Cash Handling in Retail
What is Cash Handling?
Cash handling, as the name suggests, refers to the various ways businesses handle and process cash, from the customer’s initial payment at the POS to the deposit of cash in their bank or cash centre.
Cash is still a popular and frequent payment method used to some degree by the majority of consumers, and needs to be handled and processed in the most efficient and cost-effective way possible, while ensuring the cash remains secure and employees are kept safe at all times.
The way businesses handle cash is vitally important to the smooth running of their stores and should be carefully considered.
Common retail Cash Handling processes
Exact cash handling processes vary from store to store, but below are some of the most common cash handling processes used by the majority of retailers:
- Setting up till floats
- Validating banknotes
- Daily cash counting of takings
- End-of-day cash reconciliation
- Storage of cash (at POS and in the back office)
- Working with cash-in-transit providers (if required)
- Depositing cash at a bank or cash centre
Processes like these are incredibly important for retailers to follow to ensure their daily cash handling doesn’t become a painful chore.
Challenges of manual Cash Handling
Although cash handling should be straightforward, it rarely is within most retail environments. Many retailers struggle with the following when it comes to handling cash:
- Depositing cash
- Losing time each day to counting cash in each till
- Manual counting errors
- Shrinkage
- Staff inefficiency
- The ever-present risk of counterfeit banknotes
- Poor audit trails and reporting errors
- Reconciliation
- Secure storage of cash
- Theft
All of which can cause major headaches for retailers, big or small.
Cash Handling Best Practices
There are several ‘best practice’ recommendations that retailers should follow when carrying out cash handling procedures:
- Make security and efficiency your number one priority when it comes to cash handling
- Ensure all your staff are trained on your cash handling procedures to minimise errors
- Ensure all cash handling processes are always done in a safe place and by two employees together – this reduces shrinkage and minimises the risk to your team
- Count cash or do till lifts at different times of day, so would-be thieves cannot predict your routine
- Invest in intelligent cash handling equipment to replace manual cash counting, which can be prone to errors, detect counterfeit notes, offer improved security and save money
- Invest in software that can help with cash reporting and audit trails to identify and correct problems simply and effectively
- Work with a trusted and experienced Cash in Transit (CiT) company to reduce risks when transporting and depositing money, and get the added benefit of advanced credit
Cash security in retail environments
One of the biggest concerns around cash handling in most retail environments is keeping it secure – and, of course, keeping your staff safe at the same time.
With retail crime currently at an all-time high, it’s essential that you keep your cash takings secure.
This can be achieved by investing in security deposit devices, such as our CounterCache range, and secure cash trolleys to transport cash securely across larger retail environments, as well as CCTV, security screens and in-store security personnel.
It’s important to find the right kind of security that fits well with your store(s) and location(s) and your workforce.
Also consider that any security measures you introduce to your stores will need to be maintained and monitored, and always make it clear who in your team is responsible for carrying out these checks.
Cash Handling across retail sectors
When it comes to successful cash handling, there isn’t a one-size-fits-all solution to suit all retail sectors, but there are lots of options to suit your particular business needs.
Sectors such as grocery/convenience stores, petrol stations, hospitality and Quick Service Restaurants (QSRs) can all benefit from a variety of intelligent automated cash handling solutions, such as Volumatic’s all-in-one solution, the CounterCache intelligent (CCi), which validates, counts and securely stores all banknotes at POS, plus our range of CountEasy money counting scales, perfect for accurate and efficient till drawer counts in your back office or shopfloor environment.
Smaller retailers who are looking for simpler solutions may opt for our forgery detectors, which fit discreetly at POS, plus for additional note security, our CounterCache secure deposit devices are perfect.
Another good option for stores with a larger square footage is our Secure Cash Trolley, which allows your team members to collect their cash takings from each till as securely as possible, and with features like our unique speed-locking wheels and a plethora of other security features, you can be confident your cash will remain safe and secure while on the move.
Improving Cash Handling with technology
Better cash handling isn’t just down to the devices themselves – in some situations, your store needs extra technology to keep track of your cash intake from POS to your bank.
For those looking for a complete end-to-end cash management system, look no further than the combination of the CCi intelligent deposit device and our latest and greatest cash management software, CashView Enterprise.
CashView Enterprise gives you real-time reporting and offers you a full audit trail of all your devices across your store or even your entire estate.
You can choose from different apps to enhance your software even further, giving you a true end-to-end cash management solution for your retail stores.
