STORES Magazine - June 2011 - (Page 96)

THE LAST THIS / CONSIDER LAUGHPOV Getting All You Can from Your Cash BY JIM POTEET Cash is the lifeblood of your business, but in order to use it to its full potential you need complete visibility into your cash flow. It’s often assumed that it costs nothing to process cash, and for that reason it often gets less attention than more expensive payment methods like checks or credit cards. If cash is not managed properly, however, a business may be losing revenue and not even realize it. The most recent National Retail Security Survey found that 1.44 percent of retail sales were lost to shrinkage in 2009; for all retail businesses in the United States, this adds up to an astounding $33.49 billion. What’s even more amazing is that this figure may be significantly higher because the U.S. Department of Commerce has estimated that 75 percent of internal theft goes undetected. These losses are preventable if businesses have proper controls, security systems and tools in place to track deposits and change orders. Unfortunately, many retail businesses accountability down to the store, department and cashier levels. In our work with leading retailers, Brink’s has found that businesses without automation often count cash three times or more before it’s deposited: In many cases, this amounts to two hours a day of your manager’s time. Not only is this time not being spent on areas crucial to store operations like interacting with customers and managing employees, it’s an expense you can reduce — if not completely eliminate. Another area that is often overlooked is the information that can be gleaned from cash deposits that can help you better manage your business. Visibility into your cash can help with forecasting, liquidity and regulatory reporting requirements. For example, what if you could “pay” for change orders with your deposits Jim Poteet is vice president of product without this transaction going to your development for Brink’s U.S. bank? This would provide you faster access to your funds, reduce float or “activity in flight,” eliminate outof-balance transactions and reduce The most recent National Retail Security Survey banking fees. found that 1.44 percent of retail sales were lost to In addition, detailed deposit reportshrinkage in 2009; for all retail businesses in the ing at the department and/or cashier United States, this adds up to an astounding levels can eliminate banking fees. Deposits can be reported by their $33.49 billion. origination point and then reconciled against a department, general ledger or other sub-accounting code to help you manage deposits more efficiently from point-of-sale still rely on spreadsheets and stand-alone systems to manto back-office accounting systems and on to your banking age their cash and don’t have a closed-loop cash manageaccounts. Tracking deposits back to each till can close the ment system. reconciliation loop. While most retailers share some similar processes, every Increased visibility store has specific cash handling needs. In the last 20 On the other hand, an integrated approach to managyears Brink’s has worked with leading retailers to develop ing cash would include automated tools to create, prepare best practices for automating the in-store cash-handling and track deposits, process change orders and centralize process, aggregating deposit information across organizainformation for reporting. This approach automates cash tions and consolidating reporting data. management and bank reconciliation while driving financial 96 STORES / JUNE 2011 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - June 2011

Stores - June 2011
Editor’s Page
President’s Page
Retail People
CEO Compensation
Customer Service
Business Strategy
What We’ve Learned
Loss Prevention Supplier Directory
Customer Rewards
Business Management
Social Media
Planning Solutions
Loyalty Programs
Business Intelligence
Store Operations
Divisional Update
NRF News
Point of View
Retail Industry Calendar
End Cap

STORES Magazine - June 2011