What is a POS reconciliation?
Point of sale (POS) reconciliation is the process of comparing the records in the POS system and the amount of cash in the store to see if all figures are correct. This is because, during the transaction activities, there might be cash mishandling or incorrect tip entered into the system. If there is a discrepancy, its cause should be identified as soon as possible. Reconciliation is often done at the end of each business day or shift.
Benefits of POS reconciliation
- Prevent accounting errors: Even the smallest discrepancies can add up and become a bigger problem. A regular reconciliation may help to identify the mismatch and fix it timely before it interferes with other business activities.
- Identify unauthorized transactions: Reconciliation can help to identify sneaks and thieves among your employees. This problem is no longer rare, and reconciliation can provide you with records and monitor your workforce better.
- Support inventory management: You can have a tool to keep track of what has been out of stock and how fast you can sell particular items.
- Save unnecessary costs in the future: Performing regular reconciliation can help identify the problem soon and prevent any big regret in the future.
What are the steps needed to do POS reconciliation?
Here are the essential steps to perform an accurate POS reconciliation:
- Gather and compare all information from your POS sales transactions and cash-on-hand from the register/credit card batch statements.
- Take note of discrepancies. Discrepancies may include any transaction without a corresponding entry, or differences between the cash you have and the amount reported in the system.
- Keep a log of reconciliation for any future purposes, including accounting or tax-related tasks.
- Repeat the process if necessary. Sometimes the mistakes come from the POS reconciliation itself, so be aware of that.