Certain types of retail business deal heavily with cash transactions, such as restaurants, coffee shops, bars, and convenience stores. Many of these types of businesses are open late and have multiple shift changes throughout the day. These facts make it very important for retailers to develop ways to keep cash secure while in the store and while going to the bank.
Here is some information about how retailers can keep their cash secure and maintain better records of cash transactions for business.
Before hiring an employee that will be entrusted to handle cash, perform thorough fingerprint and background checks, employment history verification, and references checks. In some businesses, such as restaurants, the cash reserve is often under the control of the manger or owner. However, there may be multiple cash registers at the front of the store, at drive-through locations, and a drop safe in a back office.
It is a wise idea to have cashiers turn in their drawers and balance the drawers against sales data. Once all cash received is reconciled with the cashiers, the manager can take the cash to the bank for deposit. Consider separating cash handling duties to different employees so that no one person has complete control over transactions.
The transfer of cash from a store to the bank is a process that should never be taken lightly. Retail managers or owners should place cash in a bag that is properly labeled, secure, and tamper-evident. It is also necessary to fill out a deposit slip that lists the amount of cash being deposited, as well as other key data.
As long the deposit is made before the bank’s daily cut-off time, the funds will show on the bank statement and a deposit discrepancy can be avoided. Keep in mind that banks may charge fees for change fund orders.
If a customer makes a purchase in cash, he or she will expect to receive cash back when making a return. However, customer returns and refund laws vary by state.
In terms of accounting, retailers must provide a receivable to acknowledge the asset that results from a reimbursement being received. This is common when dealing with the return of goods.
Cash receipts are accounted for by debiting cash on a bank ledger to show the increase in the asset. Cash receipt transactions are also provided when a business receives a loan from a bank or when a capital contribution is received from shareholders, for example. On the other hand, cash payments account for a decrease in the asset, including situations where a retailer purchases inventory and equipment or cash is drawn by the owner.
At Superior Bag, we specialize in secure and reliable retail bags for storing and transporting currency. These industry-specific bags have detailed labels to establish a chain of custody for cash received, returned, and deposited. When you itemize the cash amount, total deposit amount, date, and the cash handler’s identity on our bag labels, you reduce your business’ risk of fraud and financial loss.Contact us today at 800-522-1236 or via online form to ask any questions about our retail bags or request a sample. Back to Blog