Are you doing all you can to reduce the risk of cash theft in your business?
Businesses that deal in cash need to protect themselves against cash misappropriation. Effective cash control procedures assist in reducing the opportunity for theft and the timely identification of discrepancies. Below are some practical steps you can take to strengthen your procedures:
Avoid having multiple people use one cash register during the shift/day where possible.
The cash register balance at the end of the day should be reconciled to the point of sale (POS) cash summary, with adequate explanations given for differences.
Cash should be counted by two people where possible.
All voids, discounts, refunds and no sale transactions should be reviewed.
POS systems should be configured to ensure that, as far as practical, only shift supervisors can process voids, no sale transactions and refunds.
Cash for deposits directly to the bank should be prepared by a staff member not involved with the receipting of cash.
An appropriate banking frequency should be determined which balances the cost of banking and the risk of excess cash on the premises.
Check that the cash deposited matches the POS system summaries, reconciliations and deposit slips.
Check that visible indicators of review of voids, refunds and no sales transactions (such as initials and dates) are evident on reconciliations and reports.
Follow-up on variances where no explanation has been given and escalate significant variances over a set threshold.
Overs and unders should be logged, and logs should be periodically reviewed by management.
Bank reconciliations should be documented, retained and reviewed to ensure un-reconciled receipts and un-deposited funds are recorded and followed up on a timely basis.
Security of cash:
All cash and cash equivalents (vouchers etc.) should be kept in a locked cash register.
Cash floats and banking should be kept in a locked safe when held on the premises out of business hours.
Safes should be kept locked at all times.
Cash floats should be sufficient to meet requirements but not excessive.
Carefully consider providing an EFTPOS cash-out service as this could indicate there are excess funds on the premises and may pose a security risk for staff.
The points outlined above are a guide only and businesses must design cash handling procedures specific to the nature of their operations.
If you would like an assessment of your cash handling procedures, then please contact your Findex adviser.