5 Tips for Cash control and management in small business
There are different types of businesses like Restaurants, Fast-Food Restaurants, Hotels, Gas-Stations & Truck-Stops and many more. Every business needs different types of cash control and management & each one has unique ways to manage it depending on business operations.
In Restaurants significant cash is generated but in Gas-Station and Truck-Stop percent of cash revenue is generally maximum as compare to other businesses. There might be the opposite situation in Hotels as the percent of cash revenue is less because mostly customers prefer credit or online booking.
Hence, significant cash revenue needs effective control and management. So, in this blog I’m going to tell you some tips for cash control and management.
1. Accurate & Timely accounting –
The cash should be accurately and timely deposited in the bank account. Businesses where there is significant cash revenue, there is a high risk of theft and to avoid that daily or within reasonable timelines cash should be accounted in bank by authorized or appointed person. This is the most effective cash control.
2. Reconciliation by POS –
The accurate recording of cash and sales needs to be done on a timely manner to ensure there are no cash shortages/over (Both should be dealt with skepticism). It will help you to avoid accounting errors also in fraud identification and proper cash flow management.
3. Paid outs management –
Paid outs happen when cashier gives cash for other business expenses at the business location. The paid outs transactions should be allowed to handle by authorized person only within the authority of limits of cash expenses that can be done at business location. It must be supported by proper bill/Invoice. Approval process should be there before doing any large expenses at the business location in cash.
4. Use cash drop Safe –
It is another essential control for businesses who generate significant amount of cash. Dropping a set amount of cash in drop safe after a specific amount of threshold in drawer or based on timeline could save your money from theft and gun point robberies. If your business is generating significant cash on daily basis then you can deposit particular amount in drop safe which suits reasonable to your business based on time or amount.
For better security use digital cash drop safe so that you can put security key to it and that should be shared to authorized person only. So that only you and that person can access the drop safe box for bank deposits.
5. Budgeting & forecasting –
Cash flow budgeting is a very essential part of Budgeting and forecasting process in any company to meet all expenditures.
Forecasting allows you to use accumulated historical data to predict financial outcomes for future. Forecasting aids in making of business decision and in understanding their impact before you implement them.
If you execute above mentioned tips for your business it will surely help in control & management of cash. We can help you to manage and get you ahead in this competitive business market with the help of many more tools, feel free to contact us at 317-851 0936 or visit here for any help.