In accountability, cash movements include cash in, cash out and bank deposits.
For fiscal purposes, all cash movements must be registered in an accounting book, in order to check that your cash flows are accurate.
Businesses dealing with lots of cash payments must check their cash in till each day. Any difference must be explained. You can check your cash in till whenever you want in your Hiboutik account.
Your cash balance must be positive, otherwise you accountability can be questioned by your fiscal authority.
You can enable/disable the cash management features in Settings/Users/Access management.
1/ Cash movements
If you accept payments in cash, you may need a petty cash to make change on money tendered by your customers.
To start, you must proceed to a deposit of an initial cash float in your till. After some sales, the cash amount in you till will increase and you would proceed to withdrawals for store expenses or bank drops. You must always keep in your till enough money to make change on future cash payments.
You can complete these cash in and cash out movements in the first part of the Till tab.
At the end of the day or after a period of time, you can tally you petty cash to check your cash in till, in the second part of the Till tab.
Fulfill the chart with all money counted in your till, then submit (Calculate button). Hiboutik will automatically check if your petty cash is balanced by taking into account your initial cash float, deposits, withdrawals and cash payments, till the last check of your petty cash.
If you find discrepancies, here are some explanations:
– positive differences (physical count is more than expected count): a sale paid in cash has been closed with another payment type, positive difference when you make change, tips in cash added to the till…
– negative differences (physical count is less than expected count): a sale paid with another payment type than cash has been closed with the cash payment method, theft in your drawer, negative difference when you make change, tips withdrawn from the till but paid with another payment type than cash…
2/ An example
When you open your store, add an initial cash float of 150 and submit.
During the day, you register some sales paid in cash. At the end of the day, go in the Till tab, tally all bills and coins in the till, and submit the counted amount.
Cash counted is equal to the cash expected in the till. We proceed to a withdrawal for a bank deposit to avoid keeping too much money in the till.
Cash movements are resumed in the last part of the Till tab.
The final petty cash is displayed at the top of the Till tab. It is the amount of money remaining in your till and it will be the initial cash float for the next business day.
If you have some differences when you check your till, you can proceed to a deposit or a withdrawal to balance your cash account. We advise you to add a note to provide further detail about these discrepancies.
Cash management is very easy in Hiboutik free POS software.