To run an end-of-day close-out, close all open checks, count each cash drawer, compare it to the POS cash report, reconcile card totals to your processor, record any over or short, and make the deposit. A consistent 15-minute routine catches errors the same night, which is far easier than finding a missing $200 at month end.
Why the nightly close matters
Small cash and card errors compound. A $5 short each night is over $1,800 a year, and unclosed tabs or tip errors create payroll and tax headaches. A written close-out routine also deters theft, because staff know the numbers are checked every day. It feeds your monthly financial close and your bookkeeping with clean daily records.
Step 1: Before you close, clean up the system
Make sure every check is paid or voided, tabs are closed, and every server has adjusted tips. Look for open orders, pending online orders and unsent payments. Resolve any items still marked as "unpaid" before running the final report. Your tip payout setup should be done at this step so cash tips are paid from the right drawer.
Step 2: Count blind
Have each cashier or server count their cash without looking at the expected total, preferably in front of a manager. A blind count prevents "fixing" the number to match. Record the count, then compare it to the POS.
Step 3: Reconcile with the reports
Pull the end-of-day report and match it against what you actually have:
| Line | Where it comes from | What to check |
|---|---|---|
| Cash sales | POS report | Expected cash in the drawer |
| Card sales | POS and processor | Should match batch total |
| Tips (card and cash) | POS tip report | Matches payouts |
| Gift cards sold and redeemed | POS | Ties to liability; see gift card accounting |
| Voids, comps, discounts | POS | Reviewed and approved |
| Paid-outs | Receipts | Each one has a receipt |
Expected cash equals opening bank plus cash sales, minus cash tips paid out and paid-outs. Subtract that from the actual count to get your over or short. The free worksheet does this math for you.
Step 4: Investigate variances
Set a tolerance, such as $5 per drawer. Anything bigger gets a written note: what happened, who was on the drawer and what was done. Repeated shortages tied to one person are a signal to retrain or review video. See Understanding Restaurant Cash Handling Controls and How to Prevent POS Fraud and Errors.
Takeaway: Count blind, compare to the POS report, and write down every variance over your tolerance. Do it the same night, every night.
Step 5: Make the deposit and leave the bank
Remove the deposit, leave the opening bank for tomorrow, and seal the deposit in a bag with the date and total. Make deposits daily or at least several times a week, and avoid keeping large amounts overnight. Record the deposit in your books and match it to the bank statement later.
Step 6: Check card batches and chargebacks
Confirm the card batch settled and totals match. A mismatch often signals a failed payment or an offline transaction. Keep an eye on disputes; How to Handle Credit Card Chargebacks at Your Restaurant explains how to respond.
Make the POS do the heavy lifting
A good POS automates most of this: guided drawer counts, an over/short report, a tip summary and a daily sales email. Cobblestone POS includes end-of-day reports, reporting dashboards and its AI assistant Daisy for free, with no monthly fee, so owners can review the close from their phone. Pair it with your sales data routine to spot trends.
A closing checklist
- All checks paid or voided
- Tips adjusted and paid out
- Blind count of each drawer
- POS report compared to count
- Variances noted and explained
- Deposit sealed and logged
- Reports reviewed or emailed to the owner
Fifteen minutes each night keeps cash honest and your books accurate.
Download the end-of-day cash reconciliation worksheet