A large variety of businesses today deal with cash everyday.
Although electronic money is becoming increasingly popular, cash in circulation continues to grow. The Bank West Cash report of 2009 suggests that there is a growth of 7% in cash in circulation 12 months prior to the release of the report.
But due to a number of reasons, cash-related crimes are also increasing.
Keeping your cash safe in this day and age has become increasingly difficult. The study also shows that various cash related thefts and robberies, both internal and external, cost Australian businesses about 3% of their total revenue.
Our biggest disadvantage is that we think these things only happen to other people. This often results in poor or no preparation in the event of a critical incident.
While it is true that one can never be prepared for every contingency the future may hold, there are tips that you can follow to ensure that the risk is minimum.
No matter how big or small the amount is, all your cash movements and transactions should be properly documented. Weather you are a small or medium sized business owner, the importance of procedures cannot be undermined.
Have systems and procedures in place that ensure you know exactly where your money is.
Training your employees to follow a procedure also gives them an understanding of expected standards and drives out any feelings of greed in them.
Having the aforementioned systems is also an advantage from an accounting point of view and should help you quantify your business better.
2. Maintain Custody.
In case there is a discrepancy in the cash, it is very difficult to pinpoint the person responsible or time frame, if numerous people have access to your register or safe.
Make sure only a few people, for example, shift managers, have access to the cash. Also, as mentioned earlier, have a system in place where they balance and sign for the contents before and after the shift.
Not only would this practice ensure swift investigation in case of a discrepancy, but the employees would also be wary of the fact that they are solely responsible and answerable for all the cash in their custody.
3. Update your security system.
This point couldn’t have been more obvious. An updated, functional and state-of-the art security system is something that will not only ensure safety, it also ensures that criminals stop seeing your business as an easy target.
Install CCTV cameras, with prompt signs that say something like ‘YOU ARE UNDER CCTV SURVEILLANCE’ , maintain a clear line of sight at the point of sales, do detailed background checks of all your employees, keep the safe locked and the access restricted, the list goes on.
Every business has different needs, especially when it comes to security. So seek advice from a security expert or your local police contact and install and maintain an extensive and effective security system today.
4. Keep as less cash as possible.
The reason behind keeping minimum cash at your store/restaurant/warehouse is obvious. Less cash means minimum losses in case of theft, and it also means that there is not a big red target on your back.
Keeping as little cash as possible makes perfect business sense.
As your business changes, your requirements of cash will also vary, both in terms of total cash and in terms of change that you require.
Maintaining a minimum amount of cash will not only help you cope easily with these changes, but will substantially reduce your exposure to risk, should a critical incident take place.
5. Cash in Transit.
Whenever you move your cash, whether it’s to or from the bank, do it discreetly and randomly.
A better alternative is to use cash in transit services. If you do your research right and find the right agency, you can find one that not only provides the safest way to transport cash, but also provides insurance. You absolutely do not need to take your business to someone who cannot guarantee total risk protection.
Ensure that you employ an agency that is flexible, prompt, easy to reach, punctual and uses the latest technology in cash logistics.
In conclusion, if you’re not already actively working on safeguarding your cash, you might be losing more money that you fathom. So follow these simple yet effective tips and enjoy the peace and serenity of knowing your money is safe.
If you have any more useful tips, share them and help others out!