7 Cash Handling Best Practices to Immediately Implement

Lauren Christiansen9/23/2021

What is Cash Handling ?

Cash handling is the act of gathering, processing, counting, and depositing money. It is often overseen by a bank teller, though some retailers and restaurants now have the ability to print money orders and cash checks. Cash handling is vital to the financial sector. It's also important to you if you're in charge of your company's finances.

1. Organization

From maintaining the back office to ensuring there are enough cash handlers available, organization is critical. It is also applicable to how you manage your cash. Restaurant managers must always be aware of where cash is and how it flows in and out of the business.

Great organization skills will minimize loss and theft. They also eliminate common cash handling issues that waste time and resources. Optimize labor management to ensure a POS tracks all employee data at all times. Keep all important paperwork or digital files in one secure location. Know exactly when and how to retrieve these items, and provide applicable managers the access they need.

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2. Enforce Policies and Procedures

There's no reason to establish cash handling rules if managers don't keep them and enforce them. Ensure workers receive effective training and are confident navigating all of the various procedures. Checking in with staff throughout the business day to see whether they are abiding by policies and procedures. You don't need to harass or distrust them; you simply need to engage with them. Review how new hires access cash, handle cash funds, operate cash registers, and process card payments. It is also an opportunity to improve knowledge and correct any mistakes before any issue becomes a larger concern.

3. Keep Engaging Staff Members

Disengaged staff is a catalyst for poor cash handling practices. Front-of-the house staff members are the ones regularly handling cash each day. It's critical to regularly engage with these employees to assess their skills and improve any knowledge. You should also hold frequent meetings to train workers on good cash management skills and how to prevent loss or fraud. On a side note, engaged employees are also less likely to steal or be careless with money. Find ways to improve employee morale and lower the turnover rate to prevent any poor cash handling practices.

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4. Keep a Schedule

A good schedule will always optimize cash handling practices. For example, managers may schedule a cash register balance at the end of each shift. They could also make deposits each Wednesday and Friday.

Keeping a schedule goes hand in hand with effective organization skills. It also shows employees what is expected of them and that there aren't ways to cut corners. Setting a schedule will prevent managers from getting overwhelmed with overflowing cash rooms.

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5. Don't Keep Too Much Cash On-Site

In the old days, managers kept a lot of petty cash and cash receipts on site because they didn't have access to automated solutions. When there is too much cash on site, there is always the chance it could get lost or stolen. Set a limit on how much money is allowed in the store and ensure managers know to make frequent deposits at financial institutions. Another method to minimize the amount of cash on-site is to utilize a currency recycler. This is a machine that validates any incoming cash and stores it safely in a vault. Minimizing the amount of cash on site will help to streamline the handling process.

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6. Make Sure to Hire Enough People

When there is plenty of staff on hand to take orders and process transactions, there's a greater ability to achieve and enforce cash handling policies. It takes a lot of managers and high performers to maintain security, oversee new hires, and enforce any rules. While it's never a good idea to overhire, hiring just the right number of people will make cash handling easier. Shortages lead to more incidents of loss, theft, disorganization, and non-enforcement.

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7. Invest in Technology

Finally, there's no better way to optimize cash handling than investing in an optimized POS system. POS software streamlines all restaurant tasks and handles all sales data. Every transaction is securely stored in one centralized location, so there's very little ability to commit fraud or theft. Managers know exactly who is on schedule and when, as well as who is handling the cash drawer. If there is a discrepancy, they can simply review the data and see who to talk to about it.

There's also less chance for human error with any computerized system. Fewer errors mean fewer discrepancies and a better cash handling process. Better handling procedures due to technology leads to more money, happier employees, and a better reputation.

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