Cash reconciliation

The process of identifying breaks between cash recorded in the POS vs what have been declared deposited by the outlet manager and what is recorded in the bank.

Importance, Challenges and Best Practices

Importance

• Ensures cash at risk is within threshold
• Identifies discrepancies or errors quickly
• Helps prevent and detect fraud
• Provides accurate data for financial reporting and analysis
• Supports tax compliance and audit readiness

Challenges:

• Multiple Whatsapp messages sent to Finance team for deposit
• No proper recording
• Manual reconciliation and validation

Best Practices

• Implement central platform to capture all deposits by outlet
• Implement automated reconciliation tools where possible
• Establish clear standard operating process (SOP) to eliminate key man risk
• Perform reconciliations frequently (daily if possible)
• Maintain detailed documentation of all reconciliation activities
• Regularly review and update reconciliation processes as business needs change
• Not mixing petty cash and cash sales deposit
• Deposit individual day sales instead of consolidating multiple days

Cash Reconciliation

Deposit Forms

We provide a form for outlets to key in details of their deposit and take a photo of their CDM deposit or cash bag number to facilitate reconciliation.

Reconciliation Logic

Cash at risk is the main metrics, user will monitor and track.

The reconciliation perform is a 3 way reconciliation where we will reconcile the numbers in the deposit declaration with the POS cash sales and with the deposit captured in the bank statement.

The reconciliation will highlight the number of days of sales missing so that in the event where there is a breech against company policy, it will be highlighted in red to prompt for actions to be taken.

In the event of deposit via CDM (Cash Deposit Machine), cents are not possible for deposit and will be accumulated till the end of month, where outlet will clear at one go.