Even with modern POS (Point-of-Sale) systems, you will still need a procedure to account for your store’s cash receipts. You might be wondering why these internal controls are needed? Well, they are needed to prevent mishandling of money and to protect assets against loss and theft.
Not only do these internal controls promote working efficiency, but they also ensure consistent accounting records that will be needed while filing your taxes. You might not know this, but one of the most common causes of loss in your storage or shrinkage is through mishandling of cash.
Most businesses have no proper procedures or controls for handling the cash drawer, and this is why they fail in the initial years of their journey. We’re about the mentioned some of the tried and tested ways that will allow you to effectively manage your cash drawer.
People often believe “fewer cash drawers, less problems,” but that’s not true. The more people you have operating your cash drawer at once, the more difficult it is to identify who is responsible for a discrepancy.
When you have one person who is responsible for operating each cash drawer, then you can easily increase accountability. Yes, you might be inclined to trust your staff, and you should because employees should be trusted. But then again, you are running a business, and employee is a reality. Therefore, it makes complete sense to hold employees accountable when it comes to dealing with cash. You will have a precise count at the end of every shit and fewer problems to deal with.
A good day begins with a cash count
Many people believe that you should count cash at the end of each day, but that isn’t true. It is important that you start every day knowing what you already have. It is important to have a healthy base of cash in your register at the beginning of every day to make sure that you have enough to cover your daily operations. This is also another balancing act that will turn out to be fruitful in the long run.
Too little in the drawer might leave you out of cash in mid-shift, causing hold-ups and other problems. Too much might increase the chances of employee theft.
Deposit cash throughout shifts
During a busy shift, it’s normal for the cash drawer to become a little disorganized, but it’s nothing that a little tidying can’t fix. Be sure to regularly organize the cash drawer as it will keep the drawer healthy when it’s time for the last count of the day.
If you’re going through a slow period, then it’s the perfect time to deposit cash, so you’ll have enough on hand when the business starts to pick up the pace. Be sure to remove the difference from your initial morning count, otherwise, you’ll end up counting twice. If you’re having trouble counting the cash alone, then you can also include another person as this will offer better accuracy and more accountability.
Don’t forget to pull the report for every drawer afterward
Whether you balance your cash drawer at the end of each shift or at the end of every day, you’ll need to have precise data on-hand data to compare your counts with. What you should do is pull your point of sale report whenever you close out the cash drawer. Move to a discrete location in the store if you plan to count the money. You’ll need to check the counts thoroughly; therefore, be sure to give yourself enough time.
Identify and solve discrepancies
If you happen to find a huge shortfall, then you must review the data from your POS report. Most discrepancies are caused by human error and don’t have criminal intent. Look for overages and shortages. Overages simply mean customers were likely shortchanged, which is something you’ll want to look into. Other discrepancies might mean cash has been stolen, lost, or incorrectly counted.
To resolve such issues, you need to conduct a recount for all your checks, cash, coupons, along credit card receipts. If you still come up short, then double-check your drawer for missing receipts. Review all the POS transactions to see if you can spot anything that could be missing, like receipts.
How can POS Highway Help
Although every store is unique, balancing cash drawer is something that is common among all stores. POS Highway offers the tools you need to make cash drawer management as simple and painless as possible. For more information, contact us, and we’ll help you take your business to the next level.