Between cash registers, gaming machines, ATMs and other transactions, manual reconciliations and cash handling in pubs and clubs typically leave plenty of room for error, as well as being a notable drain on resources.
However, this doesn’t have to be the case. Forward-thinking business owners in the hospitality industry are already streamlining their business accounting by investing in new technologies, such as cash management machines and cloud software, which automate auditing and reconciliation processes.
As well as a number of benefits that we’ll discuss in more detail below, streamlining business processes can have a significant impact on your readiness for an audit, a critical factor in healthy financial management.
Preparing for an audit
Whether it seems likely your venue will be audited or not, it is simply good business practice to be prepared.
The Australian Taxation Office may choose to review specific issues related to the taxation of your business, including conducting an audit if necessary. The process is simpler for everyone if you have easy access to the relevant documents when they ask for your cooperation. Not to mention it just makes plain business sense to be aware of where your money is going and coming from.
The best way to prepare for an audit is to consistently keep clear and accurate records, including both legally required documents and any others that may be relevant. Staying up-to-date with your business accounting and conducting your own periodic reviews will also ensure that you’re in good shape if an audit is required.
Automation of auditing and reconciliations
Business accounting doesn’t have to involve the same time-consuming manual processes that have been in use for decades. Instead, the following technologies allow for the automation of tasks related to auditing and reconciliation processes.
Cash recyclers are transforming the face of the modern club by automating cash handling, such as accepting and dispensing cash, authenticating currency and providing real-time financial reports.
Instead of spending time on lengthy and manual reconciliation processes, such as sorting and counting notes or coins at the end of a shift, staff are able to invest their time in more complex and people-oriented tasks.
And as an added bonus, cash recyclers reduce errors and increase transaction speed compared to their human counterparts, while also improving security and visibility—so it’s a win-win situation.
Cash redemption terminals
Installing a cash redemption terminal (CRT) is another way to reduce manual cash handling and improve accuracy. Rather than requiring staff to handle payouts, CRTs allow venues to automate the payout process, freeing up employees for other tasks and providing a better user experience for patrons.
As with cash recyclers, CRTs are also able to track cash flow, simplifying the reconciliation process for the business and reducing the risk of not having sufficient cash for a payout.
Australian companies are rapidly adopting cloud-based services, with 42 per cent of businesses using paid cloud in 2017–18, according to Deloitte. The overall economic productivity benefit of cloud services is already estimated to have reached $9.4 billion in the five years leading to July 2019. Additionally, 78 per cent of users reported improvements in productivity from using cloud services.
In other words, cloud technology can have a significant positive impact on business productivity. And when it comes to cash management in the hospitality industry specifically, the biggest benefit cloud technology can provide is increased oversight of your overall financial position. By investing in cash management products that provide real-time data to a cloud-based software system, business owners in the hospitality industry can consolidate information from multiple cash points, including ATMs, cash recyclers and CRTs, and make more informed decisions.
Whether you’re a small independent pub or a large hotel with multiple sites, automation can save you time and money, improve accuracy, visibility and customer experience, and enable you to make more informed financial decisions for your business.
Choosing the right devices and vendor for your hospitality business is an important process and is one that includes many points of comparison. To help you find the best fit CRT for your pub or club, download our Ultimate Cash Redemption Terminal Buyer's Guide here.