Cash Handling

Cash handling is one of the most fundamental and critical skills in retail, food service, banking, and any business that accepts physical currency. Every dollar that passes through your hands is your responsibility. Shortages come out of the business's profits and reflect on your professional record. Overages mean a customer was short-changed - which is equally unacceptable. This guide covers the complete set of skills and procedures for handling cash accurately, detecting counterfeit bills, managing your drawer, and maintaining the integrity of every transaction.

The Mathematics of Making Change

The Count-Up Method

The count-up method is the most reliable way to make change. Instead of subtracting in your head, you count up from the purchase amount to the amount the customer gave you.

Example: The sale is $13.67. The customer gives you $20.00.

1. Start at $13.67
2. Count pennies to the next dime: 3 pennies = $13.70
3. Count dimes to the next dollar: 3 dimes = $14.00
4. Count dollars to $20.00: 1 dollar = $15.00, 5 dollars = $20.00
5. The change is: 3 pennies + 3 dimes + 1 dollar + 5 dollars = $6.33

Why this works: You never have to subtract anything. You count forward using coins and bills, which is easier and less error-prone than mental subtraction.

Counting Change Back to the Customer

After calculating the change, count it back to the customer aloud. This serves three purposes: it confirms the amount, it builds trust, and it creates a witness to the transaction.

How to count back:

1. State the sale amount: "Out of $20.00, your change is $6.33."
2. Place the coins in the customer's hand first: "33 cents..."
3. Then the bills, one at a time: "$1 makes $14, $5 makes $19, and $1 more makes $20."
4. Some cashiers count forward from the sale amount: "$13.67, $13.70, $13.80, $13.90, $14, $15, $20."

Practice scenarios:

Sale Amount	Tendered	Change
$4.27	$5.00	$0.73
$8.53	$10.00	$1.47
$17.89	$20.00	$2.11
$23.46	$30.00	$6.54
$6.75	$7.00	$0.25
$12.38	$15.00	$2.62
$45.62	$50.00	$4.38
$31.19	$50.00	$18.81

Practice these until you can calculate the change in your head before the POS tells you the answer.

Common Cash Shortchange Scenarios

Be aware of techniques that dishonest customers use to confuse cashiers:

The quick-change artist:
The customer gives you a $10, then mid-transaction says "Oh wait, here is a $10, give me a $20 back." They create confusion through rapid exchanges, hoping you will lose track and give back more than they gave you.

Defense: Complete one transaction at a time. If a customer wants to exchange bills, finish the current sale first. Then count the exchange separately. If you get confused, stop, count the drawer, and start fresh.

The "I gave you a $50" claim:
After receiving change for a $20, the customer claims they gave you a $50.

Defense: The ledge method prevents this. Place the customer's bill across the top of the open drawer (on the ledge) until change is counted back and accepted. Then place the bill in its slot. If there is a dispute, you know exactly which bill you received.

The "wrong change" claim after pocketing bills:
The customer quickly pockets some of the change, then claims you short-changed them.

Defense: Count change back clearly, face-up, and in the customer's view. If a dispute arises, offer to count the drawer. The register tape and a drawer count will reveal the truth.

Cash Drawer Management

Drawer Organization

A well-organized drawer is the foundation of accurate cash handling.

Standard drawer layout (left to right):

Slot 1	Slot 2	Slot 3	Slot 4	Under Tray
$1 bills	$5 bills	$10 bills	$20 bills	$50s, $100s, checks, coupons

Coin cups (front to back or left to right):

• Pennies
• Nickels
• Dimes
• Quarters

Bill Handling Rules

• Face all bills the same direction - Face side up, all oriented the same way. This makes counting faster and helps you spot a bill in the wrong slot.
• Keep denominations separated - Never mix denominations in the same slot. A $10 in the $1 slot is a $9 shortage waiting to happen.
• Smooth bills flat - Crumpled bills take longer to count and can stick together, causing you to give extra.
• Stack neatly - Keep bills in neat stacks in their slots, not thrown in randomly.
• Close the drawer between transactions - An open drawer is an invitation for theft and a distraction.

Cash Drops (Mid-Shift Deposits)

When your drawer accumulates too much cash, you become a target and increase the risk of a large error.

When to drop:

• When your drawer reaches a threshold set by your manager (often when you have more than 10-15 bills in any denomination)
• When you accumulate large bills ($50s, $100s)
• When directed by a manager
• Before a break if your drawer will be unattended

How to drop:

1. Count the bills you are dropping. Write the amount on the deposit envelope.
2. Place the bills in the envelope and seal it.
3. Have a witness (if required by your store) verify the count and sign the envelope.
4. Deposit the envelope in the drop safe immediately.
5. Record the drop in your register log.

