By Rob Starr
Small businesses that deal in cash like food trucks and salons need to protect themselves against errors involving cash and theft. Here are 20 cash handling best practices your business should follow so everything runs smoothly.
Cash Handling Best Practices
Eliminate Slush Funds
Cashiers in small retail stores are often expected to make up for shortages from their own pockets. This can lead to an employee slush fund to pool resources. It’s generally a bad idea that can hide the real reason the drawer goes short. If you use one of these, get rid of it.
Be Strict About Differences
A few dollars short here and there might not seem like a big deal at first in a small diner that has a good lunch crowd. However, ignore discrepancies and you might be glossing over a bigger issue. Recording all losses and overages helps to uncover anything deliberate.
Standardize a Process
Everyone needs to be on the same page when staff is handling cash on your small fleet of food trucks. Putting together a one-size-fits-all set of rules takes the guesswork out of handling cash for employees that work autonomously.
Know the IRS Obligations
You need to know what the government expects as far as cash transactions go. There’s no way around performing your due diligence. For example, large cash payments over $10,000 need to be handled a certain way. If you’re in doubt, check with the IRS or your accountant.