5 Classic Cash Handling Mistakes to Avoid

Having a discussion about handling money can be a bit of a taboo topic, and yet cash is still important and still something really necessary to all sorts of people, from company or store owners to everyday individuals. It can be easy to make a whole range of mistakes when handling cash, but here are five common errors that you can work to avoid.

1.Not Using Technology For Cash Counting

The analog nature of cash seems to be antithetical to the more dominant form of digital money flow. But technology does, and should, come into cash handling. When the contents of the till don’t match what should be there that can require some counting and many companies still do it all by hand, which is a mistake. Partly, there’s no accounting for human error, which is a major problem and actually far more difficult to combat than you would think. Secondly, it can be a huge time drag, which is a problem for most retail businesses since your staff is a massive cost to you already and usually there is a lot to be done already, without sitting around counting cash in an ineffective and error-prone manner.

2.Having Too Much Cash On You

If you run a business that accepts cash as a form of payment, and you aren’t vigilant enough about how much money you accept before intervening you can run into some serious problems. “Not only are you going to be inviting more crime and robbery, but you also have the simple issue of disorganization and chaos to deal with”, says Grant McKinnon, financial writer at Grade on fire and Top Canadian writers. Cash should be stored, or put in a bank as quickly as possible, minimizing the aforementioned risks. If you take in huge volumes of cash each day, you may need to put in a safe to have some on-site storage for your earnings.

3.Relying On Manual Counterfeiting Checks

It is so common, even today, to pay with a large bill, perhaps one fresh from a bank withdrawal and have it given a once over by a half-trained member of staff behind the till. It is quite remarkable that in this day and age it is so ubiquitous amongst retail stores and the like. Counterfeiting advances constantly with many counterfeit notes passing the sloppy and informal till-side test. Invest in a counterfeit detector to ensure you have 100% confidence that the money you are taking in is legit. This is a one-time investment but it will save you so much time and possibly even money. Counterfeiting is really dangerous and giving counterfeit money to someone can put you in a really bad situation in terms of being arrested or simply being uncomfortable with what happened. Counterfeit checks are a necessity, especially nowadays when counterfeiting is much easier and more available to more people. This can be really dangerous for you. So, this one-time investment can help you save yourself from a lifetime of mistrust and worry.

4.Repeat Counting

To combat the whole host of potential pitfalls involved in doing the needless job of counting money by hand (see point 1.) many employees find themselves counting money twice. The theory is that it somehow makes your result more accurate if it can be confirmed a second time. “The fallacy of double counting cash lies in the psychology of human beings…but essentially comes down to the fact that if you make a mistake once it’s very likely you’ll repeat it”, argues Jean English, a financial consultant at Rated writing and Studentwritingservices. And if you don’t repeat it and you spot a discrepancy, a third count is required at the least, to confirm that you weren’t in error the second time. This is a time-consuming rabbit hole, solved by a cash counter. A cash counter is a helpful necessity, one that can help you save yourself from a ton of problems. Let’s say you want to go somewhere or pay for something big. You would count your money by hand, of course. You can make a mistake and bring a lot less money because you have a perceived amount in your mind and you think you have that much. So, investing in a cash counter is a good idea because it could save you from all of the embarrassment and worry over your money. You will always know exactly how much money you have and you can easily spot your mistakes.

5.Not Having Procedure In Place For Cash Handling

Handling a customer’s cash and running into any sort of problem that requires recounting or an argument over amounts paid is embarrassing for everyone involved and may make a customer decide against remaining a client of your store. It is vital that you have a company-wide procedure in place on how to deal with cash handling and cash-based disputes to ensure that your customers feel protected when having to use the physicalized currency. This is a crucial part of your business. You need a system that can prove that either your employee is wrong or the customer is wrong. However, this isn’t so easy to apply. Customers are often honest and mistakes happen because we are human, but there are also customers that are looking out to trick you or customers that are just forgetful because of old age or illness. So it can often happen that they don’t give you money and then say that they did or something similar. This is where cameras help.

Conclusion

Cash can be tough to deal with. The most important thing is that you are strict and have a good set of guidelines to follow when dealing with it. But you should also investigate upgrading your technology in all departments relating to cash so that technology can take care of a few of those stresses.

 

 

 

Nora Mork

Nora Mork

Nora Mork is a business journalist at Australian reviewer and Academized. She shares her knowledge by speaking at public events and writing posts for magazines and blogs, such as https://writemyaustralia.com/.
Nora Mork

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