One of the challenges business owners and management staff face everyday is the time consuming process of counting and balancing cash received during the business day. Traditionally, cash is counted at the end of the shift or at the end of the day or sometimes both. This is when you are tired, want to go home and are often in a rush to leave. This is when mistakes can occur.
Counting mistakes can be costly, making an inaccurate deposit to the bank can also add additional labour costs when trying to reconcile the bank account at the end of the month. To make matters worse some banks charge a fee for out of balance deposits.
Although there are many pain points in cash management, the main ones revolve around counting, recounting, balancing cash receipts to cash accepted at the point of sale (POS) reconciliation of bank deposits, securing all cash receipts until banked, and having sufficient security and controls to guard against internal theft and robbery.
Often times, senior staff are assigned cash counting duties as they are among the most experienced individuals in the business. However, this not only incurs excessive labor costs but also takes managers and supervisors away from their primary duties in growing the business. This means less time is spent creating the perfect guest experience, employee coaching, mentoring and training, scheduling staff, monitoring food costs, paper costs and waste, and the list goes on. Managers and supervisors time is valuable and should not be wasted counting and processing cash in the back office.
Theft and Shortages
Internal theft and cash shortages are a reality in many businesses. Cash shortages and variances need to be monitored closely on a daily basis to limit losses and more importantly to send a clear message to all staff that cash controls are working effectively. If these controls are not implemented and monitored daily, excessive amounts of time and money can be spent trying to reconcile unbalanced deposits, or even worse trying to find missing bank deposits. Reducing cash exposure at the point of sale (POS) typically involves having a manager or supervisor remove cash to a back office safe this task often has to be performed during a busy breakfast or lunch rush so is not performed as often as it should be increasing exposure to risk of loss from robbery
Lack of Reporting and Reconciliation Tools
The classic pen and paper method of reporting has been replaced in some businesses by the “spreadsheet method” of recording and tracking. While spreadsheets provide greater accuracy performing the math, they do not provide the integrated management and reporting tools most often required to track data and report information to management.