Cash Management Overview

One of the top reasons you bought a Point-of-Sale system is to help keep track of your money, we're guessing!   If you follow recommended best practices for cash management, you'll be able to track every penny and get a clear picture of how your business is operating. 

Let's start with an overview of how cash flows through your system.   With 1 or more POS stations, you've got money coming in and out of the drawer all day long.


Every time money is added or removed from the drawer, it should be recorded in the POS system.  This will ensure that all money is accounted for properly. 
Here's how it works: 

Starting Balance:  At the beginning of each shift, most drawers have a starting balance of small bills and change.   Configure yours here.

Ringing up orders:  Of course, as orders are run into the register, they will update the balance of that drawer. Each register station should be assigned to a drawer.  Learn how to do that here.

Assign Bank:  When drivers & servers start their shift, you might want to assign them some cash to help them make change. That cash may come out of a register (Configure it here). 

Driver / Server Drop:  If drivers or servers have too much cash on hand, they may make a drop to the register or main safe.  

Driver Close:  If you have deliveries, the drivers will collect money from customers. At the end of their shift, a Driver Close will transfer that money. This might transfer to a register, or directly to the safe (Configure that here).  Alternatively, Driver Return & Pay will have drivers close to a register after each delivery.

Server Close:  If you have servers, they might collect money from customers and hold on to it until the end of their shift, when a Server Close will transfer that money to a register or the main safe (Configure that here). 

Register Drop:  As the register gets loaded with cash, you may make a register drop to transfer some to the safe.

Transfers:  A register may get low in cash, so money can be transferred from the safe to the register or from one register to another.

Pay Tips:   If a cashier or server has tips on transactions that were closed to the register, you may want to pay those tips out before the register close.

Paid In:  Sometimes, you receive payments for things unrelated to orders, such as a deposit or payment on account.  These can be recorded as Paid Ins.

Paid Out:  Sometimes, you need to make a payment for something out of your drawer, such as to pay a vendor or buy supplies. These can be recorded as Paid Outs.

Wow, that is a lot to keep track of!  Your drawer will always keep a running total of exactly how much cash & total tenders it has in it.  You can see this at any time on the Registers & Cash screen

At the end of the shift (or multiple times throughout the day), you'll Close Register This process will pay tips out if any are owed, let you count the actual cash in the register, leave the desired starting balance, and transfer the rest to the safe.  If the actual cash doesn't match the expected cash, an over/short will be recorded. 

Be sure to close each register every night after all tickets are closed and driver/server closes are complete.  You can see the results on the Register report, which gives details about exactly what happened with each cash drawer.

If you've done it correctly, all your money will now be in the Main Safe (at least according to the system, even if you haven't physically put the money in the safe!).  Each drawer has its starting balance only.    

Now, perform an End of Day Deposit.  This will take all the money in the safe and record a deposit, removing it from the system and only retaining the safe's desired starting balance. (configure that here).    You'll be able to review this on the Bank Deposit  report.

Once your deposit is complete, you can batch out your credit cards, to ensure that money is delivered to the bank!

If you follow these procedures daily, you'll be confident in knowing that your cash is secure - and you'll be able to spot any problems before they become too serious.   For example, if you're having a lot of over/shorts, review this article to learn more about possible causes.

Depending on your personal style and your team, you may have a relaxed, moderate or very secure approach to managing your restaurant.   Check out the chart below to see how your practices may fit.  A relaxed style may not have as much insight and control over cash. 

Relaxed

Moderate

Very Secure

  • Closes register nightly
  • Allows any employee to do a void or a discount
  • Rarely looks at reports or alerts
  • Only does deposits every few days
  • Only closes credit batch every few days
  • Lets any employee transfer cash or perform a register close
  • Lets servers & drivers complete their own shift close


  • Closes register after lunch and dinner
  • Requires manager authorization for voids and certain discounts
  • Monitors coupon reports for “late application”
  • Requires a nightly deposit and closes credit card batch
  • Requires managers to approve shift closes & register closes or transfers


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