The costs associated with handling cash can be very deceiving; on the surface, it may seem like manual cash management is the most cost-effective option. This is because many retail businesses only take into consideration the direct expenses associated with handling cash, or the most visible costs, like refilling supplies or transport to and from the bank. In reality, these are far from the only costs you undertake when you decide to manually handle cash. When it comes to cash handling, there are several hidden costs you need to know about in order to make an informed decision when it comes to retail cash management. Here are some of the reasons we think you should take a closer look at the costs of handling cash.
Manual cash handling is incredibly inefficient, requiring huge amounts of time and energy to ensure that everything is counted and reconciled properly. Employees will often count cash two, or even three times in order to make sure they have counted correctly, and while being thorough is admirable, it’s clear that there’s got to be an easier way to ensure accuracy. Manual cash management is very labour-intensive and will make your workforce less productive, occupying them with menial and tedious tasks. Loss of productivity can translate directly to loss of profits. Automated cash management does the same work in a fraction of the time, while also guaranteeing accuracy, meaning that your staff’s energy can be redirected elsewhere.
The Cost of Labour
Labour costs are one of the more insidious expenses associated with handling cash. Labour is the most expensive part of doing business, constituting approximately 70% of a business’s overall expenses. As mentioned earlier, manual cash handling is incredibly labour-intensive, and all those long hours in the cash office counting and recounting bills and coins aren’t just a waste of time, they’re also costing you a lot of money. What would take multiple employees hours to complete can be done within seconds by automated cash management technologies. Bill and coin sorters count money for you instantaneously, and with complete accuracy, meaning that you can reduce the amount of shifts scheduled for cash management, and save on your bottom line.
The Cost of Error
Serious errors can be made at any point in the cash management process when you are relying on manual cash handling. From inputting a cheque incorrectly, to not properly recording deposits and withdrawals from your safe, to miscounting bills and coins at the end of the night, innocent but costly mistakes are bound to arise when you are relying on your employees to efficiently and quickly handle cash. While occasional small mistakes may not seem like a big deal, they can add up quickly, and they also expose the weaknesses in your cash management system. If small errors are being made, there’s the potential for larger, more damaging errors in the future. Automating your cash management process gives you peace of mind, as automated cash management technology guarantees accuracy.
The Cost of Theft
Theft, both internal and external, is a huge problem in the retail industry. From product theft to the use of counterfeit currency to dishonest employees stealing from the workplace, theft can have a serious impact on your bottom line. When you depend on manual cash management systems, you may actually be making yourself more vulnerable to theft. Employees left in the cash room to sort and count money at the end of the night have ample opportunity to pilfer, and professional counterfeiters are adept at catching on to businesses that ineffectively check for signs of fraudulent currency. Automated cash management is your best defense against theft. Counterfeit detectors are 100% accurate, allowing you to completely halt the circulation of counterfeit bills in your retail business. Additionally, bill and coin sorters, cash recyclers, and smart safes, all increase accountability amongst employees, while simultaneously reducing the need for employees to handle cash extensively. The costs of theft in your business can be easily curtailed with cash handling technology.