The short answer
- A cash float (also called a till float, starting cash or opening bank) is the change you put in the till at opening so you can give customers change. It is not sales: it was already the business’s money.
- There is no official amount. Work it out: average change you give × the number of early customers before sales start feeding the till, usually the first ten to fifteen. In our examples that comes to $150 or £100.
- Keep the float the same amount and the same mix of notes and coins every day. At closing, take the float out first; everything left is the day’s cash takings.
- Over/short = cash counted − (float + cash sales recorded − cash paid out). Record it every day, even when it is zero, and never adjust sales to make the till balance.
- Keep the evidence: HMRC lists till rolls among the records a self-employed person must keep, and the IRS lists cash register tapes as supporting documents for gross receipts.
What the float is, and what it isn’t
You put $150 in the drawer at 9am. At 6pm the drawer holds $842.25. You did not take $842.25 in cash: $150 was there before the first sale. Forget that, day after day, and your recorded takings are overstated. Forget to put the float back one morning, and the evening count looks like theft.
The float is neither income nor an expense. The first time you set it up, it is a transfer: money moved from the business bank account (or your own pocket) into the till. After that it stays in the business, going back into the drawer every morning at the same amount.
If you sell at markets rather than from a shop, our guide to selling at markets walks through a whole market-day cash sheet, including stock taken out and brought back. This guide focuses on the float itself: how much, in what change, how to count it, and what to do when the numbers don’t match.
How much float do you need?
Answer three questions.
- What is a typical sale? A $3.75 coffee and $65 jeans need very different change.
- What do customers hand over? Early in the day that is often a $20 from the ATM, or a £20 or £50 note on a Saturday.
- How many customers before sales refill the till? Usually the first ten to fifteen.
Then: average change × early customers, rounded up.
A coffee cart in Portland with a $3.75 average, where most cash customers pay with a $20: $16.25 change × 10 customers = $162.50. A $150 to $175 float, heavy on $5s and $1s, covers the morning. A UK farm shop with a £12 average paid with a £20: £8 change × 12 customers = £96, so a £100 float. A gift shop with a $35 average paid with a $50 needs $15 × 10 = $150, mostly in $10s and $5s.
A bigger float is not safer. It is idle money, more to lose if the till is robbed, and longer to count. A float that is too small costs sales when you cannot make change.
What the float should contain
The mix matters more than the total. Two example floats:
| US float, $150 | Amount |
|---|---|
| 3 × $10 | $30.00 |
| 8 × $5 | $40.00 |
| 58 × $1 | $58.00 |
| 1 roll of quarters (40) | $10.00 |
| 2 rolls of dimes (50 each) | $10.00 |
| 1 roll of nickels (40) | $2.00 |
| Total | $150.00 |
3 × $10
Amount$30.00
8 × $5
Amount$40.00
58 × $1
Amount$58.00
1 roll of quarters (40)
Amount$10.00
2 rolls of dimes (50 each)
Amount$10.00
1 roll of nickels (40)
Amount$2.00
Total
Amount$150.00
| UK float, £100 | Amount |
|---|---|
| 3 × £10 | £30.00 |
| 6 × £5 | £30.00 |
| 10 × £2 | £20.00 |
| 10 × £1 | £10.00 |
| 10 × 50p | £5.00 |
| 15 × 20p | £3.00 |
| 10 × 10p | £1.00 |
| 20 × 5p | £1.00 |
| Total | £100.00 |
3 × £10
Amount£30.00
6 × £5
Amount£30.00
10 × £2
Amount£20.00
10 × £1
Amount£10.00
10 × 50p
Amount£5.00
15 × 20p
Amount£3.00
10 × 10p
Amount£1.00
20 × 5p
Amount£1.00
Total
Amount£100.00
Write your mix on a card taped inside the drawer. Counting the float then takes a minute, and a gap jumps out ("only eight £2 coins"). If your prices end in 99, you also need small coins; if they end in 0 or 5, you can skip them.
Cashing up at closing
- 1Count by denominationNotes, then coins, writing down how many of each. Never estimate a pile.
- 2Take out the floatRebuild it straight away with the same mix and set it aside for tomorrow.
- 3Work out cash takingsWhatever is left is today’s cash income.
- 4Compare with recorded salesThe Z report from your till, or your own tally of cash sales. The difference is your over/short.
- 5Record and bankTakings, over/short and any explanation on the sheet. Record the bank deposit as a transfer, not as more sales.
A cash-up sheet you can copy:
CASH-UP SHEET — [date] — [shop]
Count (number × value)
$20 bills [ ] × 20 = [ ]
$10 bills [ ] × 10 = [ ]
$5 bills [ ] × 5 = [ ]
$1 bills [ ] × 1 = [ ]
Quarters [ ] × 0.25 = [ ]
Dimes [ ] × 0.10 = [ ]
Nickels [ ] × 0.05 = [ ]
CASH COUNTED [ ]
− Float $150.00
+ Cash paid out today [ ]
= ACTUAL CASH TAKINGS [ ]
Cash sales recorded [ ]
OVER / SHORT [ ]
Explanation [ ]
Deposited at bank [ ]
Signed [ ]
A worked example. Cash counted: $842.25. Float: $150. During the day you paid $18.50 in cash for milk from the store next door. Actual takings: $842.25 − $150 + $18.50 = $710.75. Your till shows $714.00 of cash sales. Short by $3.25.
