Would you like your cash management to be improved long-term? Then don’t wear yourself out by constantly putting out cash-related fires in your organization.
This might provide some relief in the short term, but the underlying issues will likely remain unchanged.
It’s better to start with the basics:
- Determine how much time your cash management processes currently take and how much money this costs.
- Work out how many man-hours are spent on transporting cash to the various locations.
- For each petty cash fund, create an overview of the number of users and the number of payments per accounting period.
- Consider the (dis)advantages of having one centralized cash fund over having several local cash boxes. And ask yourself if, for instance, payments or certain administrative processes could be digitalized and/or automated?
Whatever you do, stay focused!
By setting clear priorities, working on one task at a time and involving the right people at the right time, you will work your way towards a solution in a more efficient and focused way.
Start, for example, with a new structure for expense justifications. Think about what it would take to record and process these expenses faster.
Digitalization is an obvious step, as this, generally speaking, creates big improvements in inefficiency.