Cash Reconciliation – Physical Cash vs. System Balance

Cash reconciliation (also called "till count" or "end-of-day") is the physical count of money in the till compared to what the system says should be there. It's one of the most important daily routines in a restaurant – both to catch errors and to document that staff follow procedure.

Why does it matter?

1. Catch errors early – Change given wrongly, customers receiving too much back, cash drifts that have crept in
2. Prevent shrinkage – Systematic differences can indicate theft or internal loss
3. Accounting correctness – Account 1910 (Cash) must always reflect physical cash in the drawer
4. Audit trail – If Skatteverket audits the restaurant, the till must match

The technical relationship

In accounting, account 1910 (Cash) represents the physical cash in the drawer. Every cash payment debits 1910. Every withdrawal (e.g. bank run) credits 1910.

Mathematically:

Expected 1910 balance =
  Opening float
  + Today's cash sales (Z-report's 1910 entry)
  − Today's returns/voids
  − Bank withdrawals
  − Float additions

The physical count must match this – otherwise you have a cash discrepancy.

Step by step: daily reconciliation

1. Mentally close the till Instruct staff not to take more cash payments. If you close the restaurant at 23:00, do this around 22:45.

2. Print an X-report Gives you a preview without affecting the Z counter. You see how much the system expects to be in the till.

Example:

X-report 2026-04-19 22:45
Total cash sales today: 4,325 SEK
Opening float: 1,500 SEK
Expected in drawer: 5,825 SEK

3. Count physical cash Empty the drawer onto the counter. Sort notes and coins:

1000-notes: 3 × 1000 = 3,000 SEK
500-notes:  4 × 500  = 2,000 SEK
100-notes:  6 × 100  =   600 SEK
50-notes:   2 × 50   =   100 SEK
20-notes:   5 × 20   =   100 SEK
10-coins:   2 × 10   =    20 SEK
5-coins:    1 × 5    =     5 SEK
2-coins:    0 × 2    =     0 SEK
1-coins:    3 × 1    =     3 SEK

Total physical cash: 5,828 SEK

4. Compare expected vs. actual

Expected: 5,825 SEK
Actual:   5,828 SEK
Difference: +3 SEK (over)

5. Document the difference Write in a till journal:

• Date
• Expected vs. actual
• Who counted (signature/initials)
• Possible explanation ("Likely change error around 19:00")

6. Run Z-report The system detects the difference via penny rounding and books 3 SEK on account 3740 (penny rounding).

7. Return opening float Take out 1,500 SEK and place it in the locked float safe for the next day's opening. The remaining 4,328 SEK goes in the safe/cashbox for deposit.

8. Archive the report The printed Z-report must be saved (7 years per the Bookkeeping Act).

Acceptable differences

In Sweden there is no formal tolerance – but industry practice is:

Systematic differences (every day approx. 30 SEK over) can indicate theft, fraud, or bad routines. Stay alert.

Reconciliation for other payment methods

Cash is the easiest to count (you have the money in front of you). But card, Swish, and invoice also need to be reconciled against the bank:

Card (account 1580):

• Z-report's 1580 total
• Vs. acquirer's daily report (Swedbank Pay / Nets / Klarna)
• Should match ± card fees
• Lands in bank day 1–3

Swish (account 1581):

• Z-report's 1581 total
• Vs. Swish business dashboard
• Should match exactly (no fees)
• Lands in bank same day

Invoice (account 1510):

• Z-report's 1510 total
• Vs. issued invoices in Vendion
• Should match exactly
• Lands in bank when customer pays (varies)

Common causes of cash discrepancy

1. Wrong change Cashier gives 18 SEK back instead of 19 SEK. Customer says nothing. Next day the till is 1 SEK over.

2. Personal expense Staff takes a coffee without registering. Till is 30 SEK short.

3. Double registration Same order is registered twice due to technical error. Till is short.

4. Void error Order is voided after the customer has paid, but cash isn't manually removed from the till. Till is over.

5. Float movement Someone takes change to another register without noting it. Till is short.

6. Comp distribution Guest receives a free coffee but staff doesn't register it as a comp. Till is short.

Routine to minimize differences

Owner/manager:

1. Count the till yourself at least once a week (randomly)
2. Require signature from cashier on every till report
3. Rotate till responsibility – same person shouldn't count their own till
4. Invest in an automatic change machine if volume is high

Cashier:

1. Always count the float at shift start (sign off)
2. Mentally compare the till vs. X-report periodically
3. Report immediately if you suspect a customer got wrong change
4. Never put personal money in the till "just in case"

When the difference is too large

If you have a cash discrepancy of over 100 SEK or systematic differences over 50 SEK/day:

1. Review Z-report details:

• Are all returns actually registered?
• Are there voids without explanation?
• Did staff run opening float correctly?

2. Review surveillance footage (if you have any):

• Do cash payments match till movements?
• Any signs of fraud?

3. Report to bookkeeper:

• Document the event
• Book on 3740 with clear description
• If over 500 SEK, it should probably be reviewed by an auditor

4. On suspicion of theft:

• Change the routine (separate cashiers, more surveillance)
• Contact the police on well-founded suspicion
• Keep all documentation

Summary

Cash reconciliation is 5 minutes of work per day that can save thousands of SEK per year in caught errors. Count always, document always, act when the difference is large.

The next article ("Cash Discrepancy – How It's Booked (3740)") goes into detail on the actual accounting mechanism for differences.