Retail Cash Management21/08/2022 0 By indiafreenotes
Retailers are required to accept, process, and store cash payments as well as the required amount for change. Keeping cash increases the need for working capital; and cash handling processes waste human resources. Consequently, an effective cash management system is one of the key tasks for the retail sector.
Cash circulation expenses for retail businesses:
- Cash insurance during storage and transportation
- Interest on deposit and withdrawal
- Cash collection services
- Internal personnel costs
- Maintenance and equipment of security systems for the cash counting room
- Delay cost in depositing the collected cash to a bank account (risk of a cash gap)
- Repeated collection costs, recount, and dispute resolution in the event of a discrepancy between the declared and actual collection amounts
- Expenses in case of internal fraud or theft
- Purchase and maintenance of special equipment for validation, counting and packing of cash
Optimization of Retail cash circulation
- Order automation for the cash collection and exchange delivery
- Cash distribution within the organization (between points of sale/service)
- Cash Flow visualization from cashier systems and electronic cashiers
- Instant deposit using automated deposit machines (ADM)
Improved customer service
Nothing is more frustrating than being a customer trying to get help and finding that no store assistant is available. Employees are often in the back of the store, busy with tasks such as counting the till at change of shift, instead of providing customer service out in the store. These days, when customer service is crucial to staying ahead of the competition, you have to free up staff for more customer-orientated work. With cash management in place, counting money is done automatically.
The role description for a cashier has changed significantly in recent years, you can read more about it in our blog post “Take a look at the cashier’s new role”.
Efficiency and time-savings
The time needed for reconciling and balancing the cash register is an ineffective process that takes time away from more productive activities. Since neither the manager nor the staff will spend time handling the cash, they can focus on running the business and on revenue-generating activities instead. The specific time savings depend, of course, on how big the store is, but the time spent on cash handling can be cut by, as much as 50% by using cash management.
No human mistakes
With cash management, the customers always get the right amount of change back. Also, the staff does not have to stay after closing to count today’s cash. The solution automatically counts the money and always does it correctly. No more need for double counting and recounting, and no risk that there will be counting errors.
Every cash purchase will take less time, and with reduced queues, there will be time to serve more customers. Also, all the time saved every day by reducing the counting of money frees up time for sales promotions and customer service. Moreover, of course, a well-run store with excellent customer service attracts more customers.
Cash Management decreases cash costs by 30%. First of all, you reduce your costs by simplifying your operation in the business. Then, you will get both lower CIT costs and insurance costs since cash is securely closed and sealed.
Cash is still the most commonly used form of payment in retail, particularly for smaller transactions of €20 or less. Still, many retailers handle their cash manually, which makes their businesses vulnerable both to robberies and internal theft. When the cashier has no access to the money, the risk significantly lowers. One simple robbery can cost up to € 13.000 in revenue losses and staff counselling. With a cash management solution, the staff feels safer, and long opening hours are less risky.
Uses in Various Sectors:
Convenience and Grocery Stores
Cash Management provides stores with the tools to increase efficiency by changing the way managers and employees handle, reconcile and report cash within the convenience store setting. Reconciling tills takes less time. Reporting is in real-time, and credit can be applied to an existing bank account immediately. Decreasing the risk of loss and saving time by bringing all cash handling functions in-house, CM reduces the amount of trips to the bank, keeps managers and employees in the store, and makes banking relationships more efficient.
Restaurants, Fast Food Dining and Retail
With employees managing your money throughout the day by managing cash drawers or self-banking, Cash Management (CM) can reduce 1-2 hours per day of reconciling and managing daily cash sales for your staff. CM eliminates the need for multiple touches and puts control back into your manager’s hands by eliminating the need for mangers to leave the establishment to make deposits and the ability to stay in the stores and focus on daily tasks. CM also reduces errors and saves time for staff. This all contributes to the cost savings improvements. CM provides the processes, reporting, and accountability to help make cash handling worry-free and efficient.
Cash Checking Stores
Cash Management offers a device that keeps cash safe until courier pick up, a reporting system that offers real-time reporting, and the ability to reconcile drawers easily and swiftly. Decreasing the risk of loss and giving your staff peace of mind and confidence.
Entertainment Venues including Casinos
50 different stations, hundreds of employees all handling their own tills can be nerve-racking. That’s the world of sports and entertainment venues, and Casinos. Cash Management offers a controlled environment for cash counting, saving each employee time daily anywhere from 30 to 60 minutes equaling potentially hundreds of hours per week for the business. Managers spend on average 2 or more hours less time closing the books at the end of a shift or event with CM solutions in place. Increase employee efficiency and cut down on time and save on your bottom line.
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