Reconciliation of the cash register

Cash register inventory

Reconciliation, verification, and recounting of cash is an internal control process at an enterprise that is carried out to preserve cash in the cash register of that enterprise.

A cash desk is a place or even a room where cash payments are made, and where money and cash documents are received, issued, and stored. Regardless of whether you use a cash register or not, the place where customers pay for goods in cash will be considered a cash desk.

Two documents regulate the cash inventory procedure: Regulation No. 879 and Regulation No. 148.

Why take a cash inventory

The cash register inventory solves three tasks:

• detects the actual amount of money in the cash register;
• identifies excess or shortage of money in the cash register by comparing the actual availability with the accounting data;
• checks the conditions and procedure for storing money.

How often do you need to take a cash inventory

The procedure and timing of cash reconciliation can be divided into: those enshrined in law and those established by the company's manager.

If the timing and procedure for reconciling the cash register is set by the head of the company, then everything is clear, as written in the order, and we do it.

The law requires an inventory in the following cases:

• before submitting the annual financial statements (within two months before the balance sheet date);
• in the event of a change in the financially responsible person;
• if theft or abuse has occurred;
• on the basis of a court decision or in the event of an inspection by government agencies (for example, tax authorities may require the fact of a cash recount);
• if there is a fire, natural disaster or man-made accident;
• in case of liquidation of the company.

There are also scheduled cash checks (carried out once a quarter) and unscheduled checks (carried out unexpectedly, for the responsible person). In any case, it is better to check the cash register more often than is required by law.

Who should conduct a cash inventory

If the company is on the simplified taxation system and employs only 10 people, of course, the formation of an inventory commission is out of the question; the presence of a manager or accountant and a materially responsible person will be sufficient.

If we are talking about a large organization, then the formation of an inventory commission is indispensable. Its composition is approved by an order of the head.

The inventory committee may include the following members:

• one of the company's executives or their deputies;
• accounting staff;
• experienced employees who know the object of the inventory.

Please note! The inventory committee cannot include financially responsible persons, but they must be present during the cash reconciliation. That is, it is prohibited to reconcile the cash register without the person responsible for its maintenance.

What is the procedure for conducting a cash inventory

It is best to conduct a cash reconciliation at the beginning or end of the working day when the cashier has already summarized the results. Before starting the cash reconciliation, the cashier must submit the cash report and all expense and income documents to the accounting department.

Step 1. Writing a receipt

The financially responsible person (cashier) must write a receipt stating that all money received during the day is posted, and that money that was lost is written off as an expense.

Step 2. Actual verification

The commission counts the actual availability of cash on hand (in pieces). Please note: it is prohibited to keep cash in the cash desk of an enterprise that does not belong to that enterprise. It follows that cash that is not supported by cash documents is considered to be surplus.

To control the cash register, we recommend using the cash reconciliation in Torgsoft.

Step 3. Check the correctness of filling out cash documents

The commission checks the correctness of filling out receipt and expense cash orders, cash books, the register of salary deposits, etc.

Step 4. Reconciliation of actual and accounting data

If the company uses a cash register, the commission compares the actual data with the amount indicated in the X-report of the cash register. If the cash register is not used, the actual amount is compared with the data in the cash book.

Step 5. Posting surpluses or writing off shortages

If the cash recount reveals excess cash, the commission finds out the reason for it and posts it to the cash register, with such amounts being included in the company's income. If a cash shortage is detected, the amount is withheld from the person responsible for the cash.

Step 6. Drawing up an inventory report

Based on the results of the cash inventory, the commission draws up an inventory report (in duplicate), which is signed by all members of the commission and the person in charge. One copy is submitted to the accounting department, and the other is retained by the financially responsible person.

How to reconcile the cash register in Torgsoft

To check the cash register in Torgsoft, you need to select the "Report" menu item - "Cash register report for the day". Using this form, you can get a cash report for any day, as well as from any accounting center. More detailed information can be found in the "Generalized report for the day".

If you take money from the cash desk, conduct a cash collection and check the balance.

You can record the cash balance in the Financial document.

We recommend watching the video to get full information about financial workflow in Torgsoft.