How Cash Management Solutions Help Your Profitability

With decades of experience helping businesses secure success, we lay out ways ineffective cash management hurts profitability and how technology can help. Why is an effective cash management solution so important?

CASH MANAGEMENT SOLUTIONS: CASH IS HERE TO STAY

Several cash usage studies have broken down the use of cash and the reduction thereof into five markets based on the decreasing-use trend. It is evident from the studies that South Africa, as an emerging market, has one of the slowest rates of reduction and is one of the heaviest cash users globally.

Currently in South Africa, more than 50% of the value of consumer transactions are completed with notes and coins. Cash is noted by the South African Reserve Bank as the most widely used payment instrument.

cash usage graph
Source: McKinsey & Company

One recent study analysed the cost of cash compared to debit cards across 52 countries, using resource and private costs to calculate the social cost for both payment instruments. Consumers and retailers showed that the unit cost of debit cards is 2.8 times more than that of cash.

In Times of Uncertainty, Cash Dominates

The South African Reserve Bank (SARB) concluded that cash in circulation grew by 8.23% in value between March 2020 and March 2021, reflecting a rise from R155.544 billion to R 168.339 billion. It is clear from the SARB information that consumers revert to cash as a payment instrument in times of uncertainty and will continue to do so.

growth of cash in circulation
Source: SARB Online Statistical Query, series KBP1000M

Failing to Manage Cash Is a Failure to Plan

End-to-end cash management practices, being very labour-intensive and time-consuming, are sometimes neglected in favour of the everyday running of the business. But managing cash and the end-to-end planning of the cash management cycle is critical, as cash is the lifeblood for any business.

The timing of cash credits to a business bank account and the associated cost related to the cash management is fundamental in the overall business strategy, impacting stock holding, stock payment, salary payments and cash flow, to mention a few.

Beware the Risks of Success

There are financial and business risks to keeping unsecured cash onsite, be it for planned trips to your bank or to save cash for unplanned eventualities. Unbanked money simply remains idle without contributing towards the business operation and profitability.

If you keep too much cash onsite, you risk potentially being a target for criminals. Robberies put your employees and your customers in harm’s way. So as the amount of money grows, so do the risks associated with keeping money onsite.

Internal theft is a risk that also hurts profitability. Studies have found that upwards of 30% of inventory shrink is attributed to employee or internal theft.

Every stage at which cash is handled – at the till, cash-up and transporting money to the bank – is a potential weak point in your cash-handling cycle, creating opportunities for internal theft.

Protector 4000d-s1

To help solve this problem, Deposita incorporated the traditional benefits of a safe, reducing the chance of either internal or external theft, and ensuring the timely deposit of funds in your bank. Our leading smart-safes go beyond ordinary deposit safes. We use the latest bill and coin handling technology with world-leading applications.

More About Deposita’s Cash Management System

With Deposita’s end-to-end cash management solution, you reduce the number of cash touchpoints, increase efficiency and optimise the cash levels for your business through cash flow optimisation.

Management and employees spend less time on complicated, outdated cash-handling processes - freeing up time for more important, more profitable tasks for your business. Other savings include saving management time spent reconciling cash transactions, preparing floats and time spent banking deposits at your nearest bank.

Our holistic cash management solutions support and coordinate multiple departments, including operations, financing, IT and security, to improve overall profitability across your business.

Deposita Offers More Intelligent Cash Management Solutions

Through years of both local and international experience, our integration capabilities into businesses and banks are world-leading. As an ISO 27001 accredited organisation, our integration options will assist any business to achieve automated reconciliations and real-time operational control through our Connector Software application.

Our industry-leading AI-driven solutions allow real-time access to reports and account information through our sophisticated, secure online customer portal.

Access Funds When You Need Them

One of the critical benefits of Deposita’s cash management smart-safe solutions is faster access to your financial data and funds. You receive credit for cash deposited in your device based on various settlement options customised to suit your business needs.

In This Fast-paced World, No One Can Afford Downtime

We don’t stop after installing your smart-safe. Our customer service and support are available 24/7 to give you, your staff and your business peace of mind. Our cash management solutions are supplied with advanced remote monitoring and diagnostics, resulting in proactive service reaction and ultimately limited downtime.

We ensure your onsite solution is running optimally. We have built-in diagnostics to help you troubleshoot potential issues onsite, minimising safe downtime.

There’s No One-size-fits-all Cash Management Solution

No two businesses are alike. So, we consult each company and carefully consider the features and functionality you need to ensure we provide the optimal bespoke solution, driving your business success.

Deposita bespoke solutions

We coordinate the physical and technological installation of the solution to smoothly integrate the new processes into your operations and existing service providers. Whether you’re a small retailer, a regional wholesaler or a national bank, we incorporate existing security and your other providers to design faultless solutions built around the right smart-safe for your business.

We help you, your staff and your customers do more. More with your time, more with your money and more with your energy.

To find out more about how we can create an end-to-end bespoke cash management solution for your business, contact us to speak to one of our experts.

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