Cash loss is a big problem for small businesses. When margins are tighter, each and every loss can have a more significant impact on the bottom line. With errors in cash handling being one of the major causes of cash loss, it’s important that your staff are handling your cash according to effective cash handling procedures; to ensure that small errors in handling or processing don’t add up to big dents in profits.
We all know that good cash handling procedures reduce both the opportunity for, and the occurrence of losses. But, you’d be surprised how many businesses fail to ensure that their staff are properly trained in good cash handling.
For many small businesses such as takeaways, convenience stores, or bakeries that operate with just a few staff on shift throughout the day, cash handling, cash management and banking can often be the sole responsibility of just one person per shift.
But if cash handling procedures are lax (or non-existent), this means that cashiers are left to operate autonomously; each with different ideas and around what constitutes good cash management. These inconsistencies can lead to wasted time, inefficiency, incomplete or skipped tasks, a loss of accountability or even a loss of visibility of your cash.
Clearly, good cash handling is crucial to the success of your business. Below are 3 tips to ensure better cash handling in your small business:
Of course, there are a number of innovative cash management technologies that could aid better cash handling in your business. Cash counters can help count your cash quickly and accurately, cash management software could help guide employees through their daily cash management tasks, and intelligent cash drawers will enable you to eliminate your cash loss at source.
However, despite the advancements in cash handling and cash management technology, there is still a human element involved with the majority of cash transactions. This means that your employees are one of the most effective weapons when it comes to reducing the level of cash loss in your business. Ensure that they are properly trained in, and are happy to follow, strict cash handling procedures.
Because if your staff aren’t trained on cash handling procedures, if you don’t have a strict process to tackle cash loss, or if the true extent of losses are being covered up, ask yourself this; is your cash really in safe hands?