How Businesses Can Handle Money Safely
Cash-handling procedures are a fundamental part of any successful business. It’s essential to reduce potential risks that threaten profits or make your business vulnerable to criminal activity, such as cash robberies and fraud. Read on to find out how businesses can handle money safely.
Common Cash Handling Risks
A significant risk factor of cash-handling lies in the small amounts of money that can easily be lost in the gaps when security measures aren’t strict enough. It’s crucial to ensure that your business reduces the cost of theft in the long run. Here are common cash-handling risks to consider:
- Inaccurate paper trails from one person to another.
- Cash registers are incorrectly counted.
- Inconsistencies with cash flow.
- Employees make calculation errors when giving change to customers.
- More than one person has access to the safe.
Safety Tips to Handle Cash in Your Business
Have a Cash Handling Policy
Securing your cash while running a business requires the integration of various approaches. A formal cash-handling policy is the first step to ensure that cash is handled correctly. Training your employees about best practices is essential if your business relies primarily on cash transactions.
In your cash handling policy, consider these key factors:
- How daily transactions are handled.
- The security of any safe on your premises.
- A detailed account of cash transfers.
- Accurate amounts in cash registers at the start and end of the day.
- The supervision of cash transactions.
Consider Digital Transactions
Nowadays, digital transactions are favourable because they offer higher security than cash. There are multiple layers of security measures used to process digital transactions. For instance, verification processes to authenticate transactions require PIN codes and can send biometric data requests for confirmation.
Additionally, there’s a lower risk of loss or theft than cash stored in a safe. Most importantly, digital transactions offer greater flexibility and convenience for consumers. Payments can be made anywhere with a reduced risk of being exposed to being a victim of violent contact crimes.
Store Large Amounts Safely
The safest place to store significant cash is the bank. However, there are times when you need to keep the money in a safe on your premises before it can be transported and deposited. Yet, it’s crucial to note that more significant amounts stored in a safe increase the risk of your business being robbed.
It’s essential to have adequate security measures to improve the safety of the cash and your business. For example, you should consider a drop safe that’s a category three and above. Moreover, you should train your staff and have appropriate procedures in place should you store large amounts of cash on business premises.
Did you know that cash can be stolen even after it has been recorded in your accounts and books? Regularly reviewing transactions can lower the risk of fraud anywhere from the cash register to deposits to the bank. Accurate cash records can help flag seemingly small stolen amounts that become material when calculated.
Cash theft is a common occurrence when running a business. Here are common types of petty theft to be aware of:
- Reversal of specific transactions.
- Stealing money from the cash register.
- Erasing cash register logs.
Maximise Security for Cash Deposits
When transporting cash to the bank, you should consider the risks involved. For example, you can be vulnerable to becoming a robbery victim. Cash robberies are usually at an all-time high around this time of the year, and it’s crucial to enhance security measures when you have to make cash deposits for large amounts of money.
If you run a cash-based business and need to make cash deposits regularly, you should follow these tips:
- Change the days and times of making the trip to the bank.
- Keep your bank visits unknown, even to close friends and family.
- Consider hiring a cash services management company if the amounts are too large to be transported by one person.
- Avoid going to the bank on high-risk days.
- Don’t carry bags that make it easy for criminals to recognise that you are transporting cash.
In summary, the start of the festive season means more sales and more consumers are likely to visit your business. It’s an ideal time to profit and set new business goals. However, it’s also a vulnerable time for business owners since various risks exist.
Knowing practical cash-handling tips can help reduce the likelihood of theft and related crimes. If your business experiences an unfortunate cash robbery or in-store theft these holidays, you can use the iER App to access emergency police units. With over 14,000 emergency service providers, your safety is in our hands.