Guardforce Post

In a world of rising inflation and other global challenges, retailers are working hard to survive and bring operating costs down any way they can. As such, we are seeing more retailers starting to process and handle their cash income in-house. By dealing with their own cash received, from counting to end-of-the-day reconciliation and banking in, retailers are under the false impression that it incurs no expenses and therefore saves costs. However, in reality, this method can often be more expensive (and risky) than outsourcing the service. To understand the reasons behind this, in this blog, we will look at why retailers should outsource their cash handling and cash management.

First, what are the hidden costs and risks of in-house cash handling?

1. In-house mishandling of funds

Unfortunately, in any cash-driven business, the risk of staff mishandling money during cash processing is always present. This includes both human error and outright theft. Even with internal controls in place, such as prompt recording of receipts, keeping cash locked away, making timely deposits, ensuring the person collecting and recording receipts is not the same person as the one making deposits, and generally keeping transfers of cash from one person to another to a minimum, you can never eradicate completely the risk of funds going missing.

2. External theft risks

Moving cash from your premises to make a deposit is always the riskiest part of cash processing due to the threat of theft. This is especially relevant for small or medium-sized retailers as they have less security, making them an easy target for thieves. Having in-house staff move money not only exposes them to potential violent action but can also expose the business to legal liability. Retailers should also be aware that cash being transited by in-house staff is often not covered by insurance should that money be stolen.

3. Manpower costs

It takes manpower to perform cash management whether it is performed in-house or not. Those valuable hours spent processing cash and then queuing at the bank are a big hidden cost of in-house cash processing, not to mention the time and effort needed to hire, verify (including performing background checks), train and manage staff involved in cash handling.

How outsourcing cash handling can help

By outsourcing cash handling to a company such as Guardforce Hong Kong, retailers can mitigate the hidden costs and risks associated with in-house cash processing while enjoying the following benefits:

• Cash processing services not only reduce operational risks and improve accuracy, they also cut costs by reducing the need for staff to be employed in cash management and bank fees can be eliminated. Actually, the service fee charged for outsourcing cash processing is often lower than the bank charges a retailer would be charged if they were to perform this in-house.

• Companies such as Guardforce offer reliable cash-in-transit services to securely transport cash in armoured vehicles from your premises to the bank or a secure vault. Professional cash collection reduces both the risk of theft and also any risk to your staff, while also being covered by insurance should there be any incident. Guardforce is actually one of the few companies in Hong Kong to hold a Type II licence for providing secure transportation, collection, delivery and storage of cash, valuables and confidential documents in Hong Kong.

• Professional outsourcing cash management services have strict internal controls already in place which reduces any risk of mishandling of cash as well as improving accuracy. Guardforce Hong Kong’s cash processing centre, for instance, is protected by access control systems and is constantly monitored by real-time video surveillance. The service is performed with a guaranteed 24-hour turnaround from collection to banking in, with clear reports provided to clients.

Learn more about Guardforce Hong Kong’s cash processing and cash management services

Given the above reasons, the benefits of outsourcing cash processing and cash management services are clear. Guardforce is a leader in the industry and has been serving Hong Kong for 45 years. For more details on the company and its services, visit their website here.