1. Introduction

Proper cash handling and security procedures are crucial for protecting the franchise’s financial integrity and safeguarding against theft, loss, or error. This SOP outlines the procedures for managing cash transactions, securing cash on-site, making deposits, and ensuring the safety of cash drawers and tills. Franchisees must ensure that all employees are trained on these procedures and adhere to the guidelines to minimize risks and maintain operational efficiency.

2. Cash Handling Procedures

2.1 Cash Register Management

Opening the Register:

At the start of each shift, the employee assigned to manage the cash register should count and record the starting cash balance in the cash register.

Use the designated starting amount, which should be consistent across shifts (e.g., $100.00 or an amount specified by the franchisor).

Ensure that all employees handling cash are aware of the starting amount to minimize discrepancies.

Document the starting cash amount in the POS system and note any initial discrepancies.

Handling Cash Transactions:

Customer Payments: When customers pay with cash, always count the cash in front of the customer and enter the amount into the POS system. Issue a receipt for all transactions.

Change: Ensure that the correct change is given to customers. Always round to the nearest denomination (e.g., $1, $5).

No Mixing: Do not mix the cash from the cash register with personal funds or other cash drawers. Keep all payments and receipts separated.

Cash Payments Documentation:

Record every cash transaction in the POS system for auditing and reconciliation purposes.

If a transaction involves a large cash payment, note the customer’s details (e.g., receipt number, order number) to track the payment and ensure accountability.

Cash Drawer Checks:

Periodically check cash drawers throughout the shift to ensure that they are balanced.

Any discrepancies in the drawer (overage or shortage) must be documented and reported to the shift supervisor or manager for investigation.

Perform end-of-shift checks on all cash drawers and document the total cash balance before transferring it to the safe.

2.2 Credit Card and Non-Cash Payments

Processing Non-Cash Payments:

For payments made via credit cards, mobile wallets, or gift cards, ensure that all transactions are processed through the POS system.

Confirm that credit card payments are authorized and receipts are printed for customers to sign (if applicable).

Record any tips from credit card payments in the POS system and ensure they are tracked separately for employee compensation purposes.

Handling Refunds and Voids:

Any cash refunds must be handled according to the refund policy, ensuring that the POS system is updated and proper documentation is provided to the customer.

Refunds or voids should be approved by a manager or supervisor, and the reason for the transaction should be recorded in the system.

Maintain a log of refunds or voided transactions for auditing purposes.

3. Cash Security Procedures

3.1 Cash Drawer Security

Drawer Locking:

At the end of each shift, employees must ensure the cash drawer is locked and secure before leaving the register.

If a register is unattended for any reason (e.g., during breaks or shift changes), the drawer should be locked.

Cash Handling at Closing:

At the close of business, the final cash amount should be counted, and the drawer balance should be verified against the sales report in the POS system.

Any discrepancies must be recorded, investigated, and reported to the supervisor.

The cash drawer should be counted in a secure, private area, away from public view.

3.2 Safe Storage of Cash

Deposit Procedures:

Once the cash drawer has been counted and reconciled, it should be transferred to the store’s safe in a secure and timely manner.

Ensure that the safe is locked and accessible only to authorized personnel. The safe combination or key should be kept secure and should not be shared with unauthorized individuals.

Cash should be deposited in the safe immediately after the shift, and no cash should be left in the drawer overnight.

Daily Deposits:

Franchisees must make regular cash deposits to the bank according to a set schedule (e.g., daily, weekly, or as needed based on sales volume).

Large Cash Deposits: For deposits exceeding a certain threshold, such as $500 or as specified by the franchisor, consider using a third-party security service or a secure method of transportation.

Deposit Documentation: Keep a log of all deposits made, including date, amount, and recipient, and submit the deposit records to the franchisor as required.

3.3 Access Control

Authorized Personnel: Only authorized employees (e.g., managers or franchise owners) should have access to cash drawers, the store’s safe, or cash deposit procedures.

Key Control: Limit access to the safe keys and the cash register to trusted staff members. Keep a log of who has access to these keys, and ensure that they are always accounted for.

4. Cash Reconciliation Procedures

4.1 End-of-Day Reconciliation

Cash Count: At the end of each day, the cash drawer must be counted by the closing employee and compared against the sales report generated by the POS system.

Discrepancy Investigation:

Any cash drawer discrepancies (shortages or overages) must be documented and explained in writing.

Investigate and resolve any discrepancies immediately. A manager or supervisor should review and sign off on the reconciliation form.

Cash Reconciliation Form:

Complete a cash reconciliation form at the end of each day, which includes the starting cash, ending cash, total sales, and any discrepancies.

Submit the form to the franchisor as required.

4.2 Periodic Cash Audits

Franchisees should conduct random, periodic audits of cash drawers, registers, and safes to ensure proper cash handling and minimize theft or errors.

Audits should be conducted by the franchisee or management team at least once a month, with reports submitted to the franchisor for review.

5. Fraud Prevention and Security Measures

5.1 Employee Training

All employees must be trained on the proper cash handling procedures, security protocols, and the importance of safeguarding company assets.

Staff should be informed of the procedures for reporting theft or suspicious activity, and they should understand the consequences of violations.

5.2 Surveillance Systems

CCTV Monitoring: Ensure that all cash handling areas, including registers and safes, are monitored by surveillance cameras.

Review surveillance footage regularly to identify any potential security concerns or procedural breaches.

5.3 Theft Prevention

Employee Monitoring: Monitor for signs of employee theft, such as frequent voids or refunds, discrepancies in cash drawers, or patterns of theft behavior.

Customer Monitoring: Keep an eye on suspicious customer activity and prevent theft at the point of sale by maintaining awareness and vigilance.

6. Compliance and Reporting

6.1 Reporting Theft or Fraud

If theft or fraud is suspected, franchisees must immediately report the incident to the franchisor and local authorities, if necessary.

The franchisee must document all details of the incident and cooperate with any investigations.

6.2 Internal Audits

Franchisees should conduct internal audits to ensure that all cash handling, security, and reconciliation procedures are being followed.

Results of these audits should be submitted to the franchisor for review.