How Do You Open The Sales In

Opening the sales in is a crucial step for any business that handles cash transactions. It's more than just unlocking the register; it's about establishing a solid foundation for accurate accounting, loss prevention, and a smooth workflow throughout the day. A well-executed opening procedure ensures that you start with a clear picture of your available funds and sets the stage for responsible financial management.

The Importance of a Properly Opened Sales In

Before diving into the "how-to," let's emphasize why this process matters. Think of opening the sales in as setting the control for an experiment. If your control is off, the results will be unreliable. Similarly, if your opening cash count is incorrect, every transaction that follows will be skewed, leading to potential discrepancies and difficulties in reconciliation. Here's a breakdown of the key reasons:

• Accurate Tracking: A precise starting balance allows you to accurately track sales, cash flow, and any potential shortages or overages.
• Loss Prevention: By establishing a documented opening balance, you create a baseline for detecting theft or employee errors. Discrepancies are more easily identified when you know exactly how much cash should be in the drawer.
• Efficient Reconciliation: At the end of the day, comparing your closing balance with the expected balance (based on sales and the initial opening amount) becomes much simpler and faster.
• Employee Accountability: Having a clear opening procedure ensures that employees understand their responsibility for the cash they handle and promotes a culture of financial responsibility.
• Audit Trail: Opening and closing procedures create a paper trail or digital record that can be invaluable during audits or internal investigations.

Step-by-Step Guide to Opening the Sales In

Now, let's walk through the process of opening the sales in. While the exact steps may vary slightly depending on your point-of-sale (POS) system and business type, the core principles remain the same.

1. Gather Necessary Supplies:

Before you even approach the cash drawer, make sure you have everything you need:

• Cash Drawer Keys: Obviously essential!
• Currency Counter (Optional): A currency counter speeds up the counting process, especially for large amounts of cash.
• Calculator: For verifying totals.
• Opening Balance Sheet/Form: A pre-printed or digital form to record the details of the opening count. This should include fields for:
  • Date and Time
  • Employee Name/ID
  • Denomination Breakdown (number of bills and coins for each denomination)
  • Total Opening Balance
  • Signature of the Employee Opening the Drawer
• Pens: For completing the form.
• POS System Access: You'll need to log in to your POS system to record the opening balance electronically.
• Change Fund: A predetermined amount of cash, including bills and coins of various denominations, used to provide change to customers.

2. Access the Cash Drawer:

• Unlock the Drawer: Use the appropriate key to unlock the cash drawer.
• Remove the Cash Drawer Tray: Carefully remove the tray from the cash drawer. This will allow you to count the money more easily.

3. Count the Cash:

This is the most critical step. Accuracy is paramount.

• Separate by Denomination: Organize the cash into separate stacks for each denomination (e.g., $100 bills, $50 bills, $20 bills, $10 bills, $5 bills, $1 bills, quarters, dimes, nickels, pennies).
• Count Each Denomination: Carefully count the number of bills or coins in each stack. Use the currency counter if you have one.
• Double-Check Your Count: It's always a good idea to recount each denomination to minimize errors.
• Calculate the Total for Each Denomination: Multiply the number of bills or coins in each denomination by its value (e.g., 10 twenty-dollar bills = $200).
• Calculate the Total Opening Balance: Add up the totals for each denomination to arrive at the total opening balance.

Example:

4. Record the Opening Balance:

• Complete the Opening Balance Sheet/Form: Fill out all the required information on the opening balance sheet, including the date, time, employee name/ID, denomination breakdown, and total opening balance.
• Enter the Opening Balance into the POS System: Log in to your POS system and navigate to the "Open Sales In" or equivalent function. Enter the total opening balance into the system. Some POS systems may require you to enter the denomination breakdown as well.
• Verify the Entry: Double-check that the opening balance entered into the POS system matches the total on the opening balance sheet.

5. Secure the Cash Drawer:

• Return the Cash Drawer Tray: Carefully place the cash drawer tray back into the cash drawer.
• Close and Lock the Drawer: Close the cash drawer completely and ensure that it is locked.

6. Store the Opening Balance Sheet/Form:

• File the Form: Store the completed opening balance sheet in a secure location, according to your company's record-keeping policies. This may involve physical filing or electronic storage.

7. Begin Sales Transactions:

• Ready to Operate: Once the opening balance is recorded and the cash drawer is secured, you are ready to begin processing sales transactions.

