How should I reconcile cash takings and till differences?

Use the till or point-of-sale report to establish sales by payment type and the relevant VAT treatment. Separate cash, cards, vouchers and refunds so they can be reconciled through the appropriate route. A net bank deposit can be lower than sales because cash was retained as a float or used for a recorded payment. Equally, depositing cash from several days does not make it all that day’s revenue. Keep dated reports and identify which periods a deposit covers. For VAT, the applicable retail scheme or other rules determine the records and calculations required. Do not assume a bank feed alone provides a complete sales record.

Begin with the opening float, add cash sales and other cash received, then deduct authorised refunds, cash expenses, withdrawals and amounts banked. Compare the expected balance with the actual count. Record each movement with evidence and approval where appropriate. If £500 of cash sales was received and £50 was spent on a supported business purchase, banking £450 does not reduce sales to £450. The purchase is recorded separately. Keep personal withdrawals out of business expenses and assess their treatment according to the business structure. Count consistently and document who checked the balance so differences can be investigated without relying on someone’s memory several weeks later.

A difference may come from a counting error, incorrect change, a missing refund, a duplicated sale or an unrecorded withdrawal. Recount and review the supporting records before deciding how it should be posted. Use an appropriate till-difference account where justified, rather than adjusting VAT or sales automatically. Repeated differences deserve a review of access, approvals and training. A large or unexplained shortfall may need further investigation, and suspected theft requires appropriate professional or legal support. Avoid accusing an employee solely because the till does not balance. Preserve the records, establish the facts and follow a consistent process for reviewing discrepancies and deciding the next action.

Agree when cash is counted, who approves refunds, how expenses are documented and when money is banked. Limit access to the float and keep payment types separate in reports. Reconcile card settlements against fees, refunds and timing differences rather than mixing them into the cash count. Send CASS the till reports, cashbook, deposit details and supporting receipts through the agreed process. We can help design the bookkeeping and reconciliation routine within the service scope. Review the process when staff, tills or payment providers change. Clear records help explain genuine differences and make reports more reliable without requiring complicated controls that the business cannot maintain consistently.