End Of Day Banking
The end of day banking is the process of consolidating and counting your cash at the end of the day. It should be quite simple but does get a lot of people confused still, but you should always keep the following formula in mind
Cash at end equals Cash at start plus Cash added less Cash taken away.
Setting up your cash drawer float
The cash at the start of the day is known as the float. Most commonly the float will be the same each morning and the amount to be banked will be calculated on the basis of getting back to this value. This can be set up on a per location basis by going to
1. Click Settings from the left hand menu
2. From the Business Setup section of the Settings screen choose Manage Locations
3. Click on the location you wish to set the float for
4. Scroll down to the Financial section and you will see a couple of options.
The first option is Till Float. If you want to have the same float at the start of every day then set the value here.
The second option, Till float should come from previous safe balance, should be used if you remove all your cash from the drawer at the end of the day and move it to a safe. Then the next day the amount you have entered the prior day in the Transfer To Safe value will be automatically the float. This is useful if your float is changing every day.
Lastly, the option Automatically calculate commissions and tips in banking, if ticked will take these values from your sales figures for the day and enter them into the appropriate fields when performing the banking.
Performing the banking
The banking or cash drawer balance is most often performed at the end of each day, but can be performed more often or every few days if you wish, dependent on how much cash you tend to hold. The steps to perform it are
- To start the End-Of-Day Banking process, click on the Sales menu option.
In the Sales screen, click on the End of Day Banking link located in the right-hand side menu.
The Banking screen displays three major sections. The Banking Details section as shown below is financial summary of all transactions within the given period (Starting and Ending Date an Time) that are listed in the Receipts to banked section.
The Starting Date and Time defaults to when the previous End of Day Banking process was performed and the Ending Date and Time defaults to the Current Date and Time. The fields in this section will largely self calculate
The Total Sales will be total of all the sales that are in the Receipts to be banked section. Under normal circumstances you would want to bank all of them and they will all be ticked by default.
The next few fields are related to cash movement throughout the day. It is important to record this cash movement as without it you cannot accurately predict what the end of day cash value should be. The Starting Cash in Drawer is the till float, what you have at the start of the day. It may be a fixed amount, or come from the previous days safe transfer depending on how you configured it for the location.
Cash added will be any cash added to the till via sales or another reason. If there is any reason for cash to be added to till during the day you should use the No Sale option on the sales screen. Similarly, the Cash Out field is any cash removed from the till. This might be change given to the client or could be something like cash taken out for the business, such as petty cash. You should use the No Sale option for any cash taken out here as well.
The next two fields are Tips and Commission Paid Out. It is common for staff to have their tips and commissions paid out as cash at the end of the day. You can enter those values via the No Sale function as they are paid during the day and they will be automatically brought over to these fields. Alternatively, you can click the Calculate button next to them and it will calculate the amounts based the sales for the day and the staff commission rates and tips entered.
Finally, the last field is the amount transferred to the safe. If at the end of the day you move the cash to a safe, rather than bank it should be entered here. If you are transferring the full amount you should take the value from the Cash & Cheques to be deposited value and enter it here.
You could enter a partial amount if you are just transferring some of it to the safe and some to the bank.
Counting the cash
Once you have entered all the cash ins and outs for the day you can then count the cash in the drawer. This is a pretty simple task of counting each coin or note and entering the amount counted into the field with it's denomination.
Ideally once you have counted them all it should match what is expected in the drawer, the Counted Under/Over will display the difference in red if there is a problem. The problem can only be one of two reasons, the Cash drawer amounts counted are wrong, or the cash ins and outs in the banking details are wrong. It is most common for the banking details to be wrong, where cash has been removed from the drawer for some reason and not entered into the system.
Once you have counted them all and are happy with the result you can click the Finalise Banking button.
If for some reason you need to leave the banking screen and come back and finish it later you can click the Hold button and next time you return to the banking screen everything will remain as it previously was.
But assuming you chose to finalise you will first be prompted to confirm and then a couple of things can happen. If the cash wasn't balanced, which would have previously been indicated by a red message in the Counted Under/Over, then you will be prompted with a message like this.
It will tell you that the drawer is not balancing and confirm you wish to continue. If we are happy to continue despite this then click Yes. If the cash did balance then you won't be prompted with this message and will just get the following prompt.
These are a series of reports that you may wish to print for your permanent record each day. The most common of these is the Reconciliation Report which shows all the cash flow for that day, and it will look something like this.
And that is it, your banking is now done.
Viewing previous banking records
When you have completed the banking you can quite easily bring them up to look at again, or print out the reports. Whilst in the banking screen click on the Banking History link on the top right-hand menu as shown below.
Select the banking period you wish to view
The Banking Screen for the selected period will now be in read-only mode as it was finalised, as the example shows below.