Never carry large amounts of cash across the store floor without a manager present if your store policy requires escorts.

Counterfeit Detection

Counterfeit currency costs businesses billions of dollars annually. You are the front line of defense.

Security Features on U.S. Currency

$20 Bill (Most Commonly Counterfeited)

• Security thread - Hold the bill up to light. A thin embedded strip runs vertically to the left of the portrait. It reads "USA TWENTY" and glows green under UV light.
• Watermark - Hold up to light. A faint image of Andrew Jackson appears to the right of the portrait, visible from both sides.
• Color-shifting ink - Tilt the bill. The number "20" in the lower-right corner shifts from copper to green.
• Microprinting - Tiny text readable with a magnifier appears on various parts of the bill ("THE UNITED STATES OF AMERICA" along the border of the portrait).
• Feel - Genuine currency has a distinctive crisp texture from the cotton-linen blend paper. Counterfeits printed on regular paper feel smooth and limp.
• Raised printing - Run your finger across the portrait. You should feel the texture of the ink raised above the paper surface.

Security Features by Denomination

Feature	$5	$10	$20	$50	$100
Security thread	Yes (blue UV)	Yes (orange UV)	Yes (green UV)	Yes (yellow UV)	Yes (pink UV)
Watermark	Lincoln	Hamilton	Jackson	Grant	Franklin
Color-shifting ink	No	Yes	Yes	Yes	Yes
3D security ribbon	No	No	No	No	Yes (blue)

Detection Tools

• Counterfeit detection pen - Mark the bill. Yellow/clear mark = genuine. Dark brown/black mark = likely counterfeit. Note: pens only detect regular paper. High-quality counterfeits on bleached genuine bills will pass the pen test.
• UV light - The security thread glows a specific color under UV light. This is more reliable than the pen.
• Magnifying glass - Verify microprinting is sharp and legible. Counterfeit microprinting is often blurry or missing.
• Feel and comparison - Compare a suspect bill to a known genuine bill of the same denomination. Differences in feel, color, and detail are often obvious when compared side by side.

What to Do If You Suspect a Counterfeit

1. Do not return the bill to the customer
2. Do not accuse the customer - Many people receive and pass counterfeits unknowingly
3. Contact your manager immediately
4. Delay the transaction - "I need to verify this bill with my manager. I will be right back."
5. Note the customer's description and any details about the transaction
6. Follow your company's counterfeit procedure - Most companies have a specific protocol that includes contacting local law enforcement or the U.S. Secret Service

When to Check Bills

At minimum, check every $50 and $100 bill. Many businesses also check $20 bills. If a bill feels or looks wrong, check it regardless of denomination. Trust your instincts - if something feels off, take the extra 10 seconds to verify.

End-of-Shift Procedures

Closing Your Register

1. Finish any pending transactions and log off the current sale screen
2. Run the close report (Z report) - This prints a summary of all transactions during your shift, broken down by payment type
3. Remove the cash drawer from the register
4. Count all cash systematically:
   • Count each coin denomination separately and record the total
   • Count each bill denomination separately and record the total
   • Add up the total cash in the drawer
5. Subtract the starting bank - This gives you the net cash received during your shift
6. Compare to the POS report - The system knows how much cash should be in the drawer based on the transactions it processed

The Reconciliation

Your counted cash minus the starting bank should equal the POS cash sales total.

Example:

• Starting bank: $150.00
• Total cash in drawer: $487.53
• Net cash: $487.53 - $150.00 = $337.53
• POS cash sales report: $338.00
• Variance: -$0.47 (shortage)

A shortage of $0.47 is within most stores' acceptable range. Record it and move on.

Preparing the Bank Deposit

1. Calculate the deposit - Total cash minus the next shift's starting bank
2. Count the deposit by denomination and record each on the deposit slip
3. Verify the total matches what you expect
4. Seal in a deposit bag with the deposit slip inside
5. Sign and date the bag
6. Dual verification - If your store requires it, have a second person count and co-sign
7. Drop in the safe immediately
8. Record the drop in the daily log

Investigating Variances

If your drawer is off by more than the acceptable amount:

1. Recount - Count the entire drawer again. Miscounting during close is the most common cause of apparent variances.
2. Check for bills stuck together - Riffle through each stack of bills
3. Check under the tray - Bills sometimes slip under
4. Review your transaction log - Look for unusual transactions (voids, no-sales, returns) that might explain the difference
5. Check for uncollected drops - Did you make a mid-shift drop that was not recorded?
6. Report honestly - Never add or remove money to balance your drawer. This is a fireable offense at most companies.

