Cash Management is the Next New Thing for Retailers
Learn How Retailers are Leveraging Advanced Cash Management Capabilities to Save Money and Streamline Operations
Cash Management. While it sounds like a complicated and technical subject, all retailers that accept cash as a form of payment do it probably every day.
At its core, cash management begins with having a set amount of cash in the till at the beginning of every day and ends with removing the excess after a day of business and depositing it into the bank. That’s it. Or, at least, that’s one end of the cash management spectrum.
Because cash management is different for every retailer, it is best seen as a spectrum where on one side it is as simple as the example above, and on the other, it becomes a more complicated and technical task, with software integrations, deliberate processes in-store associates take, reporting mechanisms for the financial and operations departments, and much more.
Where a retailer lands on this spectrum is entirely up to them depending on many factors but most importantly, how cash oriented the business is.
Why Move Through the Spectrum?
As discussed previously, every merchant that sells a tangible product in exchange for bank notes has some sort of cash management process. But not all cash processes are the same. A retailer of expensive goods such as designer handbags or luxury watches, for example, would be less cash centric than a grocer or a shoe retailer so their cash management process would be completely different. The luxury retailer may not be as worried about the process as they don’t always have cash on hand, but the specialty shoe retailer may want to move further along the cash management spectrum. They could do this by simply establishing a strict guideline for the end of day closing process or even implementing a more extensive cash management service for a variety of reasons. Some of these reasons could include security, shrinkage, cost management, and control/visibility.
Employee safety should always be at the forefront of store policy. Having a system in place such as DTS Connex’s DTS Cash Suite, a cash management software where store employees don’t have to leave a store to make a deposit. Instead, they use a series of secure envelopes that can be sent out via a mail carrier service to a centralized bank. Using a cash management service minimizes any additional risk employees must take to make a deposit at the end of the night.
If you’re in any aspect of retail, you know that shrinkage is inevitable. Whether it is cashier error, administrative error, or dishonest employees, more often than not, the physical cash deposited into the bank is different than the amount expected. Usually, it is short. With a cash management system that uses automatic bill counting and strict procedures, shrinkage is minimized.
One might think that the costs of taking a deposit to the bank only include the gas or time used, but there is much more to it than that. Depending on the bank, there could be a fee for cash deposits ranging from a few cents to 5-10 dollars. You can imagine the type of cost incurred when a retailer with hundreds of stores that make deposits every night to different banks. Not to mention the time and costs of counting, validating, and preparing the cash to be deposited. Using a cash management service can help alleviate these costs by using one centralized bank that deposits are sent to as well as consolidating daily deposits into deposits that are sent out every few days. Also, as explained above, shrinkage is also minimized which reduces costs as well.
Control & Visibility
Lastly, but maybe most importantly, having a cash management process can deal a lot of visibility and control over everyday store operations. For example, with the help of cash management software, if there are any discrepancies in the deposits management, financial, and store operations departments can all pinpoint exactly where the problem came from and deploy policies to prevent it from happening again. In addition, with a set process and guidelines on when to send in consolidated bank deposits, fiscal reporting is more accurate and up to date.
With new country-wide problems such as coin shortages taking place, it is important for retailers to get a good handle on their cash as to not be left in a severe shortfall. Of course, it is up to the retailer to choose where on the cash management spectrum they fall on depending on the issues described above. Not all retailers are the same so cash management must be as fluid as retailers are different.
Accuvia Software Group and DTS Connex
Accuvia Software Group offers an advanced point-of-sale solution and a cloud-based central office platform for retailers. ASG is partnering with DTS Connex to provide a more advanced Cash Management offering for our retail clients.
Our integration with DTS offers retailers a unified cash management solution integrated directly into our pre-existing store end of day closing process. By working together with the DTS Connex Partner API, the store users never need to leave their POS environment to perform their daily bank deposit functions, streamlining their deposit creation process and training.
To learn more and see a video of our solution and the case study on how Accuvia Software Group integrated with DTS Connex in order to solve many of these issues for one of our retailers use the link below.