Retail theft is serious business: an estimated $10 million each day is lost to shrinkage in retail, adding up to nearly $4 billion in losses each year for Canadian retailers. When faced with these kinds of astronomical numbers, it makes sense to take steps to protect your business from potentially huge losses.
Fortunately, we live in a world where technology continues to provide solutions to increase the safety and security of retail. Investing in cash management gives your business an extra layer of support and can prevent you from being another business that falls prey to shrinkage. It benefits your business to invest in cash management to reduce theft; increasing your security is a win-win solution for your business. Not convinced? Here’s why businesses need cash management to reduce theft.
Internal theft can have disastrous consequences for any business. Not only can staff members take advantage of having access to cash or merchandise, but internal theft can also have negative impacts on the workplace environment and employer-employee relations. Protecting your business from employee theft is possible when you adopt effective cash management practices.
Developing and implementing policies regarding cash management is the first step to creating awareness for all staff about internal theft and letting them know that all cash processed through the store is being closely monitored and tracked. Creating clear policies about your designated cash management policies and any possible consequences for non-adherence to said policies is extremely important.
Once you have set policies into motion and all your staff have been properly trained and informed, your business can benefit from investing in cash management technology. Using automated cash management technology—such as currency counters or recyclers—much of the cash handling duties will be completed by machines, removing the burden of responsibility from your staff. Cash management technology has the added benefit of increasing the efficiency and security of your business. Consider how your business can benefit from investing in technology and reap the rewards of a secure business.
External theft can be attributed to a number of factors. Theft can be a result of direct loss of merchandise, but it can also be directly related to cash management. This can be through theft of cash assets or through the acceptance of counterfeit currency. External theft poses a threat to all retail operations. However, making use of proper cash management techniques to reduce theft and solutions provides your business with the security it needs to prevent external theft.
Investing in technology such as counterfeit detectors allows you to confidently and accurately identify and reject counterfeit bills. Many counterfeit detectors are now equipped with technology to identify multiple types of counterfeit bills as they recognize all of the security features on each bill.
Investing in currency recyclers or smart safes is one way to protect your business from theft. These two solutions provide security to your business by securing your cash and setting up a distinct and impenetrable barrier between your cash and your customers.
What You Can Do
The first step in revamping your cash management to reduce theft is to set up clear guidelines, policies, and procedures so that each member of your staff is well informed on how they should be properly handling and managing cash in your business. Using technology to support your effective cash management processes further increases the security of your business. There are many options available to automate the cash management process from beginning to end, giving your business an efficient and safe method of handling and processing cash.