What Are the Benefits of Cash Management? (Updated 2020)

    Apr 03 2020

    Topics: Retail, Canada, Cash Handling Solutions

    If you haven’t given thought to your business’s cash management procedures, your bottom line may not be as healthy as it could be. The right procedures ensure your business is operating at its most optimal level. In turn, your business will continue to succeed. The benefits of cash management are numerous, but the few listed here will show you just how important effective cash management is.

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    Good Cash Management Procedures Save Time

    As you know, time is money, and the right cash management procedures can help you save time. If your employees are counting cash by hand still, they’re probably spending anywhere from half an hour to an hour on this task alone. That time could be better spent on another task. Maybe they could dedicate more time to helping customers, improving their experience, or on prepping for the next day’s opening.

    One of the best ways to reduce the time it takes to count cash is to automate your cash management processes. When you automate your procedures, such as by investing in a currency counter, counting cash at the end of the day can take less than five minutes. The machine will do it quickly and efficiently. Better yet, it can count cash with a higher rate of accuracy. That means less time spent recounting your cash.

    Put your time (and that of your employees) to better use by investing in automation. With it, you can attend to the things that really matter.

    Reduce Shrinkage for Your Business

    One of the key advantages of good cash management is that it can help you cut down on shrinkage. Shrinkage happens in almost any business. When it does, it has a negative effect on the bottom line. When you automate your cash management, however, you’re working toward limiting the shrinkage that goes on in your business.

    When employees count money by hand, they may end up making mistakes. They’re only human, after all. They might lose count, transpose numbers, or make a number of other errors. When your cash management procedures are automated, there are fewer chances for employees to make the kinds of mistakes that lead to cash shrinkage, such as miscounts. As a result, automation can help you give your bottom line a little boost.

    Better Cash Management Helps Achieve Optimal Cash Flow

    Good cash management could save you time and money. With today’s technology, there’s also the benefit of data. When you automate your cash management procedures, you can use the data the devices collect to gain a better understanding of how cash flows into and out of your business.

    For example, if you invest in a smart safe, you can learn how quickly you run through certain denominations. Then, you’ll be able to keep the right number of $5s and $10s on hand. You might also be able to see patterns, such as when your business gets busy and when it slows down. Additionally, you may determine if you need to have more cash on hand, or even if your store float happens to be high.

    Information is power in business. The more you have of it, the better you can run your business.

    Is It Time to Automate?

    These are just some of the many benefits of good cash management procedures.

    If you’re still counting up tills by hand or guessing at your store float, you should consider cash management automation for your business. With the right technology in play, you’ll be preparing your business for success.

    Not sure where to start? Get in touch with the experts. Their experience and advice will help you make the right technological choices.

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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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    CashTech Currency Products Inc.
    1040 Cardiff Boulevard
    Mississauga ON, L5S 1P3

    905.696.0733