The cash register is in almost every store around the world and has been for generations. Everyone knows what a cash register is in today’s world. However, the cash register of years past is vastly different than those found in modern times. Today’s modern POS systems are pretty powerful and do just about everything. But, still, you need a process to handle and account for all of the store’s cash. To prevent mishandling and implement other safeguards, these internal controls are vital. This is where you collect your funds to keep your business growing and succeeding and where you keep track of your inventory so you always have products on hand. The cash register is truly the engine behind your business. This crucial process must be reliable and create an environment of operational efficiency along with bringing assurance of reliable accounting records. Not only does the mishandling of cash cost the business, but it is also one of the main contributors to shrinkage and loss in the store. Theft is the second common cause, and it is made possible through an improper procedure of control.
Cash registers play an important role in the process of counting money, reconciling receipts, and balancing the drawer, which accounts for all of the day’s transactions. Modern POS systems even offer step-by-step instructions that will balance the cash drawer for employee guidance. This helps reduce errors. Many store policies are created to facilitate further a cash management system that would ally in many areas. Cashiers have to make sure that everything adds up; otherwise, things can go downhill quickly.
How to balance a cash register
At the start of each shift, individuals are given the responsibility of counting the contents of a register to make sure of the exact amount of cash that is present at that time, as the cashier will be held accountable at the end of their shift. At the end of their shift, the contents must be counted again and given a comparative glance to make sure everything is balanced. The register is balanced at the end of each shift to ensure that money has amounted correctly, none has been stolen, and no mistakes have occurred. Employees must understand the importance of balanced books. Another employee must be present in some stores when the cash register is balanced. This ensures accountability and reduces the likelihood of employee theft. When all of the proper checks and processes have been accomplished, the cash will then go to the person in charge who will deposit it into the bank for the business at the end of the day, typically this person is a manager.
Why is it important to balance a cash register?
Not only does balancing the cash register bring equilibrium to the cashier, but it also gives further insight into how the money flows in or out. The cash register acts as a monitoring system of money movement; if any is missing unexpectedly, it may indicate theft or carelessness. The key to success is being precise and providing accurate data regarding the cash flow. Regarding safety, a huge amount of money is never kept in the register. A minimum amount is kept to ensure safety in case of burglary or theft. Avoid keeping too much cash on the floor, as it can be dangerous and prone to larceny (aka theft).
In addition, an entire sales report can be pulled up in an instant during any part of the shift. Documentation makes the cash drawer safe from mistakes and maladministration, so it always works in favor of the business.