Best Practices for Opening the Sales In

To ensure a smooth and accurate opening process, consider these best practices:

• Designate Responsibility: Clearly assign responsibility for opening the sales in to specific employees. This ensures accountability and prevents confusion.
• Standardize the Procedure: Develop a written procedure for opening the sales in and train all employees on the procedure. This ensures consistency and reduces errors.
• Use a Checklist: Create a checklist of all the steps involved in opening the sales in. This helps employees stay organized and ensures that no steps are missed.
• Provide Adequate Lighting: Ensure that the area where the cash is being counted is well-lit. This makes it easier to see the denominations and reduces the risk of errors.
• Minimize Distractions: Avoid distractions during the counting process. This helps employees focus and reduces the risk of errors.
• Implement Dual Control (Recommended): Have two employees present during the opening process. One employee counts the cash, and the other employee verifies the count and signs off on the opening balance sheet. This significantly reduces the risk of errors and theft.
• Regularly Review the Procedure: Periodically review the opening procedure to ensure that it is still effective and efficient. Make changes as needed to adapt to changes in your business operations or POS system.
• Maintain Accurate Records: Keep accurate records of all opening balances, including the date, time, employee name, and total amount. This information is essential for reconciliation and auditing purposes.
• Address Discrepancies Immediately: If any discrepancies are found during the opening process, investigate them immediately and take corrective action. This may involve recounting the cash, reviewing security footage, or interviewing employees.
• Consider Using Technology: Explore using technology to streamline the opening process. This may include using a currency counter, a POS system with integrated cash management features, or a mobile app for recording opening balances.

Addressing Common Issues and Troubleshooting

Even with the best procedures, problems can sometimes arise during the opening process. Here are some common issues and how to address them:

• Cash Drawer Won't Open:
  • Check the Key: Make sure you are using the correct key and that it is fully inserted into the lock.
  • Check for Obstructions: Ensure that there are no obstructions preventing the drawer from opening, such as loose coins or paper clips.
  • Check the Power Supply: If the cash drawer is electronically controlled, make sure that it is properly connected to the power supply.
  • Consult the POS System Manual: Refer to the POS system manual for troubleshooting tips.
• Discrepancy Between Physical Count and POS System:
  • Recount the Cash: The first step is always to recount the cash to ensure that there were no errors in the initial count.
  • Review Previous Day's Closing: Check the previous day's closing report to ensure that the closing balance was accurate.
  • Check for Recent Transactions: Verify if any transactions were processed between the closing of the previous day and the opening of the current day.
  • Investigate Potential Theft or Errors: If the discrepancy cannot be explained by a simple error, investigate the possibility of theft or employee errors. This may involve reviewing security footage or interviewing employees.
• POS System is Down:
  • Follow Backup Procedures: If your POS system is down, follow your company's backup procedures for processing sales transactions. This may involve using a manual cash register or a mobile payment app.
  • Contact Technical Support: Contact your POS system vendor for technical support.
• Employee Absent or Late:
  • Assign a Backup Employee: Designate a backup employee to open the sales in if the assigned employee is absent or late.
  • Adjust the Schedule: Adjust the employee schedule to ensure that someone is always available to open the sales in.

The Psychological Impact of a Good Opening Procedure

Beyond the financial aspects, a well-defined and consistently followed opening procedure has a positive psychological impact on employees.

• Reduced Stress: Knowing exactly what to do and having a clear process reduces stress and anxiety associated with handling cash.
• Increased Confidence: Employees feel more confident in their ability to manage cash accurately.
• Improved Morale: A fair and transparent process promotes a sense of trust and fairness, leading to improved employee morale.
• Enhanced Professionalism: Adhering to a professional procedure enhances the perception of professionalism and competence.

Adapting the Opening Procedure to Different Business Types

The specific steps involved in opening the sales in may need to be adapted to suit the unique needs of different business types.

• Retail Stores: Retail stores typically have a larger number of transactions and a greater volume of cash. The opening procedure should be designed to handle this volume efficiently and accurately.
• Restaurants: Restaurants often have a smaller number of transactions but a higher average transaction value. The opening procedure should focus on accuracy and loss prevention.
• Service Businesses: Service businesses may have a mix of cash and credit card transactions. The opening procedure should account for both types of transactions.
• Mobile Businesses: Mobile businesses, such as food trucks or farmers' market vendors, need a portable and efficient opening procedure. This may involve using a mobile POS system and a smaller cash drawer.

The Future of Opening the Sales In: Automation and Integration

Technology is constantly evolving, and the future of opening the sales in will likely involve greater automation and integration.

• Automated Cash Counters: Advanced cash counters can automatically count and verify cash, reducing the risk of errors and speeding up the process.
• Smart Safes: Smart safes can automatically track cash deposits and withdrawals, providing real-time visibility into cash levels.
• Cloud-Based POS Systems: Cloud-based POS systems can integrate with other business systems, such as accounting software and inventory management systems, providing a more holistic view of financial performance.
• Biometric Authentication: Biometric authentication can be used to verify the identity of employees opening the sales in, reducing the risk of fraud.

Conclusion

Opening the sales in is a fundamental process that plays a crucial role in the financial health and operational efficiency of any business that handles cash. By implementing a well-defined procedure, adhering to best practices, and embracing technology, businesses can ensure accuracy, prevent losses, and create a positive work environment for employees. Taking the time to establish a solid foundation at the beginning of each day will pay dividends in the long run, leading to improved financial management and greater peace of mind. Remember, a well-opened sales in is the first step towards a successful and profitable day.