How can I review a Christmas tree lot’s seasonal staff and cash handling?
Ask who works the lot, how they are hired and paid, and how cash moves from the customer to the bank. Look for daily tallies, matched deposits and more than one person handling money. Weak controls mean the reported sales may not be the whole story.
A tree lot often takes in a great deal of cash over a few weeks, which makes controls important. Ask who handles the till, who counts it, who deposits it and who checks the totals. If one person does all of those jobs, the risk is higher for you as the buyer.
Request the daily sales tallies and compare them with bank deposits for the whole season. Ask whether sales are rung in on a register or recorded by hand, and how discounts and refunds are approved. Gaps between tallies and deposits need an explanation. Then look at the staff. Ask how seasonal helpers are found, whether the same people return and how they are paid. Check payroll records against the schedule. Ask how the seller handles breaks, long shifts and cold weather. Staff who stay year after year are a strength. Finally, talk to your accountant about how to read the cash records, and ask the seller what changes they would make. The books should let you follow cash from the first customer to the last deposit. Ask too about the float at the start of each day, how large bills and card payments are handled, and where cash is kept overnight, since those details show how careful the routine is.
Key takeaways
- Match daily sales tallies to bank deposits for the whole season.
- Check that no single person handles all the money.
- Compare payroll with schedules for seasonal helpers.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to reduce employee turnover
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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