Do you know how much money your business spends on handling cash? While it may appear that your costs of handling cash are low, once you investigate you may be surprised! Throughout the cash management process each step has a cost attached to it; the total cost can put a dent in the profitability of your business.
As a retailer, it is in your best interests to increase the efficiency, accuracy, and security of your cash management process. Adding technology into your business will help you streamline your daily cash handling operations. The first step is to understand where your business is spending the most amount of money handling cash so that you can implement strategies to reduce your costs. Read on to learn more about how you can find savings for your business’ cash management.
Where Do Your Costs Start?
In order to make the most of handling cash, it’s important to start by seeing the whole picture. This may seem like a daunting task but there are tools available for help! Using a cost of cash calculator breaks down the costs of handling cash by task so that you can determine the cost associated with each step of the cash management process.
From the transaction process to making deposits in the bank, there are a number of hidden and visible that costs occur throughout the cash management process. Visible costs are expected and remain relatively stable from month to month; office supplies needed process cash (balancing sheets, coin wrappers, envelopes) are an example of visible costs. Visible costs are easily added to a budget and tend to not drive up your costs of handling cash.
Hidden costs, on the other hand, are variable and difficult to include in a budget. The cost of labour is one of the highest hidden costs that occurs during the cash management process. Labour costs can vary from day to day; they are dependent on how accurate the transaction process has been throughout the day. When mistakes are made at the cash register, they affect how the cash management process will go at the end of the day when staff are dealing with an unbalanced till. The consequences of inaccuracies at the cash register drive up labour costs during the cash management process.
What You Can Do
After using a cost of cash calculator you will have a comprehensive understanding of where your costs of handling cash originate and which are putting the largest drain on your resources. At this point it makes good business sense to research how best to streamline your costs to reduce the strain on your business. One of the most effective solutions for to manage your costs is to invest in automated cash management technology.
Making the Investment in Automated Cash Management Solutions
Cash remains a popular way to pay so it is crucial that businesses learn to work with cash in effective ways. Making the investment in automated cash management solutions gives you efficient and accurate tools to better manage your time and money. After figuring out where your business spends the most money on cash management you can invest in the types of technology that will have the biggest impact on your business.
There are many automation options available and you can select a product that will automate one section of your cash management or the entire process. Consulting a cash management solutions provider will provide you with expert advice so that you can make the best decisions for your retail business and reap the rewards of having a secure, reliable, and efficient cash management system.
