Cash Collections ProcessOct 30, 2023
Fundamentals of a good cash collections process:
Over the last few years, cash collection like everything else in the industry has become A LOT more complex. Between new software, technology, and the t providers we all love to hate, it is nearly impossible to truly know the cash you are collecting on a daily basis.
And yet, as we move into 2024 this is the one thing we MUST know. This is the foundation of our budgets, our forecasts, and our plan for achieving the return on your investment we know you deserve.
So what should your daily cash process look like as we move into 2024?
- Point of sale setup: When was the last time you reviewed your daily sales report from your POS to ensure that the cash portion of the point-of-sale (POS) system is functioning correctly?
- Cash Drawer - what is kept in your cash drawers and how is this monitored/recorded? This should be part of the POS setup, and confirmed by the manager daily. Managers should count the starting cash in their register at the beginning of their shift and record it.
- Taking Orders and Accepting Payments: Managers/owners should routinely review POS to make sure staff is accurately taking customer orders and collecting the total amount due. Many times issues in this area will show up as part of detailed discounts/voids reports.
- Provide printed or electronic receipts to customers for each cash transaction. It is critical that food is not delivered to customers unless put through the POS system first.
- Recording Sales: In addition to the POS system, the manager should keep a detailed record of daily sales for each location, which includes expected cash deposits.
- Daily cash deposits - cash deposits to the bank account should match the daily sales record kept by the manager. Any additional cash deposits unrelated to daily sales should be made in a separate transaction at the bank.
- Daily cash balance - the owner should monitor the daily cash balance in bank accounts and should track cash increases/decreases on a daily basis.
- Cash deposits should be reconciled on a weekly basis.
While this sounds complex, these steps can actually be implemented with very little additional work from your staff, management, or ownership.
We believe NOW is the time to review your daily cash process so that we KNOW how much you are making in your business every week.