A cash reconciliation is the process of verifying the amount of cash in a cash register as of the close of business. The verification can also take place whenever a different clerk takes over a cash register. The procedure to follow for this cash reconciliation is as follows:
- Obtain a daily reconciliation form on which to document the cash reconciliation.
- List on the form the amount of beginning cash in the cash drawer, which may be broken down by individual type of bill and coin.
- Close out the cash register.
- List on the daily reconciliation form all cash collected, which may be broken down by individual type of bill and coin.
- Using individual cash and receipts in the cash register, summarize on the form the amount of receipts by cash, check, coupon, and credit cards.
- Using the cash register tape, summarize on the form the amount of gross sales, voided sales, and sales returns to arrive at a net sales figure.
- Using the cash register tape, summarize on the form the amount of receipts by cash, check, coupon, and credit card.
- Compare the totals on the form for cash, checks, coupons, and credit card receipts that are based on individual receipts and that are based on the cash register.
- Reconcile the differences between the two columns.
- Sign and date the form, and submit to a supervisor for review.
- The supervisor reviews the reconciliation form, as well as any explanations for discrepancies, and approves the form if he or she agrees with it.
A sample of the reconciliation portion of the daily cash reconciliation form is shown below.
Cash Reconciliation Form
+ (over) / - (short)
|Cash collected||$515.00||Cash sales||$518.00||-$3.00|
|Checks collected||84.50||Check sales||78.00||+6.50|
|Credit cards collected||308.20||Credit card sales||308.20||0|
|Coupons collected||0||Coupon sales||1.50||-1.50|
|Total collected||$907.70||Total recorded||$905.70||+$2.00|
A cash reconciliation is not the same as a bank reconciliation, where you match the period-end bank account statement provided by your bank with your internal records for the same account, and adjust your internal records as necessary.