Cash still plays a key role in our daily lives since we aren’t yet living in a completely cashless society. Therefore, cash management solutions are necessary for business owners. Especially in the retail industry, frequent cash deals through Point of Sale (POS) systems often employ a cash float. Within the next paragraphs, we will find out about the exact meaning of cash float in POS systems and how to effortlessly keep track of it.
What is cash float in POS systems?
A cash float is a reserve of cash, usually in a small amount. Because customers rarely provide the exact amount of money for the purchases, the establishment of the cash float fund is to serve this demand. You can also use this amount of money for specific expenses of the business. Here are some key points to note down when managing cash float in POS systems in everyday operations.
Cash float management in POS systems
Set up rules for cash float
At the very beginning of setting up a business, there are four things retailers should consider to control the fund from cash float in POS systems:
- The cash float will be used for what types of expenses
- The amount of money to maintain in the float
- Retailers want to keep the fund during which time of a day
- The frequency of cash float replenishment
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Store cash float fund in a secure place
Money is not everything, but it is certainly important to a business’s profit. Once the float is collected, place it in a secure location. Usually, a locked cash drawer of the POS terminal/cash register will do you good.
Have a cash float custodian
To take good care of the day-to-day transactions related to the float, the business should appoint a custodian for such duty. Always make sure that the custodian replenishes the fund when it’s getting low, and of course, make sure you know where and how the money has been spent.
Keep records of cash float fund
The custodian needs to keep records of any increases and decreases in the level of cash float. Because the person responsible for finances and accounting of the business may need the information, the business owner should carefully instruct the custodian to record the figures thoroughly and accurately.
Inform everyone about the establishment of the cash float
It is the responsibility of business owners to announce the float establishment to anyone who might need to use the fund. If anybody wants to use this money, he/she must have the approval of the custodian. When the level has an unusual fall, the custodian must approach the person in charge of finances within the business to replenish the account.
How can ConnectPOS assist you with cash float management?
ConnectPOS is a feature-rich and powerful cloud POS system for every retail business. You can easily monitor cash adjustments since all metrics such as sales, inventory, and customers are shown on a clear dashboard for further analysis. Furthermore, our POS system will keep you up to date with more than 20 reports from both online and offline stores based on various business elements.
Secure and efficient cash management solutions are must-haves for every retailer. Finding a way to conduct and simplify your cash management processes can remarkably improve your cash float in POS systems and overall, boost your business performance.