What should I check about a store’s cash handling and till reconciliation?
Watch a close-out yourself and ask for several weeks of till reports, deposit slips and bank statements. The three should agree day by day. Look at who counts, who deposits and what happens with shortages. Weak cash habits make reported sales harder to rely on.
Start with the routine. Ask who opens and closes the tills, who counts the cash, and whether a second person ever checks. Sit through an end-of-day reconciliation. You will see how long it takes, whether the counts match the register report and whether differences are written down or just absorbed. A shop that never records a shortage may not be tracking them honestly.
Next, trace the money. Pick several days and follow the figures from the register report, through the till count, to the deposit slip, to the bank statement. Each step should line up, with explained timing gaps. Check how card and debit sales settle compared with cash, and how refunds and voids are approved. Frequent manual voids deserve a question.
Last, look at the people. Ask about staff turnover on the cash desk, who holds the safe code, and how petty cash is managed. If a large share of sales is cash, the quality of these records matters more. Your accountant can compare the till reports with the financial statements and tell you what the gaps could mean.
Key takeaways
- Observe an actual close-out and see how differences are handled.
- Trace chosen days from register report to deposit to bank statement.
- Ask how refunds, voids and shortages are approved and recorded.
- Learn who has access to the safe and the cash office.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is Cash Flow
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
- 04Business Development Bank of CanadaGovernmentAccrual and cash-based accounting
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