What is a cash float?

Your first customer of the morning may pay with a large note for a small item. Without change in the drawer, you either turn the sale away or borrow from your pocket, and then the day's cash no longer matches the day's sales. A float solves this. It is the same amount every morning, so it can be taken out of the count at closing and does not get mixed up with takings.

A corner shop starts each day with a float of $100: $40 in coins and small notes for change, $60 in mid-size notes. By closing, the sales record shows $380 paid in cash and nothing paid out. The drawer should hold 100 + 380 = $480. The owner counts $480, takes out $380 as takings and leaves $100 for tomorrow. If the count had been $470, the $10 gap is the first thing to look into, and the float amount being constant is what makes the gap easy to see.

• Changing the float every day. A moving target makes it hard to tell a shortage from a different starting amount.
• Too many large notes. A float full of big notes cannot make change. Hold more small denominations than you think you need.
• Dipping into it. Taking lunch money or paying a delivery driver from the float without writing it down creates a gap with no explanation.
• Not counting it at the start. Count it with the opening cashier, so that any difference is known the same day.

For how to count and reconcile the drawer at the end of the day, see how to cash up.