How to Plan Ahead for Your Cash Needs – Cash Drops and Business Spikes
Earlier this week I discussed planning for your cash needs including how much you should keep on the premises and how often you should replenish it. Now I’d like to get into planning for cash drops and business spikes. Now, let’s get to the information you’ve been waiting for… How often do you make a cash drop and how do you plan for spikes in business volumes?
Remember, you should always ask yourself the following questions concerning your cash needs:
• How much is enough to keep on premise?
• How much do you keep in your register drawer or drawers? How much do you keep in your safe?
• How often do you need to replenish your on-premise denominations?
• How often do you make a cash drop?
• And, how do you plan ahead for spikes in sales volumes due to time-of-day, day-of-week or time-of-year conditions?
Now, let’s get to the information you’ve been waiting for…
How often do you make a cash drop? You should make cash drops whenever your cash on-hand exceeds 50 percent of your total premises cash. For some high cash turnover businesses like casinos, this could be several times a day. For small service retailers like dry cleaners or hair salons, this might be several times a week, unless they make a practice of dropping their cash along with check receipts in the bank as part of their daily closing.
For sake of your cash security and employee safety, Garda’s CashLINK service provides a smart safe cash vault that reads and secures each note deposited. It instantly verifies your cash drop, securing it from the moment a cash note is put into the smart safe to the time it gets to your bank. And Garda guarantees its security from your business to the bank. (For checks, Garda also offers RDCheckTrak Remote Deposit Capture, giving you the same convenience and security as for your cash, plus each check it scans is automatically sent to your bank, giving you immediate deposit and faster cash flow.)
How do you plan ahead for spikes in business volumes? If you’ve just opened your business or are planning to do so, some times of day, days of the week, holidays and seasons like holiday shopping require more cash on hand than others.
Without a history of your business transactions at those times, you might just want to double your available cash to be safe. (The old adage applies here: “Better to have it and not need, than need it and not have it.”) You might also consult similar, established businesses that you’re not directly competing with (e.g., a hair salon in a similar socio-economic neighborhood but on the other side of town) about their cash needs for those times.
For more information on Garda’s cash management services, visit our website.