What is cash balance?

Cash balance is a check of whether the amount physically in the till matches what the POS system (till system) says should be there. At the end of the day, the system’s expected cash amount is compared with the actual contents of the till – and the difference between the two is called a cash discrepancy.

Knowing your cash balance is essential in the hospitality industry because it gives you control over your cash and lets you quickly spot errors, fraud or discrepancies. A deviation in the cash balance can be caused by, for example, typos, forgotten payouts or a payment that wasn’t recorded correctly.

Example: Imagine you run a café. At the start of the day, zero is recorded as cash in the till. During the day, coffee and cake are sold for €300, of which €120 is paid in cash and the rest by card. When an employee counts the money in the till after closing, there is only €115. The cash balance therefore shows a difference of -€5, which is recorded as a cash discrepancy. It is now important to investigate what may have caused the difference.

Why is the cash balance important?

Keeping the cash balance in order helps minimise financial errors, comply with bookkeeping rules and maintain trust in staff and operations. It also makes daily bookkeeping easier and more accurate – especially when amounts have to be reported to the tax authorities or your accountant.

Cash balance and Flexybox

With Flexybox’ till system you automatically get an overview of the day’s cash balance, so you can easily see whether the till adds up. The system automatically calculates the expected amount based on the day’s transactions, which makes it quick and accurate to match against the physical cash. This not only gives you a clear financial overview but also saves time and reduces the risk of cash discrepancies and bookkeeping errors.

Read also:

– What is a cash discrepancy?

– Get your bookkeeping in order

Frequently asked questions

If there is a difference between the recorded and the physical amount, record the difference as a cash discrepancy and investigate the cause. It may be due to typos, missed payments or reconciliation errors.

Yes, it is recommended to count the till and check the cash balance daily – ideally at both opening and closing – to keep an overview and catch errors quickly.

Cash balance is mainly about cash, but in a broader sense you can also reconcile balances for other means of payment such as gift cards or mobile payments for better financial control.

Yes, Flexybox automatically logs the day’s transactions and shows any cash discrepancies, so you can react quickly and correct errors.