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Cash Drawer Management

Proper cash drawer management ensures accurate accounting and helps prevent losses from cash handling errors or theft.

Cash Drawer Overview​

Cash drawer management includes:

  • Opening the drawer with starting cash
  • Recording cash sales throughout the day
  • Handling change and bills
  • Closing and reconciling at end of day
  • Generating reports
  • Depositing cash
Physical vs Digital

BookWish POS tracks digital records of cash sales. You're responsible for physical cash handling and security at your store.

Opening the Drawer​

Starting Cash (Float)​

Begin each day with starting cash (the "float") for making change:

Typical Starting Cash: $100-$200

  • Small bills: $50-$100 (ones, fives)
  • Larger bills: $50-$100 (tens, twenties)
  • Coins: $10-$20 (quarters, dimes, nickels, pennies)

Opening Procedure​

  1. Count Starting Cash: Count and verify starting amount
  2. Record Amount: Note starting cash amount
  3. Organize Bills: Arrange by denomination
  4. Secure Drawer: Ensure drawer is properly secured
  5. Begin Sales: Ready to accept cash payments
tip

Use the same starting amount each day to make reconciliation easier. Keep excess cash in a safe, not in the register.

Recording Cash Sales​

During POS Transaction​

When customer pays with cash:

  1. Complete sale in POS system
  2. Select "Cash" as payment method
  3. Tell customer total
  4. Accept cash from customer
  5. Make change if needed
  6. Give receipt
  7. Place cash in drawer

The POS automatically records:

  • Sale amount
  • Payment method (cash)
  • Timestamp
  • Staff member

Cash Handling Best Practices​

✓ Count in view: Count cash in front of customer ✓ Announce amount: State how much customer gave you ✓ Count twice: Once accepting, once giving change ✓ Organize bills: Keep bills organized by denomination ✓ Secure immediately: Put cash in drawer right away ✓ Close drawer: Don't leave drawer open between customers

Making Change​

Steps:

  1. Announce total (e.g., "$23.45")
  2. Customer gives cash (e.g., $40)
  3. Announce "Out of $40"
  4. Calculate change ($16.55)
  5. Count change back to customer
  6. Thank customer

Counting Back:

  • Start with purchase amount: "$23.45"
  • Add to reach next dollar: "+ 55¢ makes $24"
  • Add bills to reach amount given: "+ $16 makes $40"
  • Hand change to customer: "Here's your $16.55 change"

Cash Management During Day​

Organizing Cash Drawer​

Keep cash organized:

  • Bills: Facing same direction, sorted by denomination
  • Coins: In coin tray sections
  • Large bills: Under cash tray or remove to safe
  • Receipts: In designated area (if needed)

Handling Large Bills​

When customers pay with $50 or $100 bills:

  1. Check bill for authenticity (if policy requires)
  2. Make change if sufficient
  3. If insufficient, ask for smaller bills
  4. Consider moving large bills to safe periodically

Removing Excess Cash​

When cash builds up during busy times:

  1. Count excess cash
  2. Record "cash drop" amount and time
  3. Put in safe or locked location
  4. Note amount in drop log
  5. Continue with reduced drawer amount
Security

Never keep more than necessary in the drawer. Regularly move excess cash to a safe to reduce theft risk.

Handling Cash Shortages​

If you run low on change:

  1. Break larger bills from sales
  2. Get change from safe
  3. Exchange with nearby business
  4. Visit bank for change

Closing the Drawer​

End of Day Procedure​

At close of business:

  1. Complete all transactions: Ensure no pending sales
  2. Close POS: Finish last sale of day
  3. Lock doors: Prevent new customers
  4. Count cash drawer: Count all bills and coins
  5. Calculate total: Sum all denominations
  6. Compare to records: Check against POS report
  7. Record results: Document cash count and variances
  8. Prepare deposit: Ready cash for bank
  9. Secure cash: Lock in safe until deposit

Counting Cash​

Count Twice: Always count cash twice to avoid errors

Organized Counting:

  1. Remove all cash from drawer
  2. Sort by denomination
  3. Count each denomination separately
  4. Record counts on sheet
  5. Calculate total
  6. Count again to verify

Count Sheet Template:

Date: _________  Staff: _________

Pennies  × $0.01 = _______
Nickels  × $0.05 = _______
Dimes    × $0.10 = _______
Quarters × $0.25 = _______
$1 bills × $1    = _______
$5 bills × $5    = _______
$10 bills × $10  = _______
$20 bills × $20  = _______
$50 bills × $50  = _______
$100 bills × $100 = _______
                   ═══════
Total Cash Count:  $_______

Reconciliation​

Reconciliation is comparing physical cash to POS records.

