Traditionally, cash office management and the reconciliation process have relied on manual procedures, such as counting currency and coin by hand, creating handwritten check deposits, and keying totals into the POS system. Many retailers have used the same cash office procedures for years, with the procedures inconsistently executed from store to store. Chain Store Age talked with Balance Innovations’ Janette Davis about how technology is bringing new efficiencies to cash office management.
What is the biggest mistake retailers make when it comes to cash office management?
One of the most interesting statements we hear from almost all of our customers in the beginning is that they don’t think they have a problem in their cash offices. They are looking at ways to solve a few issues, like managing safes. When we work with retailers, we step back and review the entire cash office and reconciliation process. Retailers see our analysis of their daily processes — till balancing, deposits, check processing, etc. — and realize their current methods aren’t efficient. They are struck by just how much the inefficiency is costing them and how much of it is consuming their day. Many are skeptical that a technology solution can help them solve these issues. After we show them how Balance Innovations can save them up to 60% in labor costs, among many other benefits, they are eager to implement a VeriBalance pilot program in their stores.
What are the drawbacks and benefits of outsourcing cash counting and check processing?
Some retailers choose to outsource cash counting and check processing to save labor hours or to reduce cash touches within the stores. While this may seem to be a more convenient solution, there are many drawbacks — primarily cost. Banks charge exorbitant fees for these services, and you lose the ability to follow up on discrepancies, such as an over/short or a missing check, at the store level on the day they occur. Outsourcing these processes takes the control away from the retailers, and it doesn’t address the store-level issues that prompted outsourcing in the first place.
Reconciling at the store level is more efficient because bookkeepers are able to rectify issues much m