Businesses that deal with high volumes of cash, like banks and retail companies, face a number of serious problems. There’s the inherent security risks that come with having so much cash on hand, as well as the complexities of cash management accounting. But while new software and devices have provided solutions for cash management accounting, not all problems are so easily remedied.
So what’s the number one problem in cash management today?
It’s the same problem that has plagued business owners for thousands of years, ever since human beings first started fashioning metal coins. Not even the greatest cash management accounting experts in the world are immune. So what is it?
And yes, we’re talking about you, no matter how much of a perfectionist you may be. Because when it comes to the most common cash management problems and solutions, it’s all about good old fashioned human error. Even a simple accounting mistake can quickly snowball into a full blown disaster. That’s why virtually every company that deals with cash on a daily basis relies on the latest technology and cash management systems.
Let’s give a practical example:
Cash counters were first introduced in England in the 1980s, and for countless businesses they’ve proved to be a godsend. When humans have to count coins and cash by hand, it’s a time consuming process highly prone to error. In fact, most people will count cash two or three times to double and triple check their math.
On the other hand, cash counters can handle high volumes of paper money with 100% accuracy, and in a fraction of the time it would take a human.
What other cash management systems are available today?
- Electronic cheques scanners allow businesses and banks to electronically deposit checks instantly.
- Coin counter and sorter machines are exactly what they sound like. As with cash counters, they aren’t just 100% accurate, but they’re faster too.
- In days gone by, when a cashier’s register reached a certain dollar amount, he or she would have to deposit bills into the vault. When their register ran low, they would have to find a manager to withdraw bills from the vault. A cash recycling machine automates this process, which ensures employees always have the optimal amount of cash on hand.
- For as long as we’ve been using money, coins, and I-Owe-You’s as a form of payment, counterfeiters have been taking advantage of the system. Fortunately, the latest counterfeit detector machines eliminate this threat.
While this list covers some of the most common cash management problems and solutions caused by human error, it’s important to remember that human error isn’t the only threat to cash-reliant businesses. Human greed and malice are constant dangers as well.
But with the right cash management accounting solutions, you can minimize your exposure to these serious problems.