By now you probably know that cannabis businesses are cash heavy—especially dispensaries. Managing that cash doesn’t have to follow old-world best practices. Instead, there’s a modernized approach to managing your cash that’ll make your cash handling process smoother than silk. Introducing cash recycling!
Cash recycling machines make your cash handling processes significantly more efficient and secure by reducing the cash you keep on-site.
Cannabis businesses face a very specific problem: banking limitations. In the U.S., cannabusinesses can expect services from less than 15% of financial institutions. That might not seem like a big deal, but that’s only about 5% of the country’s banks.
So how do you deposit your money if you find that unicorn of a bank that’ll work with you?
Because of the travel limitations of cannabis-related cash (brought on by the Racketeering Transportation Act and the tax impact of 280E), cannapreneurs may find themselves loaded up with cash, and no way to move it. Banking is especially challenging because transporting cannabis products and cash across state lines is prohibited. It can be pricey to hire an armored vehicle (if you can get one to work with you – federal regulations have made it risky to work with cannabis-related businesses).
Every transaction is captured on camera with a cash recycler, and you can be absolutely certain that the machine will have the amount of cash reported when you remove that cassette.
Cash recycling, on top of boosting your on-site and transported cash security:
- Mitigates cash counting time, workload and mistakes
- Removes the need for cash on hand to stock your registers
- Gets rid of the need to make change for patrons
Cash Recycling 101
You can count on your cash recycling machine to take deposits, safeguard your money until you withdraw it, and even arrange bills. It’s like a bonus employee you can always count on to never call in sick or make mistakes—and you don’t even have to shell out a salary. It’s a huge asset to your business that makes cannabis bookkeeping simple.
Cash recyclers are connected to your registers, and they read the serial numbers on the bills you receive. As a result, you can expect high accuracy and that you’ll need less cash on hand.
Because they’re connected to registers and read serial numbers on bills, they are highly accurate and reduce the need for additional cash on hand. Up to three registers can be handled by one recycler.
By automating your cash handling procedure, your team will spend much less time counting and recounting cash to balance daily sales. How often do you or a team member have to work past close because you’re caught in a never-ending round of recounting to try to figure out why the cash doesn’t add up?
Cash recyclers eliminate the possibility of human error resulting from a long day of work.
Cash Recycling: How Does It Work?
In your business, cash recycling devices essentially function as an on-site ATM or mini-bank. Despite not specifically being created for cannabis enterprises, they “fit the bill” nicely. Here’s how it works:
When you put money in the input slot, the cash recycler will sort the bills into cassettes according to value while checking for any forgeries. Legitimate bills are safely stored inside the machine until a withdrawal is made, while suspicious bills are automatically filtered out.
Cash recyclers can also be completely connected with your businesses’ POS system, as well as other hardware and software.
Cash Recycling Advantages
The efficiency and security gains from purchasing a cash recycler are the most obvious advantages. The cash recycler needs only a few minutes to complete what could take people an hour (that’s counting, verifying, and safely storing). Less time will be spent at the end of the day checking drawers, and staff will have more accurate counts at shift start and end. In comparison to conventional cash handling, cash recyclers can boost efficiency by as much as 90%.
Cash recyclers also increase store security, and ensure the safety of your employees (and you). Cash recyclers retain an access log and store money securely in an inside safe to deter theft that could endanger your personnel. Employers also have a duty to guarantee a secure working environment, including protection from external hazards. It’s not unreasonable to argue that you put a target on your business and staff if you have superfluous cash on hand.
The ROI of Cash Recycling
It won’t take long to see a sizable ROI once you start using your cash recycler. They can save you money in many other ways (in addition to the substantial decrease in payroll costs).
The float you need on hand for everyday operations (like producing change) is likewise decreased by cash recyclers. Less money is deposited due to the need for more float, which leaves less money available to pay for operating expenses.
Reducing costs like cash handling and CIT fees is another way that cash recycling helps you save money. You won’t need to allocate as much money for cash handling because recyclers automate cash management and require less work.
Cash recyclers work to remove obstacles and make running your business as safe, effective, and stress-free as possible, in contrast to federal regulations that aim to add needless stress and hurdles for cannabis business owners. You no longer need to worry about challenges like safely storing cash to lower the possibility of theft and physical harm to you and your employees. There are always dangers involved with starting a business, but they should never concern your safety.
Where federal regulations seek to add unnecessary stress and hoops to jump through for cannabis business owners, cash recyclers seek to break down barriers and make operating your business as safe, efficient, and stress-free as possible. You don’t need to concern yourself with barriers such as securely storing cash to reduce the risk of theft and physical harm to yourself and your employees. Starting a business always comes with risks, but those risks should never include your safety.
To create best practices for sound financial management, including bookkeeping, strategic support, and cash management guidance, Accounting for Green routinely collaborates with cannabusinesses. To learn how we can assist you with higher-level profitability, contact us today.