Reconciliation Process​

  1. Get POS report: View daily cash sales total
  2. Count drawer: Count all physical cash
  3. Subtract float: Remove starting cash amount
  4. Compare totals: Physical cash minus float vs. POS cash sales
  5. Calculate variance: Difference between physical and recorded
  6. Document: Record variance and investigate if needed

Example Reconciliation​

Starting Cash (Float):        $150.00
Ending Cash Count:            $783.50
─────────────────────────────────────
Cash Sales (Physical):        $633.50

POS Recorded Cash Sales:      $625.00
─────────────────────────────────────
Variance:                     + $8.50 (Over)

Understanding Variances​

Over: More cash than POS records

  • Customer paid more than charged
  • Math error in customer's favor
  • Unrecorded sale
  • Miskeyed price (lower than actual)

Short: Less cash than POS records

  • Gave too much change
  • Math error in your favor
  • Missing cash (theft or loss)
  • Miskeyed price (higher than actual)

Acceptable Variance​

  • 0-$1: Rounding differences, minor errors
  • $1-$5: Review carefully, check for patterns
  • $5+: Investigate thoroughly, retrain if needed
Large Discrepancies

Repeated or large variances may indicate:

  • Need for staff training
  • Math errors
  • Theft or fraud
  • System issues

Investigate promptly and document findings.

Cash Reports​

Daily Cash Report​

Generate daily reports showing:

  • Total cash sales
  • Number of cash transactions
  • Average cash transaction
  • Starting cash
  • Ending cash
  • Net cash collected
  • Variance (if any)

Accessing Reports​

To view cash reports:

  1. Go to Store Management
  2. Tap Reports or Sales Reports
  3. Select Daily Cash Report
  4. Choose date
  5. View/export report

Weekly/Monthly Reports​

Review longer-term reports for:

  • Cash sales trends
  • Busiest days for cash sales
  • Cash vs. card ratio
  • Variance patterns
  • Staff performance (if applicable)

Bank Deposits​

Preparing Deposits​

When ready to deposit cash:

  1. Count deposit amount: Total cash minus next day's float
  2. Fill out deposit slip: Bank's form with amount breakdown
  3. Place in deposit bag: Secure bank bag
  4. Lock bag: Use bank's locking mechanism
  5. Take to bank: Deposit during business hours or night drop

Deposit Record Keeping​

Document each deposit:

  • Date and time
  • Amount deposited
  • Staff member who prepared
  • Bank receipt
  • Match to POS records

Deposit Frequency​

Daily: Recommended for most stores

  • Reduces theft risk
  • Improves cash flow
  • Easier to track

Multiple times per day: High-volume stores Weekly: Very low-volume stores (not recommended)

tip

Daily deposits improve security and ensure better cash flow for your business.

Security Best Practices​

Drawer Security​

✓ Lock when unattended: Even for short breaks ✓ Limit access: Only authorized staff ✓ Keep closed: Open only when needed ✓ Block view: Position to prevent customer view inside ✓ Remove excess: Regular cash drops to safe ✓ Count privately: Don't count cash in public view

Cash Handling​

✓ Verify bills: Check large bills if concerned ✓ Count carefully: Avoid errors that look like theft ✓ Two-person counts: For closing and deposits ✓ Document everything: Paper trail prevents disputes ✓ Security cameras: Monitor cash handling area

Staff Training​

Train all POS staff on:

  • Making change correctly
  • Organizing drawer
  • Recognizing counterfeit bills
  • Proper cash handling procedures
  • Closing and reconciliation
  • Security protocols

Troubleshooting​

Cash Drawer Won't Balance​

If you can't reconcile the drawer:

  1. Recount: Count physical cash again
  2. Check math: Verify calculations
  3. Review transactions: Look for unrecorded sales
  4. Check for voids: Were any sales voided?
  5. Ask staff: Did they notice any issues?
  6. Document variance: Record and investigate later

Missing Cash​

If cash is missing:

  1. Verify count: Recount carefully
  2. Check safe: Was cash dropped during day?
  3. Review video: If cameras available
  4. Ask staff: Did anyone remove cash?
  5. Document incident: Write detailed report
  6. Investigate: Determine cause

Repeated Shortages​

If drawer is consistently short:

  1. Identify pattern: Same staff? Same time of day?
  2. Retrain staff: Review cash handling procedures
  3. Observe: Watch cash handling process
  4. Consider causes:
    • Math errors (training issue)
    • Theft (security issue)
    • System issues (technical problem)
  5. Take action: Based on cause identified

Cash Handling Policies​

Establish Clear Policies​

Document policies for:

  • Who can access cash drawer
  • How to make change
  • When to do cash drops
  • Closing procedures
  • Deposit procedures
  • Variance investigation thresholds
  • Counterfeit bill handling

Communicate Policies​

Ensure all staff know:

  • Cash handling procedures
  • Their responsibilities
  • Consequences of violations
  • Who to ask if questions

Update Policies​

Review and update policies:

  • Annually at minimum
  • After incidents
  • When adding new staff
  • When procedures change

Mixed Payment Methods​

Cash + Card​

For split payments:

  1. Record card portion first
  2. Complete card transaction
  3. Note remaining balance
  4. Accept cash for remainder
  5. Make change if needed
  6. Complete sale in POS

Cash + Trade Credit​

See Trade Credit for applying store credit with cash payment.

Reporting and Analytics​

Key Metrics​

Track these cash metrics:

Daily:

  • Total cash sales
  • Cash transactions count
  • Average cash transaction
  • Cash as % of total sales
  • Daily variance

Monthly:

  • Cash sales trends
  • Cash vs. card ratio changes
  • Total variances
  • Highest/lowest cash days

Using Data​

Use cash reports to:

  • Ensure accurate accounting
  • Identify training needs
  • Detect theft or fraud
  • Understand customer preferences
  • Optimize change fund amount
  • Schedule bank deposits

Next Steps​