Restaurant Cash Float Guide: How Much Change Do You Need?

Every restaurant that handles cash faces the same question on opening day: How much cash do we start with?

This starting cash—your cash float or change fund—is essential to operations. Too little, and you can't make change for customers. Too much, and you're tying up capital unnecessarily. The right amount depends on your business volume, table turnover, and payment methods.

This guide walks you through calculating your ideal cash float, choosing the right denominations, and establishing proper reconciliation procedures.

What Is a Cash Float?

A cash float is the fixed amount of money your restaurant maintains at the start of each shift or day to handle customer transactions. It's not sales revenue—it's operating capital that stays relatively constant.

Example: If your float is SEK 2,000 and you start the day with it, by the end of the day you might have SEK 5,500. That extra SEK 3,500 is your actual sales revenue. Tomorrow, you'll return the float to SEK 2,000 and carry forward the SEK 5,500 as sales.

The float is the foundation of orderly cash handling. Without it, you can't distinguish between starting cash and sales, making reconciliation confusing and error-prone.

How to Calculate Your Ideal Cash Float

The right float size depends on several factors:

1. Average Transaction Size

Multiply your typical customer transaction by 5-10. If most customers spend SEK 150-200, a float of SEK 750-2,000 is reasonable.

Why? This ensures you can make change for several customers before requiring a cash deposit or drawer reconciliation.

2. Peak Hour Traffic

Consider your busiest hour. If you serve 20 customers per hour during lunch rush, and each transaction averages SEK 180:

• SEK 20 × SEK 180 = SEK 3,600 in typical sales per hour
• You should be able to make change for 3-5 of those transactions simultaneously
• Float: SEK 1,500-2,500

3. Payment Method Mix

If 80% of customers pay by card and only 20% pay cash, you need less float. Conversely, if you're in a cash-heavy area or serve delivery drivers, couriers, and tradespersons who prefer cash, you'll need more.

Cash-heavy business: SEK 3,000-5,000 float Cash-light business (card-dominant): SEK 1,000-2,000 float

4. Number of Registers

If you have multiple tills or registers, divide the float accordingly. Don't give each register the full amount—instead, distribute it based on traffic patterns.

Example: Restaurant with 3 registers handling equal traffic:

• Total float: SEK 3,000
• Float per register: SEK 1,000

5. Multi-Shift Operations

If you operate multiple shifts, you might maintain one central float or a float per shift. Central floats are more efficient for accounting.

Recommended Cash Float Denominations

Once you've calculated your total float amount, break it into denominations. This matters—having small bills available is crucial for making change smoothly.

Standard Swedish Float Denominations (SEK)

For a SEK 2,000 float, a typical breakdown:

• 1 × SEK 500 note: SEK 500
• 4 × SEK 100 notes: SEK 400
• 4 × SEK 50 notes: SEK 200
• 10 × SEK 20 notes: SEK 200
• 20 × SEK 10 coins: SEK 200
• 20 × SEK 5 coins: SEK 100
• 30 × SEK 1-2 coins: SEK 50
• 50 × SEK 0.50 coins: SEK 25 (rounding purposes)

Total: SEK 1,675 (adjust with additional notes to reach SEK 2,000)

Key Principles

• Heavy on small denominations: Most change is SEK 10-50, so stock these generously
• One large note: A single SEK 500 for exceptional situations
• Coins for rounding: Essential if you accept cash—many transactions end at awkward amounts
• No extreme denominations: Avoid over-stocking SEK 1,000 notes; these rarely get used for change

Adjust this mix based on your actual experience. Track what denominations you run short of—that's your signal to rebalance.

Daily Cash Reconciliation

Proper reconciliation ensures accuracy and catches discrepancies early.

