The till float, or bank, is the initial cash placed in a register drawer at the start of a business day. This starting capital allows employees to process customer transactions and provide correct change immediately. Accurate counting of the float is necessary for maintaining financial integrity and preventing discrepancies. Establishing a precise counting routine helps reconcile daily sales figures against the starting balance.
Defining the Till Float and Its Purpose
The till float is a predetermined, fixed amount of cash placed into a register drawer at the beginning of a shift. Its primary function is to facilitate transactions by providing the denominations needed to make change for customers. This initial amount is strictly separate from the revenue generated during the operating period. Isolating the float ensures the store can accurately calculate the day’s sales by subtracting the starting capital from the total cash collected at closing. Float amounts commonly range from $100 to $200, depending on the business volume.
Preparing for the Count
Before handling any cash, secure a dedicated and private workspace to minimize distractions and maintain security. The area should be clean and clear of clutter to prevent misplaced money or documentation errors. Gather the necessary materials, including a functional calculator, a printed denomination count sheet, and a pen for recording figures. The final preparation step involves confirming the standard target float amount, such as $150 or $200, which serves as the benchmark for the count.
The Step-by-Step Counting Process
Separate by Denomination
The initial step is to organize all currency into distinct groups based on their value. Separate all bills into individual piles for ones, fives, tens, and twenties. Similarly, divide coins into separate clusters for quarters, dimes, nickels, and pennies. This systematic separation provides a clear visual layout and reduces the potential for arithmetic errors.
Count and Stack
Once separated, count each denomination using established stacking methods for speed and accuracy. Bills are typically counted into standardized bundles, often stacks of 10 or 20, allowing for quick verification. For example, a stack of 20 five-dollar bills is instantly recognized as $100. Coins should be counted directly into coin wrappers or placed into the corresponding slots of a specialized counting tray.
Counting coins into wrappers is common, as the wrapper represents a known quantity, such as 50 pennies or 40 quarters. This converts the individual coin count into a more manageable count of complete rolls. Immediately record the quantity of each stack or roll onto the denomination count sheet before moving to the next category.
Total the Categories
Calculating the monetary value of each denomination category is the final stage of the physical count. Multiply the quantity recorded (the number of bills, rolls, or stacks) by the value of the single unit. For example, 15 five-dollar bills total $75. If there are four rolls of quarters, the total value is $40, since each roll is worth $10. After calculating and recording the subtotal for every currency type, add all subtotals together to determine the absolute total cash present in the till.
Verifying Accuracy
After calculating the absolute total cash amount, compare this figure against the target float amount established by the business. This comparison identifies any discrepancies, ensuring the register begins the day with the correct starting balance. If the calculated total matches the target amount, the count is verified as accurate and can proceed to documentation.
If the calculated total is higher than the target, it is an overage; if lower, it is a shortage. Both situations indicate an error in the physical count or a prior handling issue and require immediate attention. When a discrepancy is detected, the entire float must be recounted from the beginning, repeating the separation and stacking processes to isolate the source of the error. The recount must continue until the calculated total precisely matches the business’s predetermined float standard.
Documentation and Securing the Float
Once the float is verified to match the target amount, execute the final administrative procedures to formalize the count. Complete the official till count sheet, logging the verified total amount and the quantity of each denomination. The person who performed the count must date and sign the document, confirming the accuracy of the figures. A manager or a second designated employee should then review and countersign the sheet, establishing a dual-verification audit trail. Finally, secure the verified float by locking it within the register drawer or placing it in a designated business safe until the start of the operating shift.
Tips for Efficient Cash Handling
To maximize speed and accuracy, employees should count every denomination twice before recording the figure. Implementing a “double count” system, where a second person verifies the total stacks before final documentation, significantly reduces human error. Maintaining an organized and clutter-free counting station prevents the accidental mixing of currency or the loss of documentation.
Establishing a standardized routine ensures every count is performed in the same order, building efficiency over time. Using clear, standardized count sheets minimizes confusion and speeds up the calculation phase. These practices transform the counting process into a quick, reliable component of daily operations.