Retail stores have a small profit margin. The company has to incur a loss due to cash leakages that are a reduction in its revenue. POS technology will put a patch on your cash leakage.
The retail business has a large movement of goods, humans, and money. Retail business owners already have a lot on their plate to accomplish. The last thing they want to do is look after the employee’s integrity.
Loss and theft are the biggest drains in any retailer’s pocket.The consumer is not only the culprit to steal. The thief can belong to your team as well.
According to the National Retail Federation, one-third of the shrinkage is due to internal theft. Retailers lose a large amount of money from the cash drawers. Retail business leaders are implementing an ideal point of sale solution to record all sales transactions to tackle this challenge. It helps to record every sales transaction and updates it for future references.
In this blog, let us do an extensive analysis of how POS will prevent cash leakage for retailers:
Restrict Editing Access to Managers and Above Only:
The traditional cash registers have a limitation that you can complete the sale without registering it and the taxes that you need to pay for it. Employees can effectively wipe out the sale history.
The customer has paid for the products. The products get reduced from your inventory but do not add up to the profits.
Implementation of a cloud-based POS software will record each minute detail of the transaction and store it on a central server. Retailers should allow completing important transactions after the manager’s approval. Employees cannot withdraw cash from drawers, apply manual discounts, or delete the product from the sale history without the manager’s permission.
Once the employee raises a ticket for approval, the POS software records everything for transparency. It helps to understand the real culprit behind the crime. Recording all the transactions and approval history makes it easy for the business leader to minimize cash leakage.
All the vital information gets recorded on the central server with a backup. It helps retail business leaders to track bits and pieces of business transactions and immediately strategize an action plan for developing problem areas.
Identify and Solve Discrepancies Faster:
The retailers use point of sale solutions to control cash transactions at each terminal during the start of the day and the closing of the day. The team can identify and solve discrepancies at the end of the day. The reports get shared with the management automatically.
The POS software helps to complete the cash out transactions of each terminal at the end of the day. It has all the transactions summary and benefits them to understand how many transactions are through cash, card, bank transfer, or UPI. Managers can get a real-time cash summary report to check after each shift. The team can calculate the difference between the actual amount needed and the amount collected.
The management should ask the employee to pay the deficit and incur the loss. The retail stores can segment the terminals based on the modes of payment accepted. The less reliable or capable resource should take digital payment system. The resources that have higher integrity should take the cash terminal to avoid discrepancies.
In the previous blog, we studied how to reduce loss and theft using POS technology.
Integrate Fraud Prevention in Your POS:
The best POS software solution will integrate a user-friendly mechanism to detect and prevent fraud. Cash transactions have more loopholes than digital transactions because of their traceability. The terminal should have hardware installed with EMV card readers, UPI payment, and bank transfers.
Integration of the latest payment technologies helps to prevent fraud and cash leakage. Restaurant owners should adopt the policy that if the customer does not receive an invoice, they will get the order for free. It helps owners to track the number of unbilled orders and the integrity of the employee.
The POS software for small businesses helps to automate accounting. It generates sales, purchase orders, tax payments, expense reports in just a few clicks. It is capable of accurate real-time reports and to understand the cash leakage points at all levels.
We have gathered essential components on how to choose the best POS software with diverse features in the year 2021.
To Wrap Up:
Employees are the wheels to your retail store. You invest a large amount of money and time in them, but everyone does have integrity for their job role. Money can easily take down morale and integrity. Cash leakage is an ever-growing concern for retailers. Implementation of the best POS system that suits your needs will help to prevent cash leakage.