Modern cashiers have come a long way from counting currency notes by hand. Yet we see errors, mistakes, embezzlement, fraud, and theft in cash handling practices.

If you are one of those businesses struggling to know why their cash balances do not match with the physical count, it’s time to rethink.

You need to identify and address some cash pain points that may be costing your business a good fortune. Your business should thrive and grow instead of suffering with cash handling challenges.

Let us help you through this!

Pain Point: Lack of Cash Handling Policy

The lack of a formal policy and internal controls is the root cause of other problems for any business dealing with cash.

Your employees will become indolent which will eventually affect their productivity. You’ll risk increasing theft and fraud.

It also creates an environment where shoplifting increases. You become prone to theft, embezzlement, and fraud from everyone if no one knows what is expected of them to safeguard cash (and other assets).

Solution: Implement Comprehensive Cash Handling Controls

Cash handling is a serious job and you must create crystal-clear policies. Do not leave any grey areas and ambiguity for your employees and customers.

Consider key elements of your cash handling policy for improved efficiency and security. Take a holistic approach and include relevant points like drawer assignments, supervision, double counting, cash drops, audits, coupon issuance, etc.

Duty segregation, access controls, and defining authorization roles should also be included in the policy framework.

Pain Point: Facing POS Cash Handling Risks

Most busy retail outlets, supermarkets, and restaurants face Point-of-Sale challenges during peak hours.

Some of the most common POS cash handling challenges include:

• Cash discrepancies - shortage and overage
• Skipped transactions
• Short-cashed customers
• Employee theft
• Mismatched credit and cash transactions
• Delayed cash drops to vaults

Often small businesses do not integrate their POS software with their money counting machines. So, their cashiers go through tedious credit and cash entry procedures.

Solution: Safeguarding Your POS

An effective starting point is integrating your POS with cash counting and self-deposit machines for increased efficiency.

Training your cashiers the right way is another solid practice to improve your POS safety. You must train them for cash counting practices, dealing with customers, discounts/coupon payments, cash drops, and reconciliation.

Despite all the efforts, you’ll encounter challenges at POS desks throughout the day. Therefore, prepare your staff including supervisors to help cashiers and handle any challenges that require the involvement of senior colleagues.

Pain Point: Employee Theft

Employee theft is still a big concern for all types of businesses in the US. In fact, US businesses lose over $50 billion a year due to employee theft.

There are different types of employee theft including work-hour time theft, asset theft, cash embezzlement, and digital fraud attempts.

An NRF report suggests that retail businesses lose an average of $1,551 per dishonest employee while the average number of apprehensions per year stands at 381.

Solution: Increase Scrutiny and Controls

Once you have formalized the cash management policy, it’s time to implement internal controls. Keep a firm grip on your employees to create an environment of accountability and responsibility at the same time.

Another key step is to increase the surveillance of your POS desk for all cashiers. It will increase the security of your premises, cash counters, and employees.

Pain Point: Counting Errors, Counterfeit Notes, and Double Counting

Even when you have tight controls, trained employees, and strict monitoring in place, you may suffer cash handling challenges through counting errors, counterfeit notes, and time wastage on double counting.

These cash pain points are more common where businesses face a large influx of cash. Common reasons for these pain points are unclear job roles, shared registers, manual currency counting, no counterfeit banknote detection, and inefficient counter machines.

Solution: Upgrade Your Cash Handling Equipment

If you want to save hours of labor work and increase the operational efficiency of your cashiers, invest in cash counting machines.

Equip your cashiers with bank-grade and efficient note counting machines that automatically detect counterfeit notes. These counters will also help you process multiple currencies.

Integrating these smart counters with your POS software allows you to assign clear duties to cashiers and reconcile discrepancies easily.

Pain Point: Large Cash Drops for a Busy Business

Another key challenge for large retailers and busy stores is to handle bulk cash and arrange multiple cash drops during peak hours.

Even when you have provided functional cash counting machines to your staff, they’ll need to match the speed of cash inflows. It means just the “working condition” note counters won’t do the job for your busy store.

Also, without clear security protocols and supervision, it will be hard for you to arrange multiple cash drops.

Solution: Instill Best Cash Handling Practices

First, instill best cash handling practices by educating your employees on rules, internal controls, and procedures.

Second, arrange adequate security surveillance tools for your store outlet. If possible, arrange a separate place for cash reconciliation and transfer to the vault.

Lastly, provide the latest and smart cash handling equipment to your cashiers including efficient money counters that save you maintenance costs, time, and resources.

Top Tips to Address Cash Handling Pain Points for Your Business

If you have an effective cash management policy, tight controls in place, and the right tools, you are doing the right job. Although some business troubles are inevitable, you can follow some tried and tested tips to avoid them.

• Talk to your employees about the importance of following internal controls. Make them realize - they are being watched.
• Invest in surveillance and security arrangements including smart cameras, supervision, and monitoring efforts.
• Even the perfect plan fails if your employees do not know how to execute it. Therefore, train your cashiers to handle cash, serve customers, and cooperate with their supervisors.
• Set transaction alerts beyond a certain limit for all registers for enhanced security measures.
• Organize multiple cash drops for your busy store outlet to avoid storing bulk cash in drawers.
• Plan and assign duties to your employees for each task clearly. Segregation of duties leaves no ambiguity to anyone.
• Finally, improve your cash counting practices by utilizing the most efficient hardware available to you.