6 reasons why manual cash handling is hurting retailers

Manual cash handling is a costly process for retailers with many drawbacks. Here are the six major disadvantages.

If retailers want to reduce the cost of cash handling and improve operational efficiency, then cash automation is the answer.

Up to 95% of the time staff spend on manual cash handling can be saved with cash automation solutions.

6 disadvantages of manual cash handling for retailers

Cash counting
Cash differences
Staff involvement
Internal theft and fraud
Store robberies
Lack of control

1. Cash counting

Manually counting, sorting and balancing the day's takings is an extremely time-consuming and labour-intensive low-value job which often involves several members of staff.

This makes the whole cash handling process an expensive one for retailers.

2. Cash differences

Having cashiers count cash manually increases the risk of cash differences which are difficult and costly to track.

Every time a cashier submits a cash total which does not match the amount registered by the till, it takes a lot of time and resource to correct the error.

3. Staff involvement

Where cash is counted manually, multiple members of staff are often involved, both from the front and back office.

And due to the frequency of cash counting errors, it is not uncommon for staff to have to recount money or for senior managers to have to get involved as an extra pair of eyes.

“Administration alone represents 72% of cash management costs. This includes the time spent on till reconciliation.”

4. Internal theft and fraud

Of the money retailers lose every year due to shrinkage, around one third of that is estimated to come from internal theft. In shops where cash is exposed at the point of sale and all the way to the back office, the risk of staff taking cash for themselves increases.

As well as the direct costs, manual handling of cash can lead to serious trust issues and a high rate of employee turnover.

5. Store robberies

External theft is another major cause of shrinkage and is made far more likely in stores where cash is exposed and has to be carried by a member of staff from the till to the back office.

The security risk which this creates impacts on the retention of customers and staff.

6. Lack of control

Retail managers have no online overview of in-store cash levels so cash handling becomes an extremely inefficient process. Not being able to automatically recycle cash at the point of sale also impacts on cash flow efficiency.

Automated cash handling for retail

If retailers want to reduce the cost of cash handling and improve operational efficiency, then cash automation is the answer.

Up to 95% of the time staff spend on manual cash handling can be saved with cash automation solutions.

Options include systems for cash deposit, cash recycling and closed cash handling.

With optimised cash handling procedures and less back-office administration, staff focus on the customer, not the cash.

Advantages include the elimination of cash differences, automatic reconciliation and the refocusing of resources onto more value-driven activities.

And since cash is no longer exposed or handled manually, stores are much safer, and shrinkage is reduced.

Sesami Solution Experts

The team at Sesami.io consists of innovative and skilled professionals with deep expertise in industry trends and technical knowledge. They have a proven track record of guiding businesses through numerous technology cycles, especially in the retail and financial sectors. Their work involves creating cutting-edge solutions that set new standards for how companies leverage digital technology. Renowned for their analytical skills and strategic insights, the team has led numerous transformative projects, positioning themselves as key influencers in the technology field. Their unwavering commitment to excellence and their drive to expand the possibilities of technology makes them trusted partners in managing the complexities of today's digital world.

Cash Ecosystem