Cash recycling is a modern approach to cash management that streamlines the cash handling process. Cash recycling machines not only make cash handling processes much more efficient, but they also add an extra layer of security. Cash recyclers increase security by reducing the amount of superfluous cash on site.
One problem many cannabis businesses run into is limitations on banking. Currently, in the United States, less than 15% of all financial institutions offer services to cannabis-related companies. While that may sound like a lot, it’s only about 5% of the financial institutions in the country.
If you are lucky enough to find a bank that will work with you, how do you deposit your cash?
Due to travel limitations on cannabis-related cash from the Racketeering Transportation Act and tax implications from 280E, many cannabis business owners end up with mountains of cash and no way to transport it. You cannot transport cash or cannabis products across state lines, making banking especially challenging in some states. Armored car pickup can be expensive, and as federal regulations make it riskier to work with cannabis companies, many armored car services are refusing to do so.
Cash recyclers capture every transaction on camera. Until the cassette is removed, the machine is guaranteed to have the amount of cash reported.
It all comes down to your SOPs for transporting cash (and whether or not you adhere to them). And the more often you bring out bags of cash to your car, the more likely you are to attract risk from outside sources as well as the inherent challenges of cash management. Cash recycling mitigates these risks and the associated stress.
In addition to providing a secure option for on-premise cash storage and transportation to your bank, cash recycling:
- Eliminates time, labor, and errors associated with cash counting
- Eliminates need for additional cash on hand to support registers
- Eliminates need for change-making
What is Cash Recycling?
Cash recycling machines accept cash deposits, organize bills, and store your money safely until you make a withdrawal. It also makes correct change for every purchase. Think of your cash recycler as an extra employee that doesn’t take a salary, or a sick day, and is free from human error. It’s an asset that makes accurate bookkeeping a lot easier.
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. One recycler can handle up to three registers.
Automating your cash handling process also means significantly lower staff time when it comes to counting and recounting cash to balance your daily sales. How many times do you or a team member have to stay late after a closing shift, stuck in a seemingly endless cycle of recounting to figure out why the drawers aren’t adding up?
With cash recyclers, there is no risk of tired human brains miscounting bills after a hard day of work.
How Does Cash Recycling Work?
Cash recycling machines essentially work as a mini-bank or ATM on-premise in your business. Although they weren’t developed for cannabis businesses per se, they “fit the bill” perfectly. The process begins when you deposit cash into the intake slot. Then, the cash recycler will sort the cash by value into individual cassettes while simultaneously analyzing bills for suspected counterfeits. Suspect bills are filtered out automatically while safe bills are securely stored inside the machine until a withdrawal is made.
Cash recyclers are also able to be fully integrated with your businesses’ POS and other hardware and software.
Benefits of Cash Recycling
The most obvious benefits of investing in a cash recycler are increased efficiency and security. What could take humans an hour to count, verify the count, and securely store the cash would only take the cash recycler minutes. This means fewer hours spent verifying drawers at the end of the day, and more efficient shift start and end counts for employees. Overall, cash recyclers increase efficiency by as much as 90% over traditional cash management.
Cash recyclers also tighten up store security, protect employee safety, and protect you. Cash recyclers have an internal safe to store money securely and keep an access log, discouraging theft which puts your employees in harm’s way. Additionally, employers have a responsibility to provide a safe work environment, including from outside threats. If you have mountains of cash lying around, a case could be made that you painted a target on your store and employees.
Cash Recycling ROI
After you begin cash recycling, it won’t take long to see significant ROI. In addition to the significant cost reduction in payroll, there are several other ways that they save you money.
Cash recyclers also reduce the amount of float you need on hand for day-to-day operations like making change. The more float you need on hand means less cash deposited, which means less available cash to cover the cost of operations.
Another way cash recycling saves you money is by reducing fees such as cash handling fees and CIT fees. Since recyclers automate cash management and require less labor, you won’t have to budget as much for cash handling,
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. No longer do you need to concern yourself with hurdles like 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.
Accounting for Green frequently partners with cannabis companies to develop best practices for financial health, including bookkeeping, strategic support, and cash management advice. Contact us today to find out how we can help you with higher-level profitability.