Let’s say you work as a cashier at an electronics retail store and you find yourself in a predicament – a significant amount of money is missing from your cash register. That’s not good news; this post will help you explain money missing from cash register. And despite being a reliable employee, you have experienced one or more major cash shortages during your shifts.
Now, the management has launched an investigation, but the source of the missing money remains a mystery. Of course, this will leave you feeling stressed and uncertain about your job security. Sometimes, the situation raises several questions about cash handling, accountability, and the possible reasons behind such discrepancies.
As a cashier, you might be out of balance when closing the register for a few reasons. Often, these issues happen because employees make simple mistakes and don’t notice them on time.
How to Explain Money Missing from Cash Register
1. Understand the Cash Handling Process
The cashier is usually given a till (cash register) with a certain amount of money at the start of their shift. They are the only ones who have access to it during their shift. All transactions are logged under their user ID. At the end of the shift, a manager or supervisor takes the till to count the money.
2. Identify the Problem
If there’s a discrepancy between the starting amount and the final count, it’s considered a shortage. You could sometimes experience two shortages or more. So, determine this problem to help explain money missing from cash register.
3. Investigate the Issue
The management can investigate all possible causes of the shortage. This includes:
- Stealing. A cashier or coworkers could have taken the money. However, this is usually ruled out by reviewing surveillance footage. Meanwhile, in one incident, Lincoln Hy-Vee cashier was arrested after she was caught stealing from her cash register.
- Miscounting. A cashier or the manager could have miscounted the cash. However, large discrepancies are unlikely to be due to miscounting.
- System flaw. There could be an error in the cash register system. However, this is usually checked by the management.
- Customer theft. A customer could have taken the money. However, this is usually ruled out by reviewing surveillance footage.
4. Take Action
If the money is not found, the management may decide to let the cashier go. However, they should not be legally charged unless there’s evidence of theft.
5. Learn and Improve
The cashier should learn from the experience and improve their cash handling skills. They should also consider quitting if they feel that the management is not handling the situation fairly.
Reasons Money is Missing from Cash Register
1. Excess change was given to customers
Shortages often happen when cashiers mistakenly give customers more money than they should. But don’t worry, these discrepancies are usually small, just a few cents to a dollar. Some stores allow cashiers a bit of flexibility, like $0.50 to $1.00, if they occasionally come up short.
2. Customers have been shortchanged
Too much money in the drawer is just as bad as not having enough. This is usually because the cashier might not give customers the correct change, which is a way to explain money missing from cash register. Overages can hurt the company’s reputation though, as unhappy customers may avoid shopping at your store again and share their experience of being shortchanged on social media.
3. There are mistakes in the payment method entry
Another reason cashiers might end their shift out of balance is by entering the wrong payment type. This happens more often in stores using Point-of-Sale systems where cashiers manually input whether the payment was made with cash, credit/debit cards, or gift cards/certificates.
A single careless error could lead to a significant overage or shortage in the register. Though these mistakes can be frustrating, the good news is that the money isn’t actually missing. Managers can investigate and usually find the problem, correcting it in the process.
4. Mishandled returns
Not following the right return process can create issues with end-of-shift reporting, especially when customers choose cash back instead of exchanging items or getting store credit.
Mishandling returns can lead to problems with inventory and cash discrepancies in the drawer. It helps to have well-trained and experienced employees handling returns to avoid such problems.
5. Theft problem in the store
Cash shortages can happen because of theft. Although managers should avoid immediately accusing cashiers of stealing when there’s a shortage, there has to be an investigation if money consistently goes missing at the end of a shift to find out if someone might be stealing.
Reliable POS System Can Stop Cash Register Mistakes
When you have several employees, it’s common for cashiers to make mistakes that can impact the end-of-day report or inventory. Human error is natural when dealing with money and managing stores. Cash discrepancies are a significant problem and it requires managers to spend valuable time investigating and correcting mistakes.
Unfortunately, there aren’t many ways to prevent human errors, except for improved training and limiting one person to a cash register at a time.
The good news is that technology for managing inventory, recording transactions, and tracking store money has improved significantly.
A good POS system now includes internal controls to prevent careless mistakes that cause reporting discrepancies or financial losses. Although these systems can’t completely eliminate errors, they can help you catch and fix mistakes before they become bigger issues that take up more time.
Below are some useful features to look for in a POS system that will help you manage your store’s money and inventory and avoid missing cash:
|Real-time Sales Tracking||Records sales as they happen, making it easy to look up past transactions and resolve any discrepancies.|
|Cloud Technology||Offers remote access, allowing you to track sales and access reports from anywhere and at any time.|
|User-friendly Interface||Reduces the likelihood of errors by employees while processing payments or handling returns.|
|Employee Tracking and Reporting||Allows quick identification of errors and helps monitor employees who might be engaging in dishonest behavior.|
If you want a software solution to minimize employee errors and avoid shortages or overages, find a provider to help. You need software that is more than just a POS system; it has to have a complete retail software platform that assists with in-store management, tracks sales, enhances marketing strategies, and efficiently manages inventory for your stores or even the entire franchise chains.
Read also: How to get cash back without a receipt