How-to · Customers and sales
How to record cash sales from a till
Record each day's till total as one sales entry from the end-of-day (Z) report: sales and sales tax as credits, and the cash and card takings as debits to a clearing account such as Undeposited Funds. When you bank the cash, move it to the bank, and post any difference between the count and the report to Cash Over and Short.
How-to guides / Cash sales from a till
The accounting behind it
You don't need one entry per customer. The till's Z report totals the day, and one summary entry per day keeps the books readable while the till holds the detail.
Cash and card takings reach the bank on different days and in different amounts (card batches arrive net of fees). Holding the day's takings in Undeposited Funds and then depositing them lets each bank deposit match the statement.
The counted cash rarely matches the report to the cent. Small differences go to a Cash Over and Short account; large or repeated ones are worth looking into.
| Account | Debit | Credit |
|---|---|---|
| Undeposited Funds (cash and card) | Total collected | |
| Sales income | Sales | |
| Sales tax payable | Tax |
| Account | Debit | Credit |
|---|---|---|
| Bank | Cash deposited | |
| Cash Over and Short | Shortage | |
| Undeposited Funds | Cash per report |
Worked example: a Saturday's takings
The Z report shows $2,000.00 of sales plus $160.00 tax, $2,160.00 in all: $640.00 cash and $1,520.00 card. You count $637.00 in the drawer (after taking out the float), so you are $3.00 short.
On Monday you deposit $637.00 cash. The card processor pays $1,520.00 less $38.00 fees. Each deposit then matches the bank statement.
| Account | Debit | Credit |
|---|---|---|
| Undeposited Funds | $2,160.00 | |
| Sales Income | $2,000.00 | |
| Sales Tax Payable | $160.00 |
| Account | Debit | Credit |
|---|---|---|
| Checking | $637.00 | |
| Cash Over and Short | $3.00 | |
| Undeposited Funds | $640.00 |
Common mistakes
- Recording only what was banked, which hides the sales tax collected and any cash shortages.
- Depositing the till float as a sale. The float is your own cash; it stays in the drawer.
- Paying small expenses out of the till without a receipt, so the count never balances. Use a petty cash box instead.
- Recording card sales net of fees. Record the gross sale and the fee as an expense when the batch lands.
In the US and in Canada
United States
Sales tax is collected on the till total and reported on your state return. Keep the Z reports: they are your record of daily sales.
Canada
GST/HST (and PST or QST where it applies) is collected at the till and reported on your return. The CRA expects you to keep the till records that support your sales for six years.
In AcboBooks
In AcboBooks 0.2.1 the usual route is a Sales Receipt for the day, then Make Deposit. Restaurants can use Restaurant Daily Sales.
- Enter the day's sales. Go to Customers → Sales Receipts. Leave Customer (optional) on Cash customer, set Deposit to Undeposited Funds, the Date, and a Ref # such as the Z report number. Add a line per sales item with the day's totals, pick the tax rate and click Save Sales Receipt.
- Bank the cash. Go to Banking → Make Deposit, choose Deposit to and tick the receipt under Payments to Deposit.
- Post a shortage or overage. For a shortage, use the Less merchant fee line with an expense account named Cash Over and Short and the amount short. For an overage, add an Other deposit line from that account. The Net Deposit to Bank should equal the cash you banked. Click Save Deposit.
- Restaurants. Accountant → Restaurant Sales opens Restaurant Daily Sales: enter Food sales, Beverage sales, Sales tax, Tips, Cash collected and Card collected (the totals must match) and click Post daily sales. Tips go to a Tips Payable liability you pay out with Pay out tips…
Card batches can be deposited the same way, with the processor's fee on the Less merchant fee line.
Menu names are from AcboBooks 0.2.1. Not using it yet? Try it free for 15 days, with the sample company to practise on.
Questions
Do I need to record every cash sale separately?
No. One entry per day from the Z report is normal. Keep the till reports as your detail.
Where do cash shortages go?
To an expense account such as Cash Over and Short. Overages go to the same account as a credit.
Should card sales be recorded gross or net?
Gross. The processor's fee is an expense recorded when the payout reaches the bank.
Related how-to guides
Terms used here
- How to record credit card payments and fees
- Petty cash: how to record it
- Free petty cash log template
- Accounting software for retail
Updated October 25, 2026. General bookkeeping information, not tax, legal or accounting advice. Rules differ by state and province and change over time; check with the IRS, the CRA or your accountant for your own situation.
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