To reconcile a cash drawer, calculate expected cash (opening float + cash sales − cash refunds − paid-outs + pay-ins), count the drawer by denomination, record the difference as over or short, and investigate any pattern.
Reconciling a cash drawer means comparing the cash that should be in the till with the cash that actually is, and explaining any difference. At the end of each day or shift, you work out the expected cash from the opening float and the day’s cash transactions, count the drawer, and record whether it is balanced, over or short. Done every day, it takes about ten minutes and catches mistakes while people still remember what happened. The method works with any currency and any till.
The formula for expected cash
Everything starts with one calculation. Expected cash = opening float + cash sales − cash refunds − paid-outs + pay-ins. The cash float is the cash put in the drawer at the start of the shift for making change. Cash sales are only sales paid in cash — card and mobile payments never enter the drawer. Paid-outs are cash taken from the drawer for business costs, such as paying a delivery driver. Pay-ins are cash added during the day, such as extra change from the bank.
| Line | Amount | Running total |
|---|---|---|
| Opening float | + $150.00 | $150.00 |
| Cash sales | + $1,284.50 | $1,434.50 |
| Cash refund (returned item) | − $12.00 | $1,422.50 |
| Paid-out (milk delivery) | − $40.00 | $1,382.50 |
| Pay-in (extra coins) | + $0.00 | $1,382.50 |
| Expected cash | $1,382.50 | |
| Counted cash | $1,377.50 | |
| Difference | − $5.00 (short) |
A negative difference means the drawer is short; a positive one means it is over. Both matter. A drawer that is over usually means a customer was given too little change or a sale was recorded at the wrong amount, which is a customer-service problem even if it looks like good news.
Step-by-step: closing the drawer
- Stop taking cash sales on that drawer, or move the next customers to another till.
- Print or open the day’s summary (often called a Z report) showing cash sales and refunds.
- Gather paid-out and pay-in slips from the day. Each should have an amount, a reason and a signature or initials.
- Count the cash by denomination, notes first, then coins, writing each total down.
- Add up the count and compare it with expected cash.
- If the difference is outside your tolerance, recount before investigating.
- Record the counted amount, the difference and any explanation.
- Set aside the float for tomorrow and prepare the rest for deposit.
Counting by denomination
Counting by denomination is slower than counting a pile, but it is accurate and easy to check. Use a count sheet with one line per note and coin value in your currency. Here is the worked example continued, using illustrative denominations:
| Denomination | Quantity | Total |
|---|---|---|
| $50 | 10 | $500.00 |
| $20 | 28 | $560.00 |
| $10 | 17 | $170.00 |
| $5 | 19 | $95.00 |
| $1 | 41 | $41.00 |
| Coins (all values) | — | $11.50 |
| Counted total | $1,377.50 |
Preparing the deposit and next float
Once the count is recorded, separate the float for the next shift and deposit or safe the rest. Deposit = counted cash − next opening float. In the example, if tomorrow’s float is again $150, the deposit is $1,377.50 − $150.00 = $1,227.50. Keep the float in a sensible mix of small notes and coins so the first customers can be given change.
Choose a float that covers your typical change needs without leaving more cash in the till than necessary. If you regularly run out of small notes before midday, the float is too small or the mix is wrong; if most of it is still untouched at close, it can be reduced.
Investigating a difference
Most differences have ordinary causes. Before suspecting anyone, work through the common ones, roughly in order of how often they happen.
| Cause | Usually shows as | How to check |
|---|---|---|
| Wrong change given | Short or over by a round amount | Look for one large cash sale near the difference |
| Card sale recorded as cash | Short by the sale amount | Compare card terminal total with card sales recorded |
| Cash sale recorded as card | Over by the sale amount | Same check, in reverse |
| Paid-out with no slip | Short by a specific amount | Ask who paid a supplier or bought supplies |
| Refund given but not recorded | Short by the refund amount | Check returned items against recorded refunds |
| Float counted wrongly at opening | Short or over, same as the opening error | Recount the float before the next shift |
| Counting error at close | Any amount | Recount by denomination |
Comparing your card terminal’s end-of-day total with the card sales in your till is one of the most useful checks, because a mis-keyed payment method moves money between cash and card on paper while the real total stays the same. If the cash is short by $18 and card is over by $18, you have found it.
Set a tolerance and track patterns
Decide in advance what size of difference needs an explanation — for example, anything beyond $5, or beyond a small share of the day’s cash takings. Small differences below the tolerance should still be recorded, because the pattern is what tells you something. A drawer that is $2 short once is noise; a drawer that is $2–$4 short on every shift one person works is a conversation worth having, calmly and with the records in front of you.
Shift changes
If two people use the same drawer in one day, reconcile at the handover as well as at close. The outgoing person counts, the incoming person checks, and both note the figure; the second shift then starts with that amount as its opening balance. Without a handover count, a difference at close cannot be traced to either shift, and nobody learns anything from it.
Controls that make reconciliation easier
- One person per drawer per shift, so a difference can be traced to a shift rather than a team.
- Paid-outs only with a slip that records the amount, reason and who took it.
- Limited permissions for voids, refunds and discounts, which are the usual routes for cash to disappear.
- Two people at close for larger drawers: one counts, one checks.
- Regular cash drops to a safe during busy days, so the drawer never holds more than it needs.
- A written record of every close, kept for months, not days.
Doing this in SageBizet
The SageBizet cash drawer opens a session with a float and shows live expected cash — the float plus cash sales recorded at the till — throughout the day. At close, you enter the counted amount and the difference is recorded as over or short, with a history of every session, a “clean close” streak for balanced closes, and a notification when a drawer does not balance. Because SageBizet’s expected cash is float plus cash sales, note any paid-out taken from the drawer at close and record it as an expense so your profit figures include it. Staff roles let you decide who can open and close a drawer, void sales or give discounts.