Both a cash bank and a cash drawer are components used to manage cash, but they serve different operational roles. It is critical to understand that in your POS, both of these are set up and tracked using a single feature: the Cash Bank function. This function assigns a starting cash amount to a specific employee, which the system then uses to track all of their cash transactions for the shift, whether that cash is held in a physical drawer or as a virtual bank.

Cash Drawer Overview

The cash drawer is a physical component of a POS terminal, a secure compartment where cash is stored during transactions.

• It contains a till with designated sections for different denominations of currency.
• Cash drawers are typically assigned to an individual user when they log onto a terminal, providing a controlled environment for managing cash transactions.
• To prevent theft and allow for auditing, the cash drawer opens only during specific events, such as the start of a shift, a cash transaction, or the end of a shift.
• Access to the cash drawer might be further secured through manager approvals or physical keys, enhancing the control over cash operations.

Cash Bank Overview

A cash bank is the financial concept of a starting fund, or "float," allocated to an employee, primarily used for making change throughout their shift when they are not tied to a single drawer.

• Unlike the tangible cash drawer, a cash bank is a virtual representation of the cash allocated to a server or employee, primarily used for making change throughout their shift.
• The cash bank starts with a set amount, often provided in a "cash room," where a manager records the distributed amount in the POS system.
• At the end of a shift, the user must account for both the cash taken in from sales and the initial change fund.
• For example, if a server starts with a $100 cash bank and collects $1000 in cash sales, they are responsible for submitting $1100 at the shift's end, irrespective of the denominations.
• This process creates an audit trail in the POS, allowing management to verify if the user's cash submissions are accurate, over, or short.
• Additionally, if the server receives tips via credit card transactions and these are paid out in cash, the cash bank system will track these transactions, ensuring financial accountability.

Key Differences

• Hardware vs. Concept: The cash drawer is the physical, lockable hardware at a terminal. The cash bank is the financial concept of a starting fund assigned to an employee.
• Usage: A cash drawer is fixed to a specific POS terminal. A conceptual cash bank is mobile and carried by the employee (e.g., in an apron) for making change anywhere in the establishment.
• Management Function: This is the most important distinction. Both the physical cash drawer and the conceptual cash bank are opened, assigned, and tracked using the single Cash Bank function in the POS.
• Assignment & Accountability: The Cash Bank function always assigns a cash total to a specific employee. This provides a clear audit trail for that person's financial responsibility for the entire shift, regardless of whether they used a physical drawer, a virtual bank, or both.

For instructions on the Cash Bank function in the POS, click here.