You might be under the impression that accepting payment from credit cards is the most expensive method of payment for your company. There is no denying that each credit card transaction can have a potentially hefty fee attached to it. But have you stopped to consider just how much cash handling is costing your business? You might be surprised to learn how much you spend on your cash management process.
Calculating the cost of cash is important for any retailer, large or small. Once you have determined how much money you spend on your cash process, you can begin to implement changes that will streamline your process and increase the efficiency and profitability of your business.
It’s More Expensive Than You Think
Calculating the cost of cash will allow you to see where you are spending your money during the cash handling process. There are many smaller processes that make up your cash management process as a whole. These include time spent on cash transactions, counting and balancing tills at the end of the day, figuring out any discrepancies in your totals, preparing deposits, and completing deposits. Once you attach a dollar value to the time that you and your staff spend on cash handling, you will see how accepting and processing cash costs quite a bit of money for your business.
Calculating the cost of cash for your business may give you a shock, but you do not have to accept it as a continual expense. Knowing where you spend the most money in the cash management process gives you the power to reduce your costs and transform your cash handling process from costly to profitable.
Change Your Business’s Relationship with Cash
After determining how much your business spends on your cash management process, you can begin to make changes that will allow your business to benefit from accepting cash. This may require a complete overhaul of your cash management procedures, but it is a worthwhile investment to make cash—the most popular way to pay—an avenue for profit for your company.
Investing in changing your cash management process is worthwhile for any retail business, whether you handle large or small volumes of cash. Investing in cash management technology not only increases the efficiency of your business, but it adds security and protection for your staff and your cash assets.
One of the most costly factors in your cash management process is the labour costs that are associated with handling currency. From completing cash transactions to counting, sorting, and balancing cash in registers, your staff can spend a large amount of time simply dealing with cash. Automating your cash processes can give your staff the freedom to focus on customer service and sales. Automation can also protect your business from internal theft, transaction errors, balancing issues, and counterfeit fraud. Reducing labour costs associated with cash handling is one of the main ways to improve your cash handling efficiency and reducing your company’s retail shrinkage.
Accepting counterfeit currency is an immediate and potentially very costly loss for your business. Counterfeit fraud is a risk of handling cash, but it doesn’t have to affect your company. Investing in counterfeit detection technology allows your staff to quickly and correctly identify counterfeit currency and prevent it from getting in the till. Your cost of cash doesn’t have to be driven up by accidentally accepting counterfeit money!
Adopting cash management technology into your business can greatly reduce the amount of money your business spends on accepting and processing cash. Increasing the profitability of working with cash for your business all starts with calculating the cost of cash!