Closing your register at the end of each business day is a mandatory and critical final step in your daily operating process. It finalises all transactions for the day, reconciles your cash takings, and prepares your financial data for accurate reporting. This guide will walk you through the correct procedure to close a register, ensuring your records are accurate and complete.
Overview
Adhering to the One Poolwerx Way for financial management, the daily closure of all registers, including van or service outlets, is essential. This action is crucial for your business's financial health, as it ensures that your Cost of Goods Sold (COGS) is correctly recognised in Xero. Failing to close your register can lead to significant discrepancies in financial records, affecting your daily reconciliation and cash flow tracking. A successful register close provides a definitive summary of the day's sales.
Prerequisites: All transactions and sales for the day must be processed and completed before you can close the register.
Step-by-Step Process
Follow these steps to accurately close a register:
- Log into Lightspeed.
- Click the Shopping cart icon, then click Open/Close.
- The first main section of the register closure page will be the Cash Count.
- Count all the cash in the cash drawer and enter the number of each denomination of cash into its respective Quantity field. This should include cash payments, floats and cash movements.
- As you enter each quantity, the Amount field will automatically update, providing you with an ongoing CASH TOTAL. This will also auto-populate into the Counted ($) field in your Payments Summary section.
- If there is a discrepancy in the cash amount, you can enter a note in the Notes section to explain the reason (e.g., "Cash short due to change error").
- Continue down to the Payments Summary section.
- Complete your Windcave terminal End of Day process to calculate the sum of takings for that day. Confirm that the value is reflected in the register closure. Input the value into the Counted ($) field beside the expected amount.
- If you're using additional payment types, enter the Counted ($) value for each payment type.
- Optionally, add a note in the Note field.
- Click Close register. The register will now be closed, and your daily sales summary will be saved and posted to Xero.
To close additional registers:
- Click Switch under the outlet and register name in the top left corner of the screen.
- Click Switch Register which will open a dialogue box.
- Click the outlet, and then the register you want to close.
- Repeats steps 1 to 8 above.
Key Considerations & Best Practices
- Count Twice
- Always double-check your physical cash count, especially if there is a discrepancy. This simple step can prevent most reconciliation errors.
- Discrepancies
- If there is a significant discrepancy, do not close the register until you have investigated the cause. A small variance is common, but large differences should be addressed immediately.
- Daily Routine
- Make closing the register a non-negotiable end-of-day task. This ensures consistency and prevents data inaccuracies.
Frequently Asked Questions
What happens if I forget to close my register?
The register will remain open overnight. This can lead to financial discrepancies, as the system will not have a clear end-of-day record. It may also lead to issues with COGS recognition in Xero. You will need to close the register as soon as possible the next day.
Why is my counted cash amount different from the expected amount?
Common reasons include incorrect change given to a client, a miscounted float at the start of the day, or a transaction that was not properly recorded. Review your transaction history for the day to identify the source of the discrepancy.
Related Guides & Next Steps
Deep Dive: For an overview of the full process, see our guide on Register Management.