4 Cash Management Best Practices For Hospitality
Do you know which cash management devices are underfilled (or overfilled) right this second? Understand if there is enough money to trade? Can you identify whether you have the right quantities and denominations available?
With cash holdings in pubs and clubs numbering into the hundreds of thousands of dollars, it’s crucial for managers to get complete visibility of each venue’s cash position at any moment in time. Complying with regulations, mitigating security risks, increasing productivity and efficiency and minimising human error are all challenges the modern venue manager faces in this arena.
In this post, we’ll share some of the missed opportunities we most commonly see in venues when it comes to cash management. We’ll also be sharing the cash management best practices and solutions that are key to your venue’s success and longevity in today’s competitive market.
TIGHT PROCESSES AND PROCEDURES
What not to do:
- Take a relaxed approach to cash management processes. Let things play out without any proper policies around who is responsible for what and how cash should be handled.
- Not worry about upholding proper cash handling procedures and continually make exceptions when things are done incorrectly.
What to do instead:
- Firm policies, procedures and processes are the foundation of an effective cash management system. Not only will they spell out exactly how things are to be done, but they are also referencing material for staff when things go awry.
- Strict protocols around proper cash handling processes help your staff to know where they stand and help to prevent mistakes, whether innocent or malicious, from occurring.
STAFF TRAINING
What not to do:
- Allow your staff to decide how to best do their job and refrain from giving them any training in cash management procedures. Let them figure it out on their own.
- Give some on-the-job training, but don’t coach, reward correct behaviours, or deliver interim training when things go off-piste.
What to do instead:
- While your policies and procedures are your foundation, without properly training your staff in them, your metaphorical house will fall around your ankles.
- Onboard and train your employees in all cash handling processes related to their jobs. Don’t forget to keep their training up to date and to make adjustments when people change roles or procedures change.
THE RIGHT EQUIPMENT AND TECH
What not to do:
- Use outdated manual processes to handle your venue’s cash.
- Keep large amounts of cash in tills, unsecured in the back office or in insufficiently rated safes.
What to do instead:
- Policies, processes and training are all excellent ways to ensure proper cash management. But human error will still remain a factor.
- Eliminate human error while also mitigating security risks by investing in technology like intelligent safes, cash redemption terminals and cash recyclers. Not only will these machines automate previously time-consuming manual tasks but they also boost security by holding cash in secure safes within.
VISIBILITY AND TRACKING
What not to do:
- Keep track of cash holdings using multiple systems, spreadsheets and manual processes.
What to do instead:
- Get visibility over your venue’s cash holdings with cloud-based software which can be securely accessed at any time from any device. If your cash management devices are linked, you will have oversight across the entire cash holdings in your venue and be able to monitor comings and goings in detail. Look for a system that provides you with in-depth, customisable reporting so you can track performance and trends.
- Next on the horizon in this area is your cash management machines linking with POS systems. Watch this space!
Interested in what else Australia’s top pubs and clubs are doing to stay in front of the eight ball? Our free ebook Pubs and Clubs of the Future is full of real-life examples of how clever venues are using technology to boost profits and increase productivity.
