How to Do a Daily Cash Drawer Count and End-of-Day Till Reconciliation

A daily till reconciliation compares the physical cash sitting in the drawer against what the POS recorded for cash sales, refunds, and the opening float. Count the drawer, subtract the starting float, compare that figure to the POS's cash-sales report for the shift, and log any variance immediately — a €2 gap ignored for a month is a much bigger problem than a €2 gap caught and traced the same night.

The step-by-step till-count procedure

1. Start with the opening float. Confirm the float amount placed in the drawer at the start of the shift matches what was logged — this is your baseline, not part of the day's takings.
2. Count every denomination separately. Notes and coins each get their own line so a miscount in one denomination doesn't get buried inside a single total.
3. Pull the POS's cash-sales report for the same period. Most POS systems separate cash, card and other tenders automatically — use the cash-only figure, not total sales.
4. Calculate the variance. Counted cash − opening float should equal the POS's recorded cash sales minus any cash refunds paid out. Anything left over is your variance, positive or negative.
5. Log it the same day, every day. Even a zero variance is worth recording — a paper trail of “zero, zero, zero, then suddenly €15 short” is far easier to investigate than a gap discovered weeks later with no baseline.

A simple cash-count worksheet

Keep the columns this granular even for a small drawer — denomination-by-denomination counting is what actually catches a misread note or a coin roll that was short, not a quick eyeball total.

The most common causes of a till variance

• Uncounted tips left in the drawer. Cash tips mixed into the same drawer as sales cash will always throw off a reconciliation unless they're separated and logged before the count.
• An incorrect starting float. If yesterday's closing float wasn't reset to the standard amount, every calculation today starts from a wrong baseline.
• A refund keyed to the wrong tender. A card refund accidentally processed as cash (or vice versa) creates a variance that has nothing to do with the physical drawer at all — check the POS's refund log first when the numbers don't add up.
• A till left open or unattended between shifts. Even a well-meaning colleague borrowing float for another register can create a gap that looks like theft but isn't.

Is a small variance a training issue or a security issue?

A small, inconsistent variance (sometimes over, sometimes under, never the same amount) is almost always a counting or process problem — usually solved with a clearer worksheet and a second person double-checking the count. A variance that's consistently in one direction, grows over time, or clusters around one specific shift or staff member is worth a quieter, more direct look before assuming it's innocent. The difference matters: treating a training issue as an accusation damages trust for no reason, and treating a real pattern as “just counting mistakes” lets a real problem continue.

FAQ

How often should a small business reconcile its till?

At the end of every shift that uses cash, not just once a day. A single daily reconciliation across two shifts makes it impossible to tell which shift a variance came from.

Should the same person count the till and process the day's cash sales?

Where staffing allows, a second person verifying the count reduces both honest mistakes and the temptation for dishonest ones — this is standard practice even in very small operations.

What should I do the moment I find a variance?

Recount once before assuming it's real, then check the POS's transaction and refund log for the shift — a clear POS system that separates cash, card, and refund totals automatically makes this a two-minute check instead of a guessing game.