FAQs about Cash Handling in retail
It’s common for anyone in any retail business to have questions about cash handling, so here is a summary of some of the most common questions we are asked most frequently:
Q) Is Volumatic cash handling equipment accurate and reliable?
A) Yes, our cash counting scales and our CCi solution are all 100% reliable when it comes to accurate cash counting and adding additional security, and our best-selling forgery detector, the BV30 SD, is Bank of England gold standard, meaning it detects all known forgeries. Our solutions are built to the highest standard, manufactured by us, and last for years.
Q) How do I know what cash handling solution(s) are right for my retail business?
A) At Volumatic, we know how important it is to provide you with the right solutions to suit you. We pride ourselves on not giving you the hard sell – we will assess your business needs and make recommendations based on what will make life easier for you and save you time and money.
Q) Will I see a decent ROI if I invest in your cash handling solutions?
A) Absolutely – for example, our customers have reported a saving of up to 75% on cash processing costs when using our CCi solution – take a look at our ROI calculator to see how quickly you could see a return.
Why is proper Cash Handling important in retail?
Proper cash handling is vitally important to retailers quite simply because you stand to lose time and money if you leave it to chance.
Manual cash counting and processing can take up hours of time per day and may still not be 100% accurate.
But with the convenience and efficiency of cash counting scales or an intelligent all-in-one solution like the Volumatic CCi, you’ll get 100% accurate counts first time, every time, giving you back hours of time to spend with your customers or on other, more important retail tasks.
Proper cash handling also means that your reporting, auditing and reconcilation remains seemly and up-to-date, and requires minimal effort from your side.
What are the most common Cash Handling risks in retail stores?
Undoubtedly, the most common risks when handling cash in a retail environment are theft (both external and internal), fraud and administrative errors. UK retailers lose approximately £2.2 billion per year to shoplifting and direct theft from tillpoints – a rate that has been rising steadily for many years.
Add to this £4.5 billion to £11 billion a year lost to shrinkage (internal theft and admin errors), and that all adds up to a nightmare for retailers.
But this can be easily remedied by investing in the correct cash handling equipment. Voluamtic’s secure deposit devices in our CounterCache range mean that cash is secure and hidden away at POS, removing temptation. Our all-in-one CCi solution can also be fitted with Operator Accountability (OA), which lets you know which staff members are logged nto which tills, so administrative errors and discrepencies can be identified and easily rectified.
How can retailers train staff on Cash Handling procedures?
It’s important that all members of your team are trained on how to handle cash and your cash handling procedures.
Ensure cash processing is always carried out with at least two members of staff for extra security, and if you have to handle cash on the shop floor, vary the time you do this each day so that would-be thieves who may be monitoring you don’t get wise to your routine.
If you decide to invest in any of Volumatic’s cash handling solutions, we will support you and your team on how to use these devices, as required.
Our CountEasy scales require virtually no training as they are so easy to use, but you can always follow our how-to-videos online. For our more advanced CCi solution and our CashView Enterprise cash management software, full in-store training will be provided by our Sales team to ensure you can use it with confidence.
All of our solutions come with detailed training manuals to help as well.
How often should retailers reconcile cash in store?
Cash reconciliation is the process of comparing a retailer’s internal cash takings with their bank statements to ensure they match. Reconciliation is important so that all cash movements in your business are verified and accurate. It also validates your actual cash balance and identifies discrepancies, errors, or fraud.
How often stores do this depends on the size of your business and how much cash you take each day. Retailers who take large amounts of cash through bigger stores may need to do this more than once a day, whereas smaller retailers may only need to do this a few times a week, but it is good practice to reconcile your cash at least once a day, whatever size your business, as the sooner any discrepancies are discovered, the quicker they can be put right.
Volumatic’s CashView Enterprise cash management software, used with our CCi all-in-one solution, can make cash reconciliation quick and easy as it does all the hard work for you and helps you keep track of all your cash takings in real-time.
What role does Store Management play in Cash Handling?
As a Retail Store Manager, you should be embracing proper cash handling processes and encourage your in-store teams to follow them.
When using the proper cash handling solutions, cash handling becomes quick and easy, and instead of wasting precious hours on manual counting and processing, you can dedicate your time and your team’s time to other key tasks.
If you manage a store with multiple till points and want full visibility, our CCi intelligent deposit solution, together with our cash management reporting software, CashView Enterprise, can transform your cash handling and give you a view of all cash takings from POS to bank, making life much easier.
Cash handling need not be a chore if dealt with correctly and Volumatic solutions are here to help – take a look at our case studies to see what the likes of Tesco, Co-op, Halfords and Card Factory managers think of our solutions.
