Retailers are leaving a powerful amount of cash data on the table

Powerful analytics software is now providing operational insight and visibility far beyond transactional data; it is providing a platform for HR, IT, loss prevention and treasury to derive value apart from the monetary value of the payments themselves.

Retailers have until recently relied heavily on in-house developed systems for monitoring and analyzing cash transactional data. They’ve kept tabs on the movement of cash into their till and into their bank accounts but have missed the wealth of data by not monitoring the path and treatment of cash within their organization.

Retailers are keenly aware of the cost of each transaction conducted via credit and debit cards in their business as the cost structure can be monitored and forecasted across large enterprises with relative ease. In contrast, the cost of cash is not as easily monitored, optimized and forecasted.

Of note, a recent study conducted by the IHL Group revealed that retailers, whether they take in a small or large percentage of physical currency, process cash at the same average rate of nine cents per dollar a transaction. The percentage sacrificed to cash management is largely associated with human costs, such as balancing tills, preparing deposits and transporting currency. These costs are more often than not accepted as the cost of doing business, as they represent common day to day tasks of employees. However, the time spent by loss prevention and treasury investigating discrepancies at the point of sale (POS), cash-in-transit (CIT) manifests or in their bank accounts drain valuable resources from the organization.

In recent years, cash management tools have developed beyond simple safe-keeping functions. For example, cash acceptors equipped with counting sensors and validation technology are now sophisticated cloud-based software solutions that reduce losses, save time on back office duties and deposits, as well as deliver a verifiable return on investment with an industry-wide acceptance rate of approximately 95 percent. Some of these functions include: Preventing counterfeiting; capturing inaccuracies; saving time; streamlining cash handling operations’ reducing profit loss.

Whether it’s external cash management associated with currency logistics such as CIT or provisional credit from banks - these advanced systems allow businesses of all sizes to manage working capital more effectively.