Retails Operation - Chapter 6 Cash Management (4).pptx

Retail Operations CASH MANAGEMENT Learning Outcomes; 1. Understanding the cash handling and sales policy incurred in daily retail operations. 2. Identify the procedures incurred in sales transaction. CASH MANAGEMENT Cash Management The Cash Management is concerned with the c...

Retail Operations CASH MANAGEMENT Learning Outcomes; 1. Understanding the cash handling and sales policy incurred in daily retail operations. 2. Identify the procedures incurred in sales transaction. CASH MANAGEMENT Cash Management The Cash Management is concerned with the collection, disbursement and the management of cash in such a way that firm's liquidity is maintained. Thus, it tries to achieve this cycle at a minimum cost along with the liquidity and control. CASH MANAGEMENT CASH MANAGEMENT Objective of Cash Management The main factors that include the cash management are the company's level of liquidity, managing its cash balances, margins and timing of activity. The objective of cash management is a broader term that relates to the collection, concentration, and disbursement of cash. CASH MANAGEMENT The importance of Cash Management Reduce losses, increased accuracy when counting cash insures no miscounts and all discrepancies are detected. Retail Cash Management Solutions that eliminate errors and discrepancies and related costs as well as help your managers spend more time delighting customers and less time in the back room counting cash. CASH MANAGEMENT What is cash management in retail? By definition, "cash handling" refers to the process of receiving and giving money in a business. In a bank, this includes teller transactions and ATMs. In retail, cash handling ranges from the point of sale to the behind-the-scenes money management during the day CASH MANAGEMENT Cash Handling in Retail Ten-step process to improve cash handling 1. Organization Is Key to Effective Cash Handling. 2. Keep an Eye on Your Cash. 3. Enforce Policies and Procedures. 4. Keep Less Cash on Site. 5. Engage Your Staff. 6. Maintain a Schedule. 7. Have Enough Staff. 8. Ask for Help. 9. Invest in Technology 10.Keep Improving CASH MANAGEMENT Cash Management System A cash management system is an automated solution designed to help you manage your cash handling from end to end. Most cash management systems are designed to help you from the point of intake to reconciliation. They streamline the process, which has many benefits for your business CASH MANAGEMENT Cash Management System CASH MANAGEMENT Cash Register Electronic device used to calculate financial transactions. Most cash registers consist of a keyboard that is used to input entries, a scanner of some sort, a drawer that is used to hold cash, and a printing device for receipts CASH MANAGEMENT CASH MANAGEMENT Difference Between Cash Register and Point Of Sales System (POS) A cash register is a machine that records sales transactions, gives change and holds money. A POS system is a computerized system that handles financial transactions, tracks inventory, and records many types of business data. CASH MANAGEMENT CASH MANAGEMENT Handling Customer’s Payment Process Type of Payment 1. Cash (counting, note authenticity, safe storage and cash receipt) 2. Credit and debit cards (chip and pin machines, and card readers) 3. Payment via Apps 4. Gift vouchers (checking amount and authenticity), safe storage, cannot be exchanged for cash and expiry date checks. CASH MANAGEMENT Handling Tills and Receipts 1. Receipts By printing off receipts of every transaction as it occurs, you can have proof that the customer has paid; this protects yourself and the customer. Your retail business should ensure that all information relating to the transaction is on the receipt. This includes the date, time, products/services, amount paid, payment method, and a receipt identifier number. 2. Authorised staff It is important that only specific staff have the authority to deal with bigger lodgements and withdrawals. This will help reduce the risk of internal theft. Other staff members that have access to smaller amounts of cash should be trained in cash handling procedures. 3. Security As a retail business you will have at least one or more tills. To ensure safe cash handling, cash and floats should be kept in these tills or locked cash box. It is important to ensure regular removal of high-value notes from tills and keep them in a safer area. You should not allow large sums of money to accumulate in your till as in the case of a robbery you will lose it all. When removing these large sums you should be careful CASH not to do soMANAGEMENT when there are customers on your retail business premises and not to have regular times when you do this process. 4. Till reports At the end of the day your till/s should be emptied and ensure till receipts balance with the cash you received. 5. Petty cash Your small business may keep petty cash to cover any small expenses. It is important for good cash handling that you only use petty cash to cover these costs, not cash from the till as it will mean at the end of the day your till receipts won’t match the cash in your till. You should not have large amounts of petty cash on your premises and you should have one person responsible for handling petty cash. CASH MANAGEMENT CASH MANAGEMENT Merchandise Reservation The retailers can offers merchandise reservation in order to enhance the customer service. The reservation can be made by; Record the reservation details. State policies on how long the reservation will be held State clearly to the customer either deposit is required or not. Customer details such as name, phone number should be attached to the reserved merchandise. Kept the reserved merchandise in designated area and informed the staffs on duties. Call the customer if the reservation is overdue. The merchandise will be put up for a sale if the reservation is cancelled.. CASH MANAGEMENT Handling Customer’s Refund and Exchange What is returned and refund policy In retail, returning is the process of a customer taking previously purchased merchandise back to the retailer, and in turn, receiving a cash refund, exchange for another item (identical or different), or a store credit. Sample of Good Refund Policy “If you are not 100% satisfied with your purchase, you can return the product and get a full refund or exchange the product for another one, be it similar or not. You can return a product for up to 30 days from the date you purchased it.” CASH MANAGEMENT  Thank You CASH MANAGEMENT