Given the rivers of cash that flow through most bars, hotels and restaurants, it's surprising how weak the internal controls can be, expecially with small operators.

Use this list for a quick audit of your systems - tightening up may be less 'convenient' but everyone will get used to it:

Cash Control Systems:

• Limited access to the safe - a key and access log is maintained. A safe is not a cupboard!

• A set amount for the 'float' or cash bank for each till, and a new float is used for each shift.

• Float is made up centrally, not taken out of cash from the previous period

• One nominated manager is in charge of setting up the till and preparing standard reports

• Cash on premises and in the till is kept to a minimum

• Use of a drop safe for regular till clearances

• The till is cleared throughout each shift (use the cash total alert system on your POS) and placed in the drop safe

• Individuals handling cash have no access to the reconciliation of tills - it's handled separately and not 'corrected' or 'groomed'

• Cash counting and sorting is done in a separate locked area

• Large notes are confirmed verbally when presented at the till: 'check $50!'

• A printed docket or receipt is available or given to customers if requested

• Tills that don't balance are promptly reported to the managers responsible for explanation

• Appropriate consequences for repeated till balancing errors eg - cash under of more than $5 is cause for a formal warning

• Pay-outs from the till are recorded on a form or deducted from a separate petty cash float

• Cash advances for staff only made in exceptional cases and with authorisation

• Cash tips and credit card tips are given to staff according to set procedures

• Separate deposit prepared for each shift and banked daily

• Bank deposit slips are cross-checked with daily cash reports

• Random audit checks of cash drawers and store cash banks performed on a regular basis, even if you have perfect staff!

See more: 32 Cash Register & Point of Sale Control Systems and the wide-ranging articles in Fraud & Theft Control Dept.

Do you have other suggestions? Please add them to the comment box at the bottom of the page...

Also check:

The Fraud Triangle: Could it Apply in Your Business?

Management Logbooks - make it easy for duty managers and chefs to record daily activities and incidents. Perfect for reconciling with variations in daily takings.

Cost Control Forms & Profit Calculators - pinpoint the problem areas fast!

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