Handling Cash Within a Restaurant – Different Methods

When you are working in a restaurant, it is important to learn the best practices for handling cash, especially if you will be serving or working as a bartender.

No matter what type of restaurant you are working for, you will likely receive cash for tips a majority of the time.

It is vital that restaurant owners and managers provide proper cash handling training and entrust these procedures to those who have mastered it.

Here, we will discuss some quick tips for those working in the restaurant business and want to gain a better understanding of cash handling.

Hire Good Managers

The best way to monitor cash handling overall, according to Small Business Magazine, is for restaurants to hire managers who are trustworthy and will step up to the task.

Once these managers are properly trained on efficient cash handling procedures, they should be the only ones who are handling cash register duties.

If there is a need to cash out larger amounts of money, a dual-control system should be used, where there are multiple people present who can oversee the transaction’s validity.

This way, if something happens during the transaction or someone makes a mistake in counting, the witness who is present can catch it.

Point of Sale System

A Point of Sale system is crucial to any business because it will provide insight into how much money is coming in and going out at any given time.

There are various types of point of sale systems, but many of them function in the same way and can be customized to meet the needs of your business and what particular items you are selling.

They will also help you keep an inventory of items that have been sold and how much money was made from them.

At the end of the night, the Point of Sale system should be reviewed to make sure everything adds up and that all appropriate numbers have been met.

This will avoid the headache of trying to balance out the system for a longer period of time and will keep things organized when it comes time to do taxes or accounting.

Install Cameras

If cashing out methods in the restaurant require moving cash to a different room to count it or if you have a safe or vault where money is kept, it may be a good idea to install a camera system.

This can ensure that you have eyes on any cash being counted at all times and that you can catch any potential theft, as a restaurant owner or manager.

This procedure might seem over the top, but if you have a large number of employees handling cash throughout the day, it can be the difference between losing money and not losing it.

It is also vital to ensure you are not keeping too much money on hand within the restaurant at any given time.

How Much to Keep on Hand?

To determine how much money to keep on hand within the restaurant, it is important to evaluate how much liquidity you have, or how much cash is available to spend, as well as have an emergency fund.

It is recommended that you keep anywhere between 15 and 50 percent to account for variations and unplanned events, such as running out of stock unexpectedly or losing a team member.

Being prepared with a cash reserve can help a restaurant have peace of mind in knowing there is enough cash available to keep the business running.

Invest in Your Team

Ensuring that team members within a restaurant are properly trained to handle cash is essential to ensuring that the business will continue to run smoothly.

Restaurants rely on cash flow heavily, especially when they have a bar as part of their business.

When team members are using cash on a daily basis, a business should offer training sessions to provide tips and tricks for team members to continue learning.

When a business invests in its employees, they are increasing the overall value of their business, as the employees are the heart of the organization.

Without a team of employees carrying on team values and increasing their knowledge, a business will have nowhere to grow.

When you are working in a restaurant, it is important to learn the best practices for handling cash, especially if you will be serving or working as a bartender.

No matter what type of restaurant you are working for, you will likely receive cash for tips a majority of the time.

It is vital that restaurant owners and managers provide proper cash handling training and entrust these procedures to those who have mastered it.

Here, we will discuss some quick tips for those working in the restaurant business and want to gain a better understanding of cash handling.

Hire Good Managers

The best way to monitor cash handling overall, according to Small Business Magazine, is for restaurants to hire managers who are trustworthy and will step up to the task.

Once these managers are properly trained on efficient cash handling procedures, they should be the only ones who are handling cash register duties.

If there is a need to cash out larger amounts of money, a dual-control system should be used, where there are multiple people present who can oversee the transaction’s validity.

This way, if something happens during the transaction or someone makes a mistake in counting, the witness who is present can catch it.

Point of Sale System

A Point of Sale system is crucial to any business because it will provide insight into how much money is coming in and going out at any given time.

There are various types of point of sale systems, but many of them function in the same way and can be customized to meet the needs of your business and what particular items you are selling.

They will also help you keep an inventory of items that have been sold and how much money was made from them.

At the end of the night, the Point of Sale system should be reviewed to make sure everything adds up and that all appropriate numbers have been met.

This will avoid the headache of trying to balance out the system for a longer period of time and will keep things organized when it comes time to do taxes or accounting.

Install Cameras

If cashing out methods in the restaurant require moving cash to a different room to count it or if you have a safe or vault where money is kept, it may be a good idea to install a camera system.

This can ensure that you have eyes on any cash being counted at all times and that you can catch any potential theft, as a restaurant owner or manager.

This procedure might seem over the top, but if you have a large number of employees handling cash throughout the day, it can be the difference between losing money and not losing it.

It is also vital to ensure you are not keeping too much money on hand within the restaurant at any given time.

How Much to Keep on Hand?

To determine how much money to keep on hand within the restaurant, it is important to evaluate how much liquidity you have, or how much cash is available to spend, as well as have an emergency fund.

It is recommended that you keep anywhere between 15 and 50 percent to account for variations and unplanned events, such as running out of stock unexpectedly or losing a team member.

Being prepared with a cash reserve can help a restaurant have peace of mind in knowing there is enough cash available to keep the business running.

Invest in Your Team

Ensuring that team members within a restaurant are properly trained to handle cash is essential to ensuring that the business will continue to run smoothly.

Restaurants rely on cash flow heavily, especially when they have a bar as part of their business.

When team members are using cash on a daily basis, a business should offer training sessions to provide tips and tricks for team members to continue learning.

When a business invests in its employees, they are increasing the overall value of their business, as the employees are the heart of the organization.

Without a team of employees carrying on team values and increasing their knowledge, a business will have nowhere to grow.