Deposit tracking sounds simple, right? Your stores send deposits to the bank, and the funds show up in your account. Unfortunately, there’s a lot of ways your deposit process can go awry.
As with many challenges involved in retail currency management, manual processes cause many of the problems with deposits. Manual procedures leave a lot of opportunity for fraud and errors – both inside and outside your business.
As I've worked with retailers, I’ve heard about pain points like these:
The problem is that most retailers think issues like these are just par for the course. They’ve been handling store deposits this way for years, and they have long-standing banking relationships that aren’t easy to change because of geographical concerns. But, through automation and integration, deposits can be easier and more efficient.
When you’re ready to the tackle the problem, make sure you have all the bases covered:
Track deposits every step of the way
Do you have data about all the critical points in the deposit process? If not, you could be missing important opportunities to prevent loss and better manage cash assets. Ensure you can view deposits at these points: expected amount, created, picked up, in transit, received by the bank, credited to your account, adjustments and reconciled with your corporate records.
Match fees to services
Did your armored car service really pick up seven deposits from Store 582 last month, or was it five? Did your bank charge you for adjustments that weren’t actually made? Those discrepancies add up, especially across a large enterprise – and that’s not even including the time your team spends to find, flag, research and resolve these erroneous fees. Automated fee reconciliation as part of your deposit tracking process will ensure you don’t overpay or waste time researching mistakes.
Optimize cash assets
Based on sales, you should have a good idea of deposits each day at each store – if your team has time to manually verify that deposits match an expected amount based on sales, that is. But if you tie deposit tracking to other automated currency management functions like payment reconciliation, you’ll know the expected deposit amount for each store each day, allowing you to better forecast and deploy cash assets.
As your business grows and evolves, certain aspects that seemed “good enough” in the past will have to get better if you want to stay competitive. Deposit tracking might not be the first place you’d think to look for opportunities to streamline operations and cut costs – but it shouldn’t be the last either. Talk with your loss prevention, treasury and sales audit teams about the challenges they see with deposits. Improving how they’re handled could make a big difference to productivity and profitability.
Currency management guru Tyler is product manager for the VeriBalance platform and has a unique eye for finding the best way to solve our customers' challenges.
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