Having an end-of-day revenue reconciliation procedure is the key to staying on top of your books. Along with having clean and accurate records, you’ll also be able to easily pinpoint when discrepancies occur and make sure each day starts with a clean slate. Though this process may seem lengthy, it quickly becomes an invaluable habit that provides clean, accurate accounting.
- Collecting Payments from Terminals
- Counting Payments & Closing Shifts
- Verifying Cash Drop Amounts
- Reviewing Daily Totals
- Optional: Next-Day Reconciliation
NOTE: In order to make end-of-day reconciliation a breeze, your staff should be following standard shift turnover practices. This allows you to identify the orders each sales associate transacts and the total payments collected during their shift.
Collecting Payments from Terminals
After each terminal finishes serving customers for the day and sales associates have ended their shifts in Treez, you’ll begin the collection process.
Step 1: Sales associates should initial their End of Shift receipt and place it inside their cash drawer.
Step 2: Collect the physical cash drawers from each of the terminals.
TIP: To avoid mixing up cash drawers, each drawer should be physically labeled with its associated account name. You can set up account names in Cash Handling configurations.
Step 3: Collect the cash and change from each cash drawer, keeping each drawer’s payments separate.
If you accept other payment types, such as debit or credit, you should also collect the printed receipts from the payment devices.
Step 4: Wrap the End of Shift receipt around the corresponding drawer’s stack of cash and debit/credit receipts, secure it with a rubber band, and put them inside separate money bags.
Counting Payments & Closing Shifts
Once you’ve collected the payments, you’ll count each cash drawer’s cash bundle and close its corresponding shift in Treez. The Close Shift procedure includes recording the actual payments collected at each terminal and comparing it to the amount recorded in Treez. This process is typically done by a Manager or Shift Lead, or dedicated Cash Manager.
Step 5: Take the cash bags to a restricted access area, such as a back office.
Step 6: Navigate to Cash > Cash Handling. By default, the Shift Report Overview will be visible.
Step 7: Open one of the money bags, remove the cash stack and determine which cash drawer it’s associated with using the End of Shift Receipt.
Step 8: In the Shift Report, identify the row with the corresponding cash drawer name in the CD column. Click on the ellipsis at the end of the row, and select Close Shift.
NOTE: Make sure all shifts on the shift report have a status of ‘Ended’. If a row has an ‘Open’ status click the ellipsis and then select End Shift. If staff are following the end of shift procedures, the shifts should already be ended by this point.
Step 9: From the cash stack, count out the Total Shift Expected amount of cash (displayed in the table at the bottom of the screen) and set it aside. Enter this amount in the ‘Cash Out Drop - Bills’ field.
Step 10: Count the remaining cash in the stack for your cash drawer float.
- If you have a static float, this amount should theoretically equal the float amount.
- If it’s more than the float, remove any cash over the float amount and add it to the Total Shift Expected cash stack. Then, update the ‘Cash Out - Drop Bills’ field to the new total.
- If it’s less than the float, remove the missing amount from the Total Shift Expected cash stack and add it to the float. Then, update the ‘Cash Out - Drop Bills’ amount to the new total.
- If you have a dynamic float, count the cash remaining and enter it in the float amount on the Close Shift page.
Step 11: Take the float cash and put it back into the drawer so it’s available for the next shift.
Step 12: Click Close Shift > Confirm.
Step 13: Repeat the steps above to close shifts for the rest of the cash drawers.
Verifying Cash Drop Amounts
Verifying cash drops your staff performed during the day is an important step that ensures the amount recorded in Treez matches the cash collected.
TIP: We recommend enabling a maximum balance for cash drawers to remind staff to make cash drops at regular intervals.
Step 14: Take the cash drop bundles out of the vault, or wherever cash drops are stored throughout the day in your shop.
Step 15: In your portal, navigate to Cash > Cash Handling > Shift Report and click the Cash Drops tab.
Step 16: Check if the recorded amount in the Cash Drops tab matches the totals labeled on each cash drop bundle.
TIP: To maintain accountability, cash drop bundles should be labeled with the cash drawer name, amount collected, time, and the initials of the person who performed the cash drop.
Step 17: If the total entered is incorrect, adjust the drop amount by clicking the Edit icon on the relevant cash drop’s line. Then click the Save icon.
Reviewing Daily Totals
Step 19: After you close each shift, navigate to Cash > Cash Handling > Shift Report > Daily Totals tab.
NOTE: Red indicates the ‘Actual’ amount (total cash entered during Close Shift) is lower than the ‘Expected’ amount (total sales recorded by Treez), Green indicates the Actual is higher than the Expected.
Step 20: Review Daily Summary table.
- This table shows the total sales for the day with columns for Expected and Actual amounts as well as the difference. The rows in the table represent the totals for each supported payment type, with a grand total for all payment types at the bottom of the section.
Step 21: Review the Cash Drawer Actuals table.
- This table has rows representing each shift closed during that day with the actual payments that were counted. To edit the actual total for any of the shifts, click the edit icon in the row.
TIP: If the number in the ‘Cash’ column is hyperlinked, you can hover over it to see the amount of cash drops made during that shift.
Step 22: Review the Cash Drawer Differences table.
- This table has rows for each shift that show the difference between the Expected total sales minus the Actual total payments collected, per payment type. If there is no difference between the Expected and Actual amounts, you’ll see a ‘-’ for each row.
TIP: If there are discrepancies for individual payment types, but no discrepancy for the total (e.g. Cash for Drawer 1 is $20 over the Expected, and Debit for Drawer 1 is $20 under the Expected) this is a good indicator the wrong payment type was selected at checkout during this shift, and there are sales that need the payment type corrected.
Step 23: Once you are satisfied that the Daily Totals report is correct, print the Daily Totals report by clicking the ellipsis in the upper right-hand corner and selecting Print.
Step 24: Combine all the cash collected for the day in a single bundle. Perform a final recount to confirm the total payments collected match the Cash Actual in the Daily Summary section.
Step 25: Take the cash, put it into an envelope labeled with the total amount of cash contained, attach the Daily Total printout, and then put it in your cash vault.
TIP: If you have other payment type receipts, file those away per your store’s policy.
This completes the End of Day Reconciliation process.
Optional: Next-Day Reconciliation
It’s good practice to have the opening manager the following day double-check the reconciliation that occurred the night before.
Step 26: Remove the previous day’s cash envelope from the vault and recount the cash.
Step 27: Compare the counted amount with the Cash Actual total on the Daily Totals report. The amounts should match. If there are any discrepancies, follow your store’s procedure for investigating/escalating discrepancies.
Once the Next-Day Reconciliation is completed, you may use or store the previous day’s cash as needed (e.g. as change, to pay vendors, etc.) but be sure to record any movement of cash as a Transfer for accurate record-keeping.