Published on January 15, 2025 | 8 min read
A consistent, accurate daily cash-out process is the backbone of reliable restaurant finances. Whether you run a small café or a busy full-service restaurant, closing out your register correctly each night prevents discrepancies, reduces theft risk, and gives you real-time visibility into your business performance.
In this guide, we'll walk through proven best practices that successful restaurant operators use to streamline their end-of-day cash-out process.
Many restaurant owners underestimate the importance of a disciplined cash-out routine. Here's what's at stake:
Start with your POS system's end-of-day report. This should show:
Pro tip: Always include tax in your net sales figure. This keeps your cash-out math simple and matches what actually came through the register.
Your POS should break down payment methods. Record these separately:
Why separate them? Because your physical cash on hand needs to reconcile against cash sales, not total sales. Mixing them creates confusion.
This is where accuracy matters most. Follow this process:
Best practice: Have two people count independently, then compare. If there's a discrepancy over $5, recount together.
Most restaurants use a standard tip-out percentage (typically 3–5% of net sales) to cover credit card tips paid in cash. This is money you owe your servers, so it reduces your deposit.
Formula:
Tip Amount = Net Sales × Tip Percentage ÷ 100
Example: If net sales are $1,280 and your tip percentage is 4%:
$1,280 × 4 ÷ 100 = $51.20
You'll set aside $51.20 in cash to pay out tips.
This is the amount you should deposit (or have in your safe). The formula:
Balance = (Net Sales × Tip%) + Cash from Sales − Cards Collected
Or, more simply:
Balance = Tip Amount + Cash from Sales − Cards Collected
Why this works: You're adding the tip obligation (cash you owe) to the cash you collected, then subtracting what customers paid by card (which you don't have in hand yet).
Most restaurants round up to the nearest dollar to avoid dealing with coins in deposits.
| Item | Amount |
|---|---|
| Net Sales (with tax) | $1,280.00 |
| Tip % (4%) | $51.20 |
| Cash from Sales | $320.00 |
| Cards Collected | $960.00 |
| Calculated Balance | $372.00 |
Never rely on memory. Use a cash-out form (paper or digital) that captures:
Digital tools like Restro Manager let staff submit cash-outs via a secure link with auto-calculated balances and instant email alerts to ownership.
If your counted cash doesn't match the expected amount:
Small variances (under $5) are normal. Consistent shortages or overages signal a process problem or a personnel issue.
Closing at different times each night makes trends hard to spot. Pick a standard close time (e.g., 10:30 PM) and stick to it.
Never "estimate" your cash. Count it. Every. Single. Night.
Don't use the register as your personal ATM. It creates reconciliation nightmares.
A $2 shortage today, $3 tomorrow, $5 next week… that's $10/week or $520/year. Track it.
Have a manager or second employee verify the count. Two sets of eyes catch errors.
Print this and tape it to your register:
A solid daily cash-out routine takes 10–15 minutes but saves hours of headache at month-end. It protects your cash, keeps your books accurate, and gives you the financial visibility you need to make smart decisions.
Start with these best practices tonight. Your accountant (and your bank account) will thank you.
Want to automate your cash-out process? Try Restro Manager — secure link-based cash-outs with auto-calculated balances and instant email notifications.
Want to simplify your restaurant finances? Try Restro Manager — track cash-outs, invoices, and P&L in real-time with zero manual entry.
