What Is the Opening Amount?
The opening amount refers to the starting cash placed in a register at the beginning of a shift or business day.
This amount typically consists of a variety of small bills and coins, specifically intended to ensure that the cashier can make change for customers efficiently. The opening amount serves as a crucial baseline for tracking all cash-based activity throughout the shift and is a key part of any Point of Sale (POS) system’s shift-opening procedure.
Why It Matters in Retail
Having a clearly defined and consistent opening amount is essential for maintaining control and accuracy in retail operations.
Cash Control and Reconciliation: Without a recorded opening amount, it is nearly impossible to accurately track cash flow or reconcile sales at the end of the day. This figure is the basis for the entire cash reconciliation process, which determines whether the cash drawer is balanced when the shift ends.
Accountability: The opening amount provides a clear point of reference for each cashier’s handling of funds. In multi-user environments, like a busy café, convenience store, or a large retail chain, each cashier might have their own separate cash drawer or till. By tracking the opening amount for each user and shift, a business can isolate cash movement and assign accountability to the person responsible, which is vital for financial accuracy.
Audit Trail: The opening amount is a foundational part of an audit trail. If any discrepancies, overages, or shortages are found at the end of a shift, the opening amount is the starting point for any investigation, helping managers pinpoint exactly when and where an issue may have occurred.
How It Works in a POS System
The process of managing the opening amount is a core function of most POS systems:
Entry at Shift Start: When a cashier begins their shift, they log into the POS system and physically count the cash in their drawer. They then enter this amount into the POS, confirming their starting balance.
Calculation of Expected Total: The POS system records this value. Throughout the shift, it adds all cash sales and subtracts all cash-based outflows (like refunds or payouts). The opening amount plus these cash movements forms the “expected total” that the cashier’s drawer should have at the end of their shift.
End-of-Shift Reconciliation: When the shift closes, the cashier or manager performs a final cash count. This physical count is compared against the system’s “expected total” to identify any overages (extra cash) or shortages (missing cash).
Documentation and Best Practices: It is highly recommended that the opening amount is counted and verified before it is entered into the system. Many businesses also print a receipt of the opening balance as a permanent record. Documenting any immediate discrepancies (e.g., if the opening amount was accidentally wrong) is a key best practice for maintaining a clean audit trail.
It’s recommended to count the opening amount before logging it in and to document any discrepancies immediately. Some businesses also print a receipt of the opening balance as a reference.
