Risky Issues of Cash Receipts
Record keeping is an essential part of businesses. To keep complete record of business transactions, cash receipts are used. Cash is taken by the businesses as a form of payment. To safely record cash transactions, cash registers are used. Cash receipts are easy to prepare regarding any business. A cash receipt can be prepared by acquiring help from any pre-designed Cash Receipt Template. Non-retail businesses use cash receipts without having cash registers. Some risky issues are there about using cash receipts:
- If you are using carbon copy receipt book for issuing cash receipts, these receipts are at high risk to be duplicated as these can be got from any office supply store. These receipts are easy to duplicate by scanning and altering them in a computer. Such people are there who are able to commit frauds and due to advancement in technology, they can duplicate these receipts relatively more frequently and more easily.
- Cash is most difficult thing to save and most difficult thing to prove your own. In case of having several employees collecting cash, you are at high risk of having your cash lost or stolen. When you accept cash as a method of payment, you take on a burden of having your employees handle cash.
- In dealing with cash, you have only the record of transactions which your company has recorded and receipts you provide your customers. If you use a check, debt card or credit card, third party becomes involved in this transaction. In such conditions, if any dispute arises over the transaction, third party involved in transaction will clearly and quickly settle this dispute. On the other hand, in case of conducting cash transaction if your customer claims that he paid more or less than indicated records, you can make this situation defensive in your favor by only records and receipts you made for disputed transaction. You will have no third party to clear up potential disputes of such nature.
Before going to use cash receipts, few measures if considered will reduce the risks of fraud and theft. You should separate each employee’s cash receiving duties, monitor handling and storing of cash, deposit the cash into bank as quickly as possible and should have cash transactions monitored by a supervisor who is not directly involved in those employees. In order to prevent customer fraud, having customers’ signs and date at their receipts will benefit you. You can also consider developing a color coding system that only your staff is familiar with.