What is cash tracking?
A cash tracking session refers to the period when a transaction is taking place in your store. It is used to monitor the cash drawer and the specific staff responsible for the transactions, within a specific time range and location. Businesses usually need a point-of-sale system to execute the tasks involved in cash tracking.
Popular terms in cash tracking
- Discrepancy summary: This is an overview of the projected amount and what actually happened in the sessions, at a specific place and within a certain time period. A discrepancy occurs when there is a difference between the forecasted and actual amounts.
- Cash payments summary: This is an overview of all the cash transactions in the selected time range and location.
- Session list: This is a list of all sessions that happen in the selected time period and location, including the start-end time and total discrepancy.
Benefits of cash tracking
Cash tracking is essential for any type of business, ranging from small to bigger ones. By regularly monitoring the cash, they can keep track of their cash flows and adjust expenses timely. Some of the most visible benefits are:
- Ensure sufficient funding: An insufficient funding can hamper the operation of any business. This is because cash might be needed to pay for stakeholders, such as suppliers, employees or creditors. Moreover, stores also need sufficient money as changes in order to sell items to customers.
- Support growth and expansion: An accurate cash funding provides a solid base for any business to grow bigger and expand to more markets. Regular cash tracking helps report how much money you have gained and estimate how much profit will come in the future. Based on that, businesses can make better plans for growth.
- Avoid overspending: As cash is under control, businesses can avoid spending too much without plans. If not, they will be more likely to run out of available cash, leading to bigger problems.