What are the best practices for documenting and reporting cash discrepancies?

1 Track your cash flow

The first step to document and report cash discrepancies is to track your cash flow accurately and consistently. You should have a cash register system that records every sale, refund, void, or discount, and prints a receipt for each transaction. You should also have a cash log that records the amount of cash in the register at the start and end of each shift, as well as any deposits, withdrawals, or transfers. The cash log should be signed by the cashier and the supervisor, and stored in a secure place.

2 Count your cash regularly

The second step to document and report cash discrepancies is to count your cash regularly and compare it with the cash register and cash log records. You should count your cash at least twice a day: once at the opening and once at the closing of the store. You should also count your cash whenever you change the cashier, make a deposit, or receive a delivery. You should use a standard procedure for counting cash, such as using a counting machine, sorting the bills by denomination, and verifying the coins. You should also use a cash count sheet to record the amount of cash counted and any discrepancies.

3 Investigate any discrepancies

The third step to document and report cash discrepancies is to investigate any discrepancies that you find between the cash count and the cash records. You should try to identify the source and the reason for the discrepancy, such as a human error, a system malfunction, a customer complaint, or a theft. You should also check if the discrepancy is recurring or isolated, and if it affects other aspects of your store operations, such as inventory or sales. You should document your findings and actions on a cash discrepancy report, and attach any supporting evidence, such as receipts, invoices, or CCTV footage.

4 Report any discrepancies

The fourth step to document and report cash discrepancies is to report any discrepancies that you find to the appropriate person or department, such as your manager, accountant, or auditor. You should report any discrepancies as soon as possible, and follow the company policy and procedures for reporting cash discrepancies. You should also provide a copy of your cash discrepancy report and any supporting evidence, and explain the cause and the impact of the discrepancy. You should also follow up on any corrective actions or recommendations that are given to you.

5 Train your staff

The fifth step to document and report cash discrepancies is to train your staff on how to handle cash transactions and prevent cash discrepancies. You should provide your staff with clear and consistent guidelines and expectations for cash handling, such as how to use the cash register, how to count cash, how to deal with refunds, voids, or discounts, and how to report any issues or concerns. You should also monitor and evaluate your staff's performance and compliance with the cash handling policy, and provide feedback and coaching as needed.

6 Review your cash handling policy

The sixth step to document and report cash discrepancies is to review your cash handling policy regularly and update it as needed. You should review your cash handling policy at least once a year, or whenever there are any changes in your store operations, regulations, or technology. You should also solicit feedback from your staff, customers, and stakeholders on how to improve your cash handling policy and practices. You should also benchmark your cash handling performance and results against industry standards and best practices.