The pros at Contractor In Charge note that cash handling your cash is a crucial part of operating a business. This can be especially true if you run a small business that doesn’t have much financial capital at its disposal or if you operate as an individual who isn’t able to access larger institutional banking networks. Cash management and the ability to efficiently account for all of your transactions are two key areas that need improvement if you want to grow and operate your business more effectively and save yourself from issues with loss or fraud. In this article, we’ll review some tips from Contractor In Charge on improving your cash handling.
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Track your cash
According to the Contractor In Charge, the first thing you need to do to improve your cash handling is to track your cash. This will allow you to ensure that each transaction is accounted for and that there aren’t any gaps in the cash flow. It will also help you avoid any potential issues with theft or embezzlement.
If you don’t know exactly where your money is going, you might be leaving yourself vulnerable. When it comes to tracking your cash, a lot of businesses start with basic accounting and bookkeeping software. Tracking of payments is set up in the bookkeeping system. In QBO, there is an account called Undeposited Funds that is intentional for the tracking and clearing of payments against deposits.
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Secure your cash whenever possible
The best way to ensure that your cash is safe is to secure it whenever possible. This means keeping cash in a safe at your business as well as in a dedicated bank account. You should also make sure to regularly change the combination on a company safe so that no one knows the combination.
Establish a daily cash handling cycle
The last tip we have for improving your cash handling is establishing a daily cash handling cycle. This means that you’ll have a specific time every day when you count the incoming cash for the day. This will help you avoid any potential issues with embezzlement, payroll theft, and theft. You should also ensure that your cash handling cycle is consistent and that it doesn’t change on a whim. If you have a daily cash handling cycle, you have a better chance of sticking to that cycle.
Wrapping up
Handling cash is a crucial part of operating a business. However, if you don’t understand how to improve your cash handling, you might end up losing a lot of money or even stealing from your customers. Luckily, there are many ways that you can improve your cash handling. The first thing you’ll want to do is track your cash.
This will allow you to make sure that each transaction is accounted for and that there aren’t any gaps in the cash flow. It will also help you avoid any potential issues with theft or embezzlement.
Next, you’ll want to set up a constant monitoring process to ensure everything is in order. This includes checking your books, reconciling your bank account, reviewing statements, and setting up alarms and alerts on your accounting software. You’ll want to track all incoming payments, secure your cash whenever possible, establish a daily cash handling cycle, and lastly, you’ll want to make sure to stick to it.