How to cut the cost of inefficient cash handling
Inefficient cash handling is one of the top issues plaguing operators today, according to the fourth annual cash management study from CSP Daily News. In all four years that the study has been conducted, issues such as counting, recounting, discrepancy reconciling and making deposits have been ranked as a “serious issue” by the vast number of survey respondents.
In fact, this year, the problem with miscounted money and account discrepancies was at 70 percent, up from 62 percent in 2013. What does this mean for your business? If you deal with cash on a regular basis, how can you protect it against poor cash-handling practices? Are there ways to make sure everything adds up?
To help answer these questions, here’s a look at some of the specific ways cash-handling procedures tend to become inefficient, along with some suggestions for streamlining these issues:
How cash-handling procedures become inefficient
As the CSP survey reveals, business owners today know proper cash management is a problem — but do they know why? To help uncover what’s going on when counting doesn’t add up, consider the following:
Manual cash handling. In any industry, good help can be hard to find. And companies that use employees to count cash or manage money must deal not only with extra labor cost, but also with higher risk that comes with manual work. People make mistakes, and these mistakes can lead to financial problems.
Lack of oversight and bookkeeping. Businesses that still rely on age-old pen-and-paper methods of keeping accounts reconciled are missing out on the efficiency of electronic reporting. Likewise, deployers who don’t pay attention to financial dealings and ask accountants and managers questions are opening themselves up to risk.
Fear of automation. There are lots of reasons why business owners resist automation. The biggest one comes down to fear. Owners are afraid of the initial investment to purchase equipment; they are worried that machines will break down.