Managing any single business is difficult on its own, but when your business is divided into franchisee units, managing each and every outlet can be a daunting task. Keeping track and control of operational expenses can be extremely difficult without a set of processes in place.
Let’s look at a few tips franchisees can employee to manage petty cash expenses across outlets.
Stop mixing sales cash with petty cash
Sometimes retail outlets utilize funds from the cash counter for petty cash expenses. This practice makes it very difficult to track either expenses incurred or revenue generated in each store. The lack of visibility also means the practice leaves store cash vulnerable to pilferage. It’s very important to train store employees to maintain a separate petty cash locker which could be used for operational expenses leaving the sales cash untouched.
Digitize petty cash distribution
Distributing petty cash across outlets is another major hassle involved with operating franchisees. If you distribute too much cash to a store it remains vulnerable, too little means multiple trips to the store. Distributing cash through individual bank accounts would increase complexities during tax audits. Petty cash could be distributed digitally through petty cash disbursal solutions which allow for real-time distribution of funds across outlets and ease tax compliance.
Automate expense reporting
Most retail outlets maintain a manual record of operational expenses through paper vouchers, receipts or excel sheets. Maintaining these reports can be time consuming. Physically collecting these vouchers and verifying these expenses manually is also tedious and leads to delayed visibility of expenses. Automation of expense reporting could help save employees a considerable amount of time that they could use to drive more sales in the store. It could also give better control to franchise owners over spends and policy compliance.
Happay Petty Cash Management solution provides the benefits of digital cash distribution through Happay Prepaid Cards while providing real-time visibility and control over the expenses incurred. The solution also makes expense reporting fast, accurate and mobile. Stores using Happay Expense Management have managed to almost eliminate cash leakage and considerably improve store productivity.