Cash Management Systems - Can you afford
not to have one?

With an upsurge of interest in Cash Management Systems Rob Taylor-Brown, BCP’s Commercial Manager, sheds some light on these new systems and what they can do
for your business

Can you explain exactly what a Cash Management System is and how it works?
A Cash Management System - or CMS - is an IT solution which allows you to automate and control all activities related to processing store takings. Very simply, store takings are counted automatically and totals fed directly into the system for totalling, reconciliation and reporting.

What benefits does a CMS offer?
The main benefits are significantly increased efficiency, through improved accuracy and productivity, plus better security and control of both cash and data.

By simplifying and automating cash processing operations, Cash Management Systems improve speed and reduce costs. Savings can be enormous as coin and note counters can count at a fraction of the time it takes a human. Also, counting errors are 5 times less likely than with human counting – removing the need for double counting and recounting. Automatic input of data to the cash office PC also avoids the errors associated with paper based systems and the manual input of data, as well as saving time.

A good CMS will also give improved security and control over the cash management process. Many provide a full audit trail for total traceability of transactions. They also help to reduce shrinkage from staff theft, mistakes at the till or cash office and counterfeit currency. The mobile nature of most counting equipment means it can be taken to the till or other cash point. This means that cashing up or spot checks can be done in situ rather than moving large amounts of money around the store.

A key benefit for most retailers is that the systems free up staff for more customer orientated work and free up management to focus on retailing rather than cash management.

The system should also provide comprehensive reporting at the touch of a button and powerful control features to ensure integrity.

What about non cash items and other store activities such as kiddies’ rides, etc?
A flexible system will allow you to handle all store activities, not just standard till takings. Typically, this can include kiddies’ rides, lottery, fuel/forecourt, café, tobacco, charity campaigns, special orders, etc. It should also be able to handle non cash items such as coupons, EFT transactions, luncheon vouchers, car park refunds, gift tokens, etc.

What about multiple till lifts and floats?
That’s not a problem. Most Cash Management Systems are flexible enough to handle an infinite number of till lifts from an infinite number of payment points. They also can be configured to meet your own requirements in terms of floats and till replenishments.

Will it interface to data from my store system?
A good system should allow full reconciliation with data from your store system, including reconciliation at cashier, till and department level.

What about multiple outlets and integration to head office systems?
A properly developed system should easily handle multiple outlets and integrate directly to head office systems. BCP’s CSM, for example, provides centralised control for multi-site operations. It allows Head Office personnel to set up individual store cash management systems centrally. From Head Office they can collect, monitor and report on data from all stores in the estate, including full reconciliation and reporting by store and area.

The system is rather unique in its use of AIMS Internet Messaging for integration. This gives Head Office staff access to branch data within minutes of reconciliation. As well as delivering real-time financial control, this allows Head Office to detect and act upon any suspicious looking data promptly.

What does a retailer need to implement a Cash Management system?
There are two key requirements – the coin and/or note counters and the specialist software to operate the system.

There is a wide choice of counting machines available from companies such as De La Rue and Cashmaster. These range from compact, mobile systems for the smaller operator to large, static counters designed to handle the large volumes of cash taken by big organisations. New ideas and models are coming along all the time. For instance, intelligent cash drawers are now available, which can count the money in a cash drawer and immediately detect a discrepancy.

The software you select needs to be able to work with both the counting hardware you choose and with your own till system. It must also be flexible enough to reflect the way your organisation processes takings and to handle all your requirements in terms of multi site operation, Head Office functionality etc.

How much does it all cost?
It’s difficult to be precise. It largely depends on the size of your operation, the hardware you choose and the amount you require, but, in general, they are relatively low cost solutions. To be honest the savings generated by the systems are so significant that most can pay for themselves within less than 12 months.

If it's so good why hasn't it caught on yet?
Mainly through lack of awareness and lack of available software. There’s been plenty of counting hardware around for some time, but the hardware manufacturers have not had the relevant software to offer full CMS, rather than just a counting solution. The software has only become available recently from specialist software houses like BCP who have identified the gap in the market. It’s pretty certain that it will now catch on rapidly as major retailers have been searching for such solutions for a while.