Best Practices for Handling Cash
Do you have a set schedule for bank runs? Do your sales match your deposits every day? Are all of your employees on the same page when it comes to handling cash?
If you answered no to any of these questions, your store has the perfect loopholes to allow someone to steal cash. You can protect your store by eliminating slush funds, filling in the gaps in the accounting books, and much more.
Eliminating the Slush Fund
Some small retail stores often expect their cashiers to make up for shortages from their own pockets. Not only is this illegal in most jurisdictions, but it encourages cashiers to build up an overage in case their cash drawer comes up short. This leads to a pool of resources, which is generally a bad idea, because it can hide the real reason the drawer goes short. Recording all losses can help put a stop to this.
Standardize the Process
Everyone that has the potential to handle money and transactions in your store needs to know exactly what to do with the cash they receive. If there’s three different methods of cash handling in your store, this could lead to a serious headache later on when trying to track loss through money and bank statements. Consistency is key to effectively handling cash flow.
Have a Schedule for Handling Cash
This goes hand-in-hand with the second tip. If your company has been in business for a while, you can predict when your peak hours. Create a schedule that allows you to count and deposit cash during low traffic times at your store. Keep that routine as consistent as possible.
Don’t Mix up Accounts
Do you have a petty cash fund? If so, consider simplifying your accounting process while simultaneously deterring cash theft by running all business related purchases through your point of sale or using a company credit card. Petty cash funds have a way of turning into an “employee borrowing” program. Creating a paid out receipt for an expenditure tracks the cash used as well as keeps the amount of cash on hand for small purchases to only what is needed.
Know your Limits
Avoiding theft and lost cash means setting limits as to how much cash can be in your registers. Having more cash in registers increases your risk of theft.
Check your Cash
While this should be done during the transaction, not every counterfeit bill is caught. Invest in a counterfeit detection pen, or read how to learn about the physical and security characteristics of currency HERE.
While there is no foolproof way to eliminate theft, implementing these tips into your daily routine will have you on your way to increased profits and peace of mind. For more information on employee theft, read our article.
DIGIOP offers a full suite of Loss Prevention solutions to help retailers take their business to the next level. Call us to today to learn how we can help you transform your business.