One of the most important issues that is often overlooked when starting a small business or temporary shop is managing the influx of cash. Of course, prices and investment capital is determined and projected, but when it comes to actually handling the physical bills and coins, some think that a cash box is sufficient. However, if you intend to have accurate records of your sales, then there are some things that you’ll need to consider before setting up shop proper.
What is Cash Handling?
Cash handling is any physical act that involves accepting, counting, tracking, and dispensing cash as a part of a business operation. Regardless of the type of business that you run, you will be exchanging goods or services for money, and that requires some amount of cash handling. This means that it is paramount to develop a standardized policy for all of the employees that will be handling cash in your business. It may sound trivial, but it important to train employees to quickly count cash and deliver change. Some tools to minimize loss during these transactions are calculators and automatic cash registers.
If your operation is expected to have a more constant stream of customers, accepting cash only may not be adequate or efficient to your business model. In this scenario, it may be beneficial to enlist the aid of merchant services. For a small fee, a third party will allow your business to accept payments via credit card. Most merchant services will even transfer funds and make necessary deductions straight from your bank account for efficiency.
Cash loss is a serious issue for every business, so it is important to know who handles the cash for your business every step of the way. From the second that money is received to the when it is deposited in the bank or put in a safe, it is important to know whose hands the cash passes to. If there is any point where cash is not specifically somebody’s responsibility, then nobody is liable if it is lost.
Cash Handling and Accounting Procedures
Not only is it important to keep track of your cash, you should also keep detailed records of your transactions. This means having tickets, receipts, or cash register tapes for everything that is sold. Diligence in record keeping will help you keep track of losses and see how your business is performing in the long run. Use filing cabinets to organize your receipts each month and use a spreadsheet program to track the data and see if you are reaching your projected goals.