When the till is over or short
A small difference now and then is normal: a coin given back twice, a sale rung up at the wrong price, an item handed over and not entered. What matters is the pattern, and you only see it if you write down every result, including the zeros.
| What you see | Common causes | What to do |
|---|---|---|
| Small differences in both directions | Change-giving errors, rounding | Keep recording them |
| Short again and again, same shift or same person | Rushed change, missed entries, theft | Count together at shift change, check the float at the start of each shift, ring up before taking payment |
| Regularly over | Cash taken without the sale being rung up, a refund recorded but never paid out | Fix the recording. An overage is not a bonus: it is income recorded in the wrong place |
| Short by exactly the float | Float forgotten in the sum, or not put back that morning | Fix the opening routine |
| Your records show the till below zero | A cash expense recorded, the matching cash sale missed | Look for the missing income. A real drawer cannot hold less than nothing |
Small differences in both directions
Common causesChange-giving errors, rounding
What to doKeep recording them
Short again and again, same shift or same person
Common causesRushed change, missed entries, theft
What to doCount together at shift change, check the float at the start of each shift, ring up before taking payment
Regularly over
Common causesCash taken without the sale being rung up, a refund recorded but never paid out
What to doFix the recording. An overage is not a bonus: it is income recorded in the wrong place
Short by exactly the float
Common causesFloat forgotten in the sum, or not put back that morning
What to doFix the opening routine
Your records show the till below zero
Common causesA cash expense recorded, the matching cash sale missed
What to doLook for the missing income. A real drawer cannot hold less than nothing
One rule is not negotiable: don’t change the sales figure to make the till balance. Put the difference on its own line. It is honest, it keeps your takings record reliable, and it is the only way a repeating problem becomes visible.
Records to keep
The till and the float produce evidence the tax authority expects you to keep.
- UK. HMRC’s list of records for the self-employed includes “sales invoices, till rolls and bank slips” as proof of sales and income. Keep them for at least 5 years after the 31 January submission deadline of the tax year they relate to: records for a 2025–26 return filed by 31 January 2027 must be kept until at least the end of January 2032.
- US. The IRS lists cash register tapes, deposit information for cash and credit sales, and receipt books among the documents that support gross receipts. The general rule is to keep records for 3 years, and longer in some cases, such as 6 years if you under-report income by more than 25%.
Your daily cash-up sheet is the bridge between the till roll and your books: one line per day with cash takings, card takings and over/short. If business and personal cash share a wallet, read our guide to separating personal and business records first.
Recording the day in Binome360
In Binome360 you keep a "Cash box" account by hand, next to your bank account, inside an assistant just for the shop. At closing you type or say the day in one sentence; the app prepares the entries and waits for your confirmation before saving anything.
Cashed up: $710.75 cash takings after float, paid $18.50 cash for milk, short $3.25. Banking $600.
Ready in your "Coffee cart" assistant: $710.75 cash sales to "Cash box", an $18.50 expense under "Supplies", a $3.25 cash shortage recorded separately, and a $600 transfer from "Cash box" to "Bank". Save it?
The $150 float stays in the "Cash box" account.
Try Binome360 for freeYou can ask the app to remember your float mix ("remember my float is 3 tens, 8 fives, 58 ones…") and set a daily 6pm reminder to cash up. Binome360 is not a point-of-sale system and does not take payments at the counter. It keeps track of your money, stock and margins; our guide to inventory management covers the stock side.
Frequently asked questions
Is the cash float counted as income?
No. It is money the business already had, moved from the bank or from you into the till. Only the day’s sales are income. Record the first float as a transfer, and never add it to takings.
How much float should a small shop keep?
There is no rule. Multiply the average change you give on the most common note by the number of customers before sales start refilling the till, and round up. In our examples that gives $150 for a coffee cart or gift shop and £100 for a farm shop, but your own sums are what count.
How do I record a cash shortage?
On its own line, never by changing sales. Note the date, amount and any explanation. Your accountant can tell you how over/short amounts are treated in your books; what matters day to day is that they are visible.
Should the float be the same every day?
Yes. A fixed amount and a fixed mix make the count faster and differences obvious. Change it only when your prices or customer habits change, and write the new amount on the card in the drawer.
In short
A fixed float in the right change, sized from your typical sale; a note-by-note count every evening; a separate line for any difference. Those three habits keep your cash takings accurate, make problems visible early, and give you the daily totals your records need.
First step: tonight, count your till by denomination and write tomorrow’s float mix on a card inside the drawer.
Sources
- HM Revenue & Customs, "Business records if you’re self-employed: what records to keep": gov.uk.
- HM Revenue & Customs, "Business records if you’re self-employed: how long to keep your records": gov.uk.
- Internal Revenue Service, "What kind of records should I keep": irs.gov.
- Internal Revenue Service, "How long should I keep records?": irs.gov.
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