization. It also increases opportunities for people to act dishonestly. Set a limit on the amount of cash you need to keep on hand and make regular deposits to the bank. Another easy way to manage cash on hand and set limits is to use a currency recycler.
5. Engage Your Staff
The process of handling cash begins with your front-line staff. As a result, it’s important to engage these employees in training and conversations about proper cash management and loss prevention.
6. Maintain a Schedule
Handling cash works best when there’s a schedule involved. For example, you may balance all of your cash registers at the end of every shift and make deposits every Monday and Thursday. Maintaining a schedule will keep you organized so you don’t get bogged down with overflowing cash rooms.
7. Have Enough Staff
When you have enough staff on the sales floor, cash management can be a team effort! It takes plenty of hands to monitor your security and implement cash management best practices.
8. Ask for Help
Consulting a cash management solution provider is a great way to get answers to any of your burning questions on handling cash. These providers are experts in the field and can provide you with project management support as well as onsite tech support for your automated cash management technology.
9. Invest in Technology
Investing in cash management technology can do so much for your cash management. It will boost your accuracy, security, and efficiency. It also allows you to handle cash with ease and confidence and gives your business long-term savings by reducing labour costs and potential losses.
10. Keep Improving
Once you’ve made positive changes to your cash management process, it’s in your best interests to keep evaluating your procedures. You might find that there is still room for improvement!