Securing and processing cash is a major responsibility for retailers. Here are 8 reasons why cash handling is costing stores money.
For advice on using automated cash management within retail to bring down expenses, download our PDF guide: How to Reduce the Cost of Cash.
1. The Cost of Holding Cash
Having cash on site – whether it be in tills or in the back office – is a security risk and turns a store into a target for robbers. The cost of holding cash includes the threat felt by customers and staff.
2. The Cost of Mistrust
Employee fraud is a serious problem. Reportedly up to one third of retail shrinkage is a result of staff taking cash for themselves.
A lack of trust typically leads to the creation of costly, labour-intensive processes for checking and double-checking cash.
3. The Cost of Counting Errors
Counting cash manually in the store is a security risk and is prone to inaccuracy. Every error has a cost because it has to be reconciled.
Sometimes a business can spend days trying to reconcile a simple data entry error. In the end chasing that missing €10 could cost €200 in staff time.
4. The Cost of Staff
This cost is not just reflected in the hours employees spend on counting cash but also in the money lost from taking staff away from more value-driven activities.
5. The Cost of Transportation
Getting cash from the customer’s pocket, into the till, and safely to the bank or cash counting centre comes at a price. Cash in transit services can be costly and the cost increases the more often cash is collected.
6. The Cost of Counterfeit Notes
Customers paying with counterfeit notes can be costly to a business over time and cashiers have to spend time checking authenticity to prevent it.
7. The Cost of Trapped Cash
Cash which sits in registers or the back office is unavailable for investment or payment of debts.
8. The Cost of Inefficiency
Read more about how automated and closed cash management reduces costs and improves the efficiency of cash processes.