Main Reasons That Impede Better Cash Handling
Before knowing how to build an effective cash handling system, it’s worth knowing what can potentially lead to cash handling issues. Avoiding these problems will play a significant role in your retail cash management. There are generally three common problems in the retail industry that lead to cash handling issues:
1. Failure to do due diligence
One of the most important reasons to implement cash handling procedures is to foster due diligence. Effective cash management allows you to know where your money is, who has access to it, and how it will be used. Without concrete answers to these questions, you’ll be hard-pressed to manage your accounting effectively. You could also easily run into fraud, theft, errors, and cash flow problems.
2. No digital or paper trail
The lack of a paper or digital trail is a recurring problem in cash handling. Keeping a clear trail of your cash handling process protects you while making it easier to identify and correct errors when they occur. It lets you know where your money is and who has access to it.
That’s why it’s advisable to use automated cash management technology that can significantly reduce errors and help you identify and correct them quickly and easily. Outdates manual processes are often plagued by human error. There are smart safe and cash recycler solutions that track the activity of safe users, such as who is putting money in, how often, when, and how much.
3. Safety defects
Solving physical security flaws is not just about investing in smart safes or cash recyclers. You also need to strengthen security in the cash handling process right at checkout. Receipt cancellation, for example, is a major issue that needs to be addressed. Cashiers sometimes try to steal by erasing the transaction from the register when someone pays in cash. This means that the business has no record of the transaction, and the cashier keeps the money in their pocket. A good point of sale system does not allow cashiers to perform this action without specific authorization, which reduces employee theft.