When CFOs see their companies’ profits being eaten away by inefficient cash handling, they know that they have to take action.
In response to poor cash flow, high labour costs, a high shrink rate and other financial issues, the wisest of CFOs prioritize cash management. By doing so, they can effectively overcome many of their largest financial challenges. Technology has revolutionized many aspects of the business world, and cash handling is no exception. With the use of cash management technology, CFOs can reap many rewards.
Improved Cash Flow
Cash is the lifeblood of any business, and it’s usually top priority for CFOs. Without enough liquidity, businesses may be forced to close their doors. This happens all too often. Though negotiating better credit terms, selling excess inventory, getting a line of credit, increasing product prices, and enforcing payment discipline are all common ways to improve cash flow, some CFOs are going a step above these quick fixes and looking into their cash management strategy for a long-term, sustainable solution to cash flow.
Cash management technology can allow businesses to have less money in their vaults, get access to their funds quicker, and reduce losses, all of which can improve liquidity. With a cheque scanner, for example, businesses can deposit their cheques from anywhere, anytime, and they don’t have to wait as long for these digital cheques to clear. A cash recycler can also help cash flow, by recycling the money from previous transactions for future transactions, meaning less money has to be set aside just in case cashiers run low.
Reduce Labour Costs
Labour amounts to one of the biggest expenses in business. And any reduction in labour can make a huge difference to your company’s profits. By using cash management solutions, you can cut hours of labour every single day. Cash handling activities take retailers 15–16 hours on average every day. That’s a lot of money that your company is spending on counting, sorting, depositing, and reporting cash.
But when you invest in cash recyclers, currency counters, cash sorters, and cheque scanners, you can have the machines doing the work that employees previously had to spend hours on each day. The machines work at record speed, handling your cash efficiently and effectively. With these solutions integrated at your business, you can eliminate many of the time-consuming manual cash handling activities that increase your labour costs. You can cut shifts, have fewer people on the floor, and redeploy cash room employees to save money.
Retailers, restaurant owners, and many other types of establishment lose out significantly to shrinkage. Employee theft and administrative errors are top causes of shrink, but they can be reduced.
By integrating cash management solutions, you can reduce your losses caused by shrink. You can keep your employees’ hands off your cash by letting the machines do the work instead. And considering these machines are 99.9% accurate when it comes to counting, sorting, verifying, and reporting, you can count on fewer errors costing you money.
Better Customer Service
No customer wants to wait in a long line. No customer wants to be ignored by cashiers who are too focused on the cash in their hands. And no customer wants to be given back the wrong change or given counterfeit money. If any of these customer service issues occur at your business, you could lose out on loyal customers who will go elsewhere for their needs. And you’ll lose out on revenue.
With cash management solutions, you can improve customer service. The machines are quick, so lines will move faster. The machines are accurate, so customers will always receive the right change. The machines verify all incoming bills, so no one will be given counterfeit cash. And the machines do the work, so your cashiers can focus on the customers instead of the cash.