The traditional cash cycle was dominated by banks who took the bulk of the responsibility for cash management processes. But all that has changed.
In many parts of the world, central banks and retail banks have been pulling back from operational activities within the cash cycle.
While the degree of bank involvement may vary from country to country, the trend is for these operational services to be pushed further down into the cycle.
More and more cash is being recirculated away from banks and often in increasingly smaller cycles, such as inside an individual store. This has led to retailers having to dedicate more time, resources and money to managing cash.
Manual Cash Handling is Hurting Retailers
Taking care of cash processes occupies shop staff before the start of business, during the day and after opening hours with tasks such as float preparation, till skimming and reconciliation.
This is hurting retailers for a number of reasons:
- There is a high risk of cash differences
- Cash-counting errors are hard and time-consuming to track
- There is a high level of staff and managerial involvement
- The risk of internal theft and in-store robbery is greater
How to Make Cash Management More Efficient
There are multiple types of cost for retailers involved with processing cash but these can be reduced.
Automated cash management cuts the time spent working with cash, lessens the number of cash-related procedures and limits the number of people required to be involved in cash processes.
Closed cash management, for example, is a method of combining front and back office systems which removes the necessity for cash to be handled manually by shop staff.
As well as the obvious security benefits, advantages include the elimination of cash differences, automatic reconciliation and the refocusing of resources on more value-driven activities.
This PDF Guide explains how automating cash processes will cut outgoings related to handling cash within retail.