End-of-Day Process

1. Count the Physical Float

   • Remove the float from the register/drawer
   • Count it carefully, denomination by denomination
   • Record the counted amount

2. Verify Against Starting Float

   • Compare counted float to the starting float amount
   • If they match, the float is balanced
   • If they don't, investigate the discrepancy (discussed below)

3. Count Sales Revenue

   • Count all additional cash above the float
   • This is your actual sales revenue for the day
   • Reconcile against your POS system's cash sales total

4. Document Everything

   • Record starting float, counted float, and variance
   • Document actual sales
   • Note any discrepancies or unusual transactions
   • Assign responsibility (which staff member handled the drawer)

Example Daily Reconciliation

Starting Float:      SEK 2,000
Cash in Register:    SEK 5,487
Counted Float:       SEK 2,000 (matches!)
Sales Revenue:       SEK 3,487
Variance:            SEK 0
Status:              ✓ Balanced

Handling Discrepancies

Small variances (SEK 10-50) are normal due to rounding. Document them but don't panic. Larger variances require investigation:

• Missing cash: Review transactions, check for refunds not properly recorded, or staff errors
• Excess cash: Could indicate a transaction not recorded in POS, or customer overpayment
• Recurring issues with one staff member: May indicate training needed or intentional loss
• Systematic shortages: Could signal a POS system error or cash-handling process problem

If discrepancies exceed SEK 100 regularly, revisit your process.

Best Practices for Cash Float Management

1. Assign Clear Ownership

One person per shift should be responsible for the float. This makes accountability clear and identifies problems quickly.

2. Use a POS System with Cash Tracking

Modern POS systems (like Vendion) track expected cash amounts versus actual counted cash, flagging discrepancies automatically. This removes guesswork and catches errors fast.

3. Secure Storage Between Shifts

Keep the float in a locked drawer or safe overnight. Don't leave it on a desk or in an office. Theft is a real risk.

4. Establish a Float Exchange Protocol

When a staff member leaves mid-shift or takes a break:

• Count the float together
• Document any variance
• Have the incoming person sign off on what they're receiving
• This prevents one person being blamed for another's errors

5. Regular Audits

Weekly or monthly, audit float accuracy across all shifts. Look for patterns: Do some shifts consistently show variances? That's a training or process opportunity.

6. Plan for Large Transactions

If a customer pays with a large note (SEK 1,000) for a SEK 200 meal, your float might be temporarily negative. Have a procedure:

• Accept the payment
• Make change from the large note
• Reconcile normally at day-end
• Your POS system should flag this scenario

Common Cash Float Mistakes

1. Float That's Too Large You're tying up capital. Every SEK in your float is SEK not earning interest or used elsewhere. Excess float also increases theft risk.

2. Float That's Too Small You'll constantly run out of small bills, creating customer friction and forcing you to break larger bills unnecessarily.

3. No Documentation Without records, you can't spot patterns or investigate discrepancies. Documentation is your protection and proof.

4. Inconsistent Staff Accountability If everyone shares one float with no accountability structure, problems multiply. Each shift should have a designated float handler.

5. Ignoring Small Discrepancies Small variances (SEK 5-10) add up. Regular small losses often indicate a process problem that, fixed early, saves money long-term.

Frequently Asked Questions

Should we use a cash float if we're mostly card-based?

Yes. Even if 90% of transactions are card, you need float for the 10% that are cash, and for the occasional customer without a card. The float is typically smaller but still necessary.

What if our float gets stolen?

Theft is a business loss unless you have insurance. Secure your float properly (locked drawer/safe), and consider cash handling insurance as part of your risk management. Regular accountability measures also deter theft.

How often should we recount the float?

Daily is standard. Some high-volume restaurants recount mid-shift if they suspect an issue. Use your POS system's alerts as a guide—if it flags a variance, investigate immediately.

Can multiple people share one float?

Technically yes, but it creates accountability problems. Best practice: One float per shift/register with one assigned person. If multiple people use the same drawer, document handoffs meticulously.

Should we keep the float at the register or in a safe?

Operational best practice: Keep a portion (perhaps SEK 500) at the register for immediate change-making, and secure the rest in a safe. This balances convenience and security.

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Ready to streamline your cash handling? Book a demo and see how Vendion's cash management tools help you track, reconcile, and control your float automatically.