What are the best cash handling practices for avoiding shortages and overages?

1 Count cash carefully

One of the most common causes of cash discrepancies is human error, such as miscounting, misplacing, or mixing up bills and coins. To avoid this, you should always count cash carefully and double-check your calculations. Use a counting machine or a calculator to assist you, and keep a record of your counts. When receiving or giving cash, count it in front of the customer or the supervisor, and ask them to verify the amount. If you notice any discrepancies, report them immediately and try to find the source of the error.

2 Secure cash properly

Another cause of cash discrepancies is theft, either by external or internal parties. To prevent this, you should always secure cash properly and follow the bank's policies and procedures for cash handling. Keep the cash register locked when not in use, and limit the access to authorized personnel only. Do not leave cash unattended or exposed, and use a safe or a vault to store excess cash. When transporting cash, use a secure bag or a container, and avoid carrying large amounts of cash alone or in public.

3 Balance cash regularly

A third cause of cash discrepancies is inconsistency, such as forgetting to record transactions, making incorrect entries, or using wrong denominations. To avoid this, you should always balance cash regularly and reconcile your cash register with your cash on hand. Use a cash report or a cash log to track your transactions, and make sure to include all receipts, vouchers, and adjustments. At the end of the day or the shift, count your cash again and compare it with your cash report. If you find any differences, investigate them and correct them as soon as possible.

4 Train and audit staff

A fourth cause of cash discrepancies is lack of knowledge, skills, or supervision. To avoid this, you should always train and audit staff on cash handling best practices and expectations. Provide clear and consistent guidelines and instructions for cash handling, and review them regularly. Monitor and evaluate staff performance and compliance, and provide feedback and coaching. Conduct periodic audits and spot checks to verify the accuracy and security of cash handling, and identify and address any issues or gaps.

5 Use technology wisely

A fifth cause of cash discrepancies is malfunction, such as errors in software, hardware, or network. To avoid this, you should always use technology wisely and ensure that it is reliable and up to date. Use a cash register or a point-of-sale system that is compatible with your bank's systems and standards, and that can record and process transactions accurately and efficiently. Check and maintain your equipment and devices regularly, and report any problems or glitches promptly. Backup your data and records frequently, and use encryption and passwords to protect them.

By following these best practices, you can improve your cash handling skills and avoid shortages and overages that can harm your bank's operations and reputation. Cash handling is not only a technical skill, but also a professional responsibility that requires attention, diligence, and integrity. By mastering cash handling, you can enhance your banking career and provide excellent service to your customers and your employer.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?