Cash Handling Policy

A cash handling policy is a set of written procedures that explains how a restaurant receives, counts, records, secures, transfers and reconciles cash. It establishes who is responsible for each step and how the business reduces errors, theft, disputes and financial losses.

What a restaurant cash handling policy should cover

• Opening floats: Set and record the starting cash amount for each till or cash drawer.
• Sales and payments: Enter every transaction through the approved point-of-sale system and issue receipts according to policy.
• Cash drops: Define when excess cash is removed from a drawer, who performs the drop and how it is secured.
• Refunds and voids: Require appropriate authorisation and retain a record of the reason and transaction.
• Shift changes: Specify whether drawers are assigned to individuals and how responsibility is transferred.
• End-of-day reconciliation: Compare counted cash with POS reports, record overages or shortages and arrange secure deposits.

Internal controls and security

Use individual staff logins, restricted access to tills and safes, documented cash transfers and prompt investigation of discrepancies. Where staffing allows, separate the duties of handling cash, approving adjustments and reconciling deposits. If one person must perform several duties, add a review by a manager or owner. Never share till passwords or leave cash unsecured in an accessible area.

Records and discrepancy management

Keep records of float amounts, cash counts, deposits, refunds, voids, paid-outs and variances in accordance with the business’s accounting and retention procedures. A shortage or overage should be documented and investigated consistently; it should not be silently adjusted to make the report balance.

Example: At shift change, the outgoing and incoming employees count an assigned cash drawer, compare the amount with the expected float, record any difference and sign the handover record.

Chef’s tip: Keep the policy short enough for staff to follow during a busy service, and train every employee who handles payments or cash deposits.

Key distinction: A cash handling policy governs the physical handling and control of money. A cash-flow forecast estimates when money will enter and leave the business.