The Advantages Of Automating Cash Handling

Cash handling, checking in/out till drawers, and reconciling cash to the POS system remains a labor-intensive, inefficient process for most retailers. Retailers use varying methods to handle both coins and notes. Some retailers employ more than four people per shift who are dedicated to the cash handling process for a single store. Multiple people, including the sales clerk and cash room employees, will count opening and closing tills. On average, each clerk spends 18 minutes on the cash handling process.

Solutions in the market today consist of note validators and recyclers. Notes are deposited into a validator, counted, and prepared for pickup by an armored car service. Also, a note recycler makes notes available to be redispensed for use in the store. The strongest argument for these systems is that notes can be accounted for and stored in a secure area while waiting to be sent to the bank or reused.  

Despite the benefits, there are a few problems with these systems:

• Coins are completely ignored by these solutions, and coins take a long time to count manually. Also, counterfeit coins are rarely identified.  
• Even if a validator or recycler can report deposited amounts, reconciliation with the POS system is not possible.  
• Any solution that requires manual counting is subject to shrink.

Integrate Money Recyclers With Your POS
Retailers can reach the "holy grail" of cash handling by automating the cash room. They can do this by dispensing and checking in till drawers, as well as reconciling end-of-shift cash reports. This process is best accomplished by integrating both note and coin recyclers integrated with any POS system.

Integrating note/coin recyclers with the POS eliminates coin handling, as coins are dispensed directly into a sales clerk's till drawer at the start of a shift. When closing a till, coins are dumped into the recycler, which counts, verifies, and prepares coins for reuse. Notes and coins are dispensed simultaneously to fill the till drawers at the beginning of shifts. Next, the money is counted, verified, and staged in high-capacity cassettes to be recycled for future use or bank deposit. The profitability enhancements provided by cash handling automation are:

1. A significant reduction in cash room workforce since& all manual labor has been eliminated
a. no manual counting of notes and coins when checking in/out till drawers
b. no manual reconciliation of cash with the POS system
c. no manual preparation of bank deposits

2. Cash shrink is greatly reduced since the system accounts for all monies dispensed and dropped on a clerk-by-clerk, transaction-by-transaction basis.

3. Management reports are produced automatically and instantly.

4. A significant reduction of armored car-related costs.
a. Cash and coin are recycled, thus reducing the number of required visits.
b. Recycling cash and coin reduces float in every store.
c. Bags of coins are used instead of rolled coins.
     i. Bags of coins are less expensive than rolls of coins.
    ii. Rerolling of coins is eliminated.

A "revolution" of the cash room is underway. Benefits of a fully automated cash room are impossible to ignore, especially as retailers continue to seek ways to improve efficiency and profitability.