Impact Partner Content: Absa
Receiving payment from a customer for a sale should be a relieving and fulfilling moment for any retailer. Stock is moving off the shelves and you‘re able to cover costs incurred to procure that item. However, successful businesses need to continually look for ways to optimise their cash and margins.
Cash is the lifeblood of a business. Its impact exists beyond event-based transactions, namely depositing cash sales proceeds and withdrawing change or payroll. There are cash value chains within and outside of your business - for example between point of sale, cash up, making up deposits and withdrawal requests, transportation of cash, reconciling the deposit/withdrawal.
These value chains are time-dependant and process-based. Although they look like separate activities, they’re interlinked and often affect each other. Good cash management is when the value chain is managed as a whole to mitigate risk, exploit efficiencies, reduce time, and optimise cost.
What to expect from your Cash Service Provider
A good Cash Service Provider supports your business through all of the value chain elements, provides you with visibility at every stage of what is going on with your money and delivers the agreed services as cost effectively as possible.
Know the costs of your cash value chain
Cash deposit fees are only one of the costs of accepting cash at your tills. Every step in the process incurs a cost that should be managed. The cash deposit process is repetitive, and each step in the process should be administered to control and prevent loss. A retailer should put as many risk mitigation and security measures in place as they can afford e.g. insurance and secure cash devices.
Ways to improve the cash process, save money and optimise
There are costs associated with every step of the cash handling process. Rather than cutting corners, look at ways to reduce risks and make sure you get the most of your chosen cash management solution. Trying to be economical with your cash process may seem tempting upfront, but the repercussion of cutting costs will leave you with a risk-exposed business. It’s inconvenient and expensive to get a business back on track after a robbery.
Cash handling tips:
Perception is everything: Fewer hands on the cash and a reputation for a ‘hardened site’ will dramatically reduce the risk of getting earmarked. Do everything to make your store look like a difficult target – i.e. locks work, visible security, establish processes and procedures and continually check that everything is working. Also be sure to not talk about money and banking unnecessarily.
Get the best solution for your business needs: From the till until deposited into a store’s bank account, cash can be handled between three and eight times. In every step of the process an average cash loss of 0.15% can be incurred. Use a cash handling service provider that offers tailor-made solutions and reduces the number of hands on the cash, increasing efficiency, accuracy and removing temptation.
Save, but don’t be cheap: Choosing to transfer money yourself and not making use of a trusted and highly secure Cash-in-Transit (CIT) supplier is a dangerous way to try save money. The consequences for the continuity of your business if you or a staff member is compromised may be detrimental. Rather protect your cash/staff/customers and look at operational efficiencies in the cash-handling process. Your time is best spent managing your business, not taking cash to the bank.
Prevention is better than cure: It’s essential to have insurance, so as to reduce the chance of a financial set back as the result of criminal activity. A robbery affects your cash flow for longer than you think, and will take time to recover, especially if you have to go to court. Don’t handle money in the open, rather do so in a secure area and ensure your cash is safe as soon as possible.
Invest in a good safe: It might take slightly longer in rural areas to move cash in metropolitan areas, so make sure you have strong measures to keep the cash safe. Better still, look at a secure cash handling device that counts and stores cash. This will reduce administration and processing time while keeping cash safe. Most of the solutions on the market also notify you when the cash is collected.
Do your homework: Don’t just buy any safe or take on any supplier. The key to the store’s safe should always be held by the CIT company and it be made known to potential robbers that they will leave the scene empty-handed.