Building Good Cash Handling Habits

Daily Habits

• Count your starting bank carefully every shift. Never assume it is correct.
• Keep your drawer organized throughout the shift, not just at the start.
• Close the drawer between every transaction.
• Place customer bills on the ledge until change is returned.
• Count change back to every customer, every time.
• Make cash drops when your drawer gets full.
• Never borrow bills from one slot to "fill in" another. If you are out of a denomination, break a larger bill from the drawer or get change from a manager.

Things That Will Get You in Trouble

• Leaving the drawer open between transactions
• Making change from your own pocket or purse
• Letting another associate use your drawer without logging in under their own ID
• "Borrowing" money from the drawer (this is theft, regardless of intent to return it)
• Not reporting counterfeit bills
• Not counting the starting bank and assuming it is correct
• Ignoring consistent shortages instead of investigating the cause

Cash Handling in Specific Environments

Drive-Through (Fast Food)

• Transactions happen fast. Count change accurately despite the pace.
• Cash and food pass through the same window. Handle cash first, then food, to avoid contamination.
• Verify the amount tendered before making change - bills are harder to see through a window.

Bar and Nightclub

• Dim lighting makes counterfeit detection harder. Use a UV light.
• Multiple tabs running simultaneously. Keep each tab's cash separate.
• Tips complicate drawer reconciliation. Record tips separately.

Farmer's Market or Pop-Up

• No POS system - you may be making change from a cash box.
• Count everything manually. Keep a running total on paper.
• Bring adequate change in small bills and coins. You cannot get more during the event.

Key Cash Handling Metrics

Metric	Target
Drawer accuracy (variance per shift)	Within +/- $1.00
Counterfeit bills accepted	Zero
Cash drops per shift	1-3 (as needed)
Starting bank verification	100% of shifts
Over/short trend	No consistent pattern

Cash Handling for Special Situations

Large Cash Transactions

Some businesses see large cash transactions regularly. Special procedures apply:

• Currency Transaction Reports (CTRs) - Federal law requires businesses to report cash transactions over $10,000 to the Financial Crimes Enforcement Network (FinCEN). Your manager handles the reporting, but you must alert them to any transaction at or above this threshold.
• Structuring - Deliberately breaking a large transaction into smaller ones to avoid the $10,000 reporting requirement is illegal. If a customer asks you to split a large cash payment, report it to your manager.
• Suspicious Activity Reports (SARs) - If a cash transaction seems designed to evade reporting or is otherwise suspicious, your company may be required to file a SAR. Report unusual cash activity to your manager.

Foreign Currency

Some businesses near borders or tourist areas accept foreign currency:

• Know your company's policy on which foreign currencies are accepted
• Use the current exchange rate posted by your manager
• Count foreign bills carefully - unfamiliar currency is easier to miscount
• Round the exchange in the company's favor as directed by policy

Making Change Without a Sale

Sometimes a customer asks you to break a large bill without making a purchase:

• Follow your company's policy - some stores allow this, others do not
• If allowed, treat it like a transaction: count the bills carefully, verify the large bill, and count the small bills back
• Record the exchange so your drawer count is not affected

Cash Security Beyond the Register

Cash handling extends beyond the register:

• Walking the deposit to the safe - Carry the deposit bag discreetly. Do not announce that you are carrying cash. Take the most direct route.
• Safe access - Only authorized personnel should access the safe. Log every safe access with the date, time, and purpose.
• Bank deposits - If you are responsible for bank deposits, vary your route and timing. Do not establish a predictable pattern.
• Robbery response - If you are robbed, comply with demands, do not resist, and activate the silent alarm if possible. Your safety is more important than any amount of cash. Report to law enforcement immediately after the incident.

Tips from Experienced Cash Handlers

• "Count everything twice. The first count finds errors. The second count confirms accuracy."
• "Never let a customer rush you. 'Just a moment while I count this back to you' is a complete sentence."
• "The ledge method saved me from countless 'I gave you a $50' arguments. Use it every single time."
• "If your drawer is off, the first thing to check is whether two bills are stuck together. Riffle every stack."
• "Do not try to make change for $100 bills from your drawer if it leaves you short of small bills. Ask a manager to break it from the safe."
• "Your cash handling record follows you. A clean record is a career asset. Consistent shortages close doors."
• "Treat every bill like it could be counterfeit. The 10 seconds you spend checking saves the $20 you lose accepting a fake."
• "The best cashiers I have trained are the ones who develop a personal routine and follow it every single time, no shortcuts."