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Jun 15, 2023

Cash Reconciliation

When counting your drawer at the End of the Day, you will be prompt to physically count your cash and checks against the computed drawer and create a deposit slip. There are times when your computed drawer will show higher or lower than what you physically counted.

 

Reasons:

Below are some of the reasons your cash drawer might be out of balance.

 

Not counting your drawer at the End of Day. – By not counting your cash drawer, if you are off, you are not likely to catch this until the next time you do count it, and will be more difficult to track and solve it.

 

 • Note: Even if you do not go to the bank every day It is suggested to remove the checks for deposit each day or it will continue to add cash to your drawer as carryover cash. This makes it easier to localize drawer issues.
 Incorrect Payment Method - Someone has taken a payment using an incorrect payment method. Ex. Payment by check and they selected Cash. While the drawer may balance overall, the cash and checks will be off and deposit slips become more difficult.
 Accounts Receivable Payments – When taken payment through Accounts Receivable, there is a box to check if you want that payment to be counted as part of the drawer or not. It is controlled by a parameter and defaults to checked or unchecked. If it is checked the payment better be in the drawer or you will be short. If it is unchecked and the payment is in the drawer, you will be over. Credit Card payments, by default, are counted as part of the drawer, as they are always direct deposit.
 Disbursement – Someone has either added/removed money from the cash drawer and did not do a disbursement to account for the funds. Never take money out or put money in the drawer without doing a disbursement.
 Incorrect Carry Over Cash/ Deposit – Even if the drawer balanced yesterday, an incorrect deposit will result in incorrect carryover cash the next day and you are in trouble from the get-go. The Drawer will be off unless corrected.
 Change Back – Employee incorrectly counted back to the customer, nothing you can do at this point. You will be off.
 Stolen - Someone, a customer or employee, stole cash out of the drawer. You are going to be short. Therefore, you count and balance the drawer.

* For those companies that use a separate, non-integrated means of processing credit cards you should always confirm the numbers in POR match what went through the CC processor. Incorrect entries, either in POR or at the Cc terminal will cause problems. See Check and CC report.

 

Corrections: You must cancel the End of day Process, make corrections, and start over.

If your cash drawer is showing higher than it actually is, then you will need to reduce the amount of cash, to balance out your drawer. Below are a few steps you can take to balance out your drawer:

 Recounting your Cash Drawer, many times it as simple as recounting the cash drawer. Recount your cash drawer to confirm you have the right counts. If possible, have someone else count it to confirm your numbers
 Verify your carryover cash and your previous bank deposit. If one was wrong it will affect your drawer make sure this was not included as part of the bank deposit. You can run your End of Day History Report. To put money back in, you can add cash, reduce bank deposits, from your counter system>tools>add/remove.
 No Deposit Made - If you did not do a deposit the night before, and your cash is higher, Match the amount of the cash you are over to the checks on hand. Create a manual deposit slip, this will reduce your drawer by the amount of cash you are over. (this would be the total amount of the checks). You would then take the checks to the banks along with the deposit slip.
 Disbursements - Create a disbursement reducing the amount of computed cash showing you have on hand. This will lower the cash amount in your drawer.
 Closing the Next Day, - your cash will be higher in Point of Rental showing an overage of cash. When closing the next day (if no deposit was made) then you would physically count your cash, showing you are going to be under or short that day. The cash drawer between the two days will balance itself out. (Note: One day over and the next day under).

If your cash drawer is showing lower than it should be, then you will need to increase the amount of cash, to balance out your drawer.

 Verify your carryover cash, make sure this was not included as part of the bank deposit. You can run your End of Day History Report. To put money back in, you can add cash, reduce bank deposits, from your counter system>tools>add/remove.
 Recounting your Cash Drawer – Many times it as simple as recounting the cash drawer. Recount your cash drawer to confirm you have the right counts. If possible, have someone else count it to confirm your numbers.
 Payments on Accounts – Someone might not have checked the box to put into the drawer when making a payment on account. Go back and unpack the account by the same payment method, do not check the box. Once removed reapply payment this time checking the box to put into the drawer.
 Payment on Contracts – Someone might have selected the incorrect payment method when taking payment. This would cause one payment method to be higher and the other to be lower. Unpay the contract by negative amount using the same payment method when taken the payment. Reapply payment as a positive amount with the correct payment method.
 Disbursements – Make sure someone did not remove money out of the cash drawer during the day. If so, create a disbursement to remove money from the drawer.

 

Tips

 

Here are a few reports you can run to track the over/under in your cash drawer.

 End of Day History Rpt – This is a total summary of your day’s business to include (bank deposit, carry over cash, over/under amounts, credit cards, and End of Day deposit). This will show you the over/under amount.
 Operator Edit Rpt – This is your audit trail of monies received or handed out. It will break down how much cash, checks, credit cards, each person has taken in for that day.
 Deposit Slip – This will be the deposit slip you may take to the bank and shows what monies the system was told were removed from the drawer. If it doesn't match what was taken from the drawer, there is your problem. You can get this off the End of Day history report as well.
 Check and Card Rpt – You should have a check for every entry on your report. If not, where is it? Look in the trash or behind the tray in the drawer. Do you have an extra Check? Someone did an incorrect payment method or did not apply to a balance.

 

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