Cash drawer count: 6 steps to catch shortages

A daily cash drawer count means counting the money in the till at the end of every shift and comparing it with what should be there according to recorded sales. It catches a shortage or an overage on the same day, instead of weeks later when the cause and the person responsible are hard to find. Six steps are enough: a fixed opening float, recording every payout the moment it happens, separating card sales from notes and coins, counting by denomination before seeing the system figure, working out the difference with one formula, and a signed handover with a deposit. Below: the steps, the formula with an example, and what the Labor Law says about deducting a shortage.

Why does the cash drawer come up short in the first place?

Most shortages are not theft. The usual causes are extra change handed to a customer during a rush, a cash refund that was never recorded, a small expense taken from the drawer for water or bags, the owner taking cash without writing it down, and a card payment recorded as cash or the other way round. Each of these becomes untraceable if a whole week is counted at once.

Notes and coins are also a shrinking share of sales. The Saudi Central Bank announced that electronic payments reached 85% of the number of retail payment transactions by individuals in 2025, up from 79% in 2024, with about 14.6 billion transactions compared with 12.6 billion (SAMA announcement). For a shop owner, that means less money in the drawer, so any gap stands out, and the count now includes reconciling the card terminal.

How do I count the cash drawer at the end of a shift? Six steps

1. Start every shift with a fixed opening float

Set a fixed amount of change that always stays in the drawer, say 500 riyals, and have the cashier receive it counted at the start of the shift. A fixed float keeps the formula simple: whatever is above the float at the end of the shift is roughly the day's takings in notes and coins.

2. Record every payout the moment it leaves the drawer

Refunds paid in cash, small expenses and owner withdrawals all need to be recorded with the amount, the reason and the name of whoever took the money. Small expenses have their own method, covered in our guide to petty cash and expense claims, and they should come from a separate float, not from the till.

3. Separate card and transfer payments from cash

Print the closing report from the card terminal and compare its total with card sales in the system. If they match, any gap in the drawer has a cause inside the drawer. If they do not, a card payment was probably recorded as cash or the other way round, which explains a gap in the drawer without any real shortage.

4. Count the money by denomination before you see the system figure

The cashier counts the money one denomination at a time, writes down the count and total for each, and only then sees the system figure. This is called a blind count and it stops the counter drifting towards the number they expect. A second person should be present, such as the cashier taking the next shift or a supervisor.

5. Work out the difference with one formula

Expected cash = opening float + cash sales − cash refunds − expenses paid from the drawer − owner withdrawals. Then the difference = counted cash − expected cash.

A hypothetical example for illustration only: a 500-riyal float, 1,850 in cash sales, a 70-riyal cash refund and a 30-riyal expense. The expected amount is 2,250 riyals. If the cashier counts 2,210, the shortage is 40 riyals. Record the figure even when it is small, because repeated small shortages reveal a problem far better than one large shortage does.

6. Document, hand over and deposit

Write a short record with the date, the shift, the cashier's name, the counted amount, the expected amount and the difference, signed by the cashier and the person receiving the drawer. Leave the float in the drawer and deposit the rest, or hand it to the owner against a signature. Add a surprise cash count once a week at an unexpected time, because it reveals what the routine end-of-shift count can hide.

Counting on paper versus a closing message

In Fahim, the cashier sends one WhatsApp message at the end of the shift, typed or as a voice note, such as: "Evening shift close: counted 2,210, card 3,860". The system compares both figures with recorded sales and records any difference under the responsible cashier's name, as on the POS and cashier system page. A payout from the drawer is a message at the moment it happens: "Took 30 from the drawer for bags". The owner asks from their phone, "What were the drawer shortages this month for each cashier?", and gets the answer as a report.

Can I deduct a shortage from the cashier's salary?

Article 91 of the Labor Law published on the Ministry of Human Resources website states that if a worker, through their own fault or by breaking the employer's instructions, causes the loss of machines or products owned by the employer or in the worker's custody, the employer may deduct the amount needed from the worker's wage, provided it does not exceed five days' wages in any month. The worker may object before the labor court, either party has fifteen working days to object, and if the court rules for the worker, the amount deducted without right must be returned within seven days of the ruling.

Article 92 requires the worker's written consent for any deduction from wages for private claims, except in listed cases that include fines and the amount deducted for what the worker damaged. So do not make deductions automatic: document every difference in a signed record, set out in your work regulations or contract how drawer differences are handled, and check the official text or an adviser before any deduction.

Frequently asked questions

How often should I count the cash drawer?

At the end of every shift and whenever the drawer passes from one cashier to another, because a difference has to belong to one shift. Add a surprise count once a week at an unexpected time.

What should I do if the drawer has more than expected?

Extra money in the till is not profit. It is usually a card payment recorded as cash, change not given to a customer, or a refund recorded but not paid out. Record it the same way as a shortage, check the card terminal report first, and do not mix it into the next day's sales.

What is the difference between a cash drawer count and petty cash?

A cash drawer count matches the sales money in the till against what the system recorded. Petty cash is a fixed amount held by an employee for small expenses and settled later with receipts. Keep them separate.

Do I need a POS system to count the drawer?

No, a sheet of paper and one formula are enough, provided cash sales are recorded accurately. A system, however, calculates the expected amount automatically, keeps every difference under the right name and totals the month's shortages without paperwork.