I would guess by now you have heard the phrase “Cash is King”.  Well…… it is!  This isn’t so much as a cashflow explanation rather how you can actually control cash, protecting it and understanding the best treatment for it.  This blog is very relevant to Pubs, Cafes, Hair Dressers and other businesses that hold and manage cash on a daily basis.  Some of these you may have already thought about but hopefully there may be some that you will find helpful and useful to implement.

  1. Secure the cash whilst onsite –  You need to protect the cash you hold onsite from the temptation of break ins and also other staff.  Invest in a really good fireproof safe and change the combinations and locks regularly.  Don’t keep the keys onsite either if using a traditional lock.
  2. Don’t leave it all up to your Bookkeepers/Accountants –  As a business owner you need take control of your business and should not leave the responsibility up to your bookkeepers and accountants.  It is fine to leave the recording of the transactions, reconciling the bank accounts, providing financial reports to your bookkeepers/accountants but I strongly discourage giving them the responsibility of all the recording of transactions and reporting and counting and banking cash received.  This protects you and the bookkeeper.  I never offer to bank my clients money in fact I have it in my terms and conditions that I refuse to do it.
  3. Separate duties for anyone that handles cash –  You shouldn’t have people who are handling cash everyday be the one who walks to the bank with a deposit book/slip.  With all our best intentions for hiring trustworthy staff stay on the side of caution and separate the duties so the cash is checked and then cross checked.
  4. Cash Procedures and Processes –  Put together a procedure to manage your cash.  If you have processes and procedures in place that are followed and checked then it is easier to see if there are issues or mistakes happening and less opportunities for your team to abuse the “system”.  With the amount of staff turnover in pubs, cafes etc it is best to have procedures to ensure continuity and less chance of having mistakes and abuse of the system.  Speak to your accountants or bookkeepers to come up with some procedures relevant to your business.
    • Keep all cash locked in tills or in cash boxes.
    • Don’t keep large sums of money onsite.
    • Bank daily if possible or every couple of days a least.
    • Cash up the tills everyday/night or even various times during the day, between shits etc.
    • Take the “big” notes out £50, £100 for example out of the tills
    • Try to encourage more debit and credit card transactions keeping cash transactions minimal
    • Change your pass codes or lock and/or combinations regularly
    • Have an office with good security where possible to run the cash counts so not out in the open for customers to view
  5. Petty Cash vs Till Cash –  I think it is a good idea to keep the till cash as money from customer activities and perhaps keep a Petty cash for paying suppliers, deliveries, sundries etc for the day to day running of the pub.  This makes reconciling the till a lot easier daily and keeps all transactions separate which should make tracking the cash much easier to manage.

These are just a few ways that I think would help you manage your cash better in your business.   In order to survive cash flow is really important.  Controlling it and managing it is so important so be vigilant, consistent and strict in managing your processes and procedures around managing your business cash.

If you would like to discuss your current procedures or require some help with your cash management please contact me.

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