Cash handling procedure

Purpose

To make sure cash is handled the same way by everyone, every transaction can be accounted for, cash is kept secure, and any difference is found and explained the same day.

Scope

All cash received, held and banked by the business, including tills, floats, petty cash and safe drops, at every site. It applies to every staff member who handles cash.

Responsibilities

Definitions

Float

The set amount of change in a till at the start of a shift.

Safe drop

Taking excess cash from a till during the day and putting it in the safe, recorded and witnessed.

Discrepancy

A difference between the cash counted and what the point-of-sale system says should be there.

What you need

• A point-of-sale system or cash register, with a till per cashier where possible
• A safe, with limited access
• Cash count sheets and safe drop records
• Deposit bags and the bank deposit book

Procedure

1. Issue and check the float

   The shift manager gives each cashier a counted float, and the cashier counts it again and signs for it before their first sale.

2. Take payments correctly

   Count the customer’s cash in front of them, leave it on the till until the change is given, and count the change back. Always give a receipt.

3. Keep to one cashier per till

   Only the assigned cashier uses their till. Lock the till or log out whenever you step away.

4. Get approval for refunds and voids

   Refunds, voids and no-sale openings need a manager’s approval and a reason recorded in the system.

5. Keep to the till limit

   When the till goes over the set limit, the shift manager does a safe drop, recorded and witnessed.

   Caution: Never count or move cash where customers can see it, and never keep more than the limit in the till.

6. Count the till at the end of the shift

   Count the till with a second person present, away from customers, and record each denomination on the count sheet. Take out the float for the next shift.

   • Count notes and coins by denomination
   • Count card slips, vouchers and other payments
   • Take out the float and record it separately
   • Both people sign the count sheet

7. Reconcile to the point of sale

   Compare the cash, card and other takings with the point-of-sale report. Record any difference and its reason on the count sheet.

8. Investigate discrepancies

   Check for errors such as a missed refund, wrong change or a miskeyed sale. Report any difference above the set limit, or a pattern of small ones, to the owner the same day.

   Caution: Don’t accuse anyone. Record the facts and let the owner investigate.

9. Bank the takings

   Prepare the deposit, recorded on the deposit slip and count sheet, and bank it at varied times and by different routes where possible.

   • Prepare the deposit away from customers
   • Keep the deposit in the safe until it’s taken to the bank
   • Match the bank’s receipt to the count sheet the next day

10. Secure the cash

    Keep the safe locked, limit who knows the code, and change the code when someone with access leaves.

Records

• Float sign-offs, count sheets and point-of-sale reports for every shift, kept for as long as your tax rules require.
• Safe drop records and refund and void approvals.
• Bank deposit slips, matched to the takings.
• Discrepancy reports and their outcomes.

Related documents

• Restaurant or store opening and closing checklist
• Refunds and returns policy
• Month-end close checklist
• Complaint handling procedure

Revision history