Forgotten Point of Sale Features Still Important | Cash In Drawer Limits

Restaurant point of sale systems have loads of features that POS salespeople love to talk about. Some are glamorous, others are flashy and some are unique to their product. When showing off these new and fancy features too often these salespeople forget about the basics and why cash registers were invented in the first place.

Preventing theft. That is the purpose of a cash register. Ringing up items and safely storing cash if the fundamental philosophy that created a now multi-billion dollar industry known as the Point of Sale Industry.

Why then are so many point of sale companies, software manufacturers and POS salespeople forgetting about the fundamental principles that are still valid in today’s business environment? The answer eludes and frustrates me because valuable profits are being lost by not utilizing these basic and important features.

This is a series of articles about the fundamental features that every business should be using to stop employee theft, increase sales and increase profits.

Cash In Drawer (CID) Limit

This feature has been around since I started in the cash register business some 25+ years ago. I haven’t heard POS salespeople talk about this for over a decade and if it isn’t being used in your business you are opening yourself up for theft and possibly armed robbery of your business.

All cash registers and point of sale systems track sales and tenders. They all know how much money, checks, gift cards, credit cards and other forms of payment are in each cash drawer/till.

Most cash registers and a few point of sale software companies have the ability to set a limit on how much cash should be in each cash drawer/till. When this limit is reached the cashier is notified and then can notify management to do a cash pull from the drawer. Some systems go as far as sending a message via pager/cell phone alerting management that a cash drawer/till is over the cash limit.

Management can then go to the drawer, pull out an amount of cash, count it and enter the amount removed as a cash pull. This amount is then removed from the cash in drawer amount and lowers the overall cashier responsibility.

Do not forget that every time the cash drawer/till is opened all the cash is exposed to view and to the temptation of everyone. Not only does the money become accessible to your cashier, it is also accessible to long-armed customers who have been known to reach across when the cashier was not looking.

What could be even worse is the fact that when the cash drawer/till is open potential robbers are able to estimate and determine if your operation is worth returning for a full-scale robbery.

Cashiers like this feature in that it reduces the amount of cash they are responsible for as the cash removed is deducted from their overall cash responsibility. Cashiers also like the fact that if there is less cash in the drawer they are less apt to have a gun shoved in their face during a robbery.

Owners like this feature in that it reduces the temptation to remove money from the cash drawer/till through employee theft or through robbery.

If you are an owner, wouldn’t you like keeping more of the money in your cash drawer/till for yourself? Wouldn’t you like to reduce the chance/temptation of an armed robbery? This old-time cash register feature now found in some point of sale systems could be the exact answer to your needs.

Check your current point of sale system to see if the cash in drawer feature is even offered. If you are looking at a new point of sale system you should make sure that the cash in drawer feature is offered.

Don’t let technology dazzle you to the point that you forget about the basics features that you need to stop theft and increase profits. Those features that have been around for decades are still valid today.

Cash in drawer limits were considered an important part of any cash register and point of sale system for many years. The reason for the feature and the need to keep your cash safe never went away. Stopping theft is still a critical aspect of any point of sale system. That being the case, why should you settle for anything less than your business needs? Don’t settle for less. Demand the cash in drawer feature.

About the Author

Jerry D. Wilson has over 25 years of point of sale experience helping business owners stop employee theft and increase profits. Please visit DirecTouch POS and DirectRetail POS for more information on other features that are important to your point of sale needs.

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Comments on this article:

» left by Brent Lagerman from Brooklyn, NY (2 years 289 days ago.)

DirecTouch is the best, thanks Jerry for all the POS advice, we couldn't have gotten where we are now without you - brent
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» left by ElizaFish from New Hampshire (2 years 109 days ago.)
I want to know how to calculate what the cash in drawer limit should be in a particular situation. The store where I work has set limits that don't seem entirely workable for our high volume of business. All of us cashiers usually have more money in our drawers. But having too much money repeatedly is a firing offense. I'm not trying to buck the system, but I want to understand. I do understand the need to avoid temptation to potential robbers.
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» left by Jerry D Wilson ⁽⁴³²⁾ (2 years 109 days ago.)
Good question. Let me see if I can help clarify the amount and reason for it.

There is no set method of calculating how much the cash in drawer limit is per type of store. The method is more of a "hip shoot" than anything else. There are factors involved. Some of the may be:

1. Area the store is located in. If your's is a high-crime area then the amount may be kept lower than in other areas. I have personally seen limits as low as $100 with the additional limitation of dropping each $50 and $100 bill taken no matter what else was in the drawer.

2. Company policy may also be the driving factor. Most companies have a written policy governing cash in drawer limits.

3. The amount may also be a % of daily store business. If yours is a 24 hour store the most that should be kept in the drawer is much less than an 8-hour shift. Possibly as low as what business could be done in a 2-hour time frame or even less.

4. I have never seen a cash in drawer limit over $400.

With robberies getting more and more violent, as a potential victim of this type of crime you should be thankful for cash in drawer limits. The money in the cash drawer is not even yours. Why put yourself in danger of being shot over someone else's money?

While it may be a huge pain to do so, I would make drops on a very regular basis in order to keep myself out of harm's way. Besides, it is much easier and quicker to balance the drawer at the end of the shift if most of your cash is already counted and in drop envelopes.
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» left by ElizaFish from New Hampshire (2 years 108 days ago.)
Dear Mr. Wilson: Thanks for your answer. It is very informative. I have to confess, however, that I was asking the question from the other direction. I work for a 24 hour convenience store and we have a $75 drawer limit plus a safe with $425 (which has to remain solvent for most of 24 hours) from which we may buy funds. We drop any bills above $10. The problem is that when we are very busy, several customers in a row who make $5 purchases with $20 bills can leave the drawer just about empty. That doesn't even touch $50 and $100 bills. It seems like so much extra stress for us cashiers. But getting robbed would also be stressful, I understand. I was wondering if management has reasonable requirements or if we are being asked to jump through an unreasonable number of hoops. I was also wondering if this limit has been adjusted to account for rising retail prices. I assumed there was a "quantitative analysis" equation out there that would give me perspective. I trying to arrive at an understanding of balance. Obviously, the understanding is personal. I still have to follow the rules.
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» left by Jerry D Wilson ⁽⁴³²⁾ (2 years 108 days ago.)
While the $75 limit might seem a bit low, it is not unreasonable if you are dealing with small average tickets. For instance, if your average sale is $5 then you are able to ring up 15 customers before a drop is necessary. Obviously, if you were dealing with high ticket averages then you would be spending a lot of time doing drops.

Think about your average ticket $ size and you may come to understand the thinking of management.

There is another way of thinking about this and it comes from my experience as a cashier some years ago.

You may be thinking of the customer because you are concerned about making them wait while you do a drop. Make them wait. If management is so concerned about you keeping your drops current then make the customer wait while you make that drop.

This will either force them to reconsider the $75 amount or ease up a bit on their demands that you strictly abide by their drop rules.

Also, think of this. They are paying you to do a job. You should do that job in the manner that they describe. If part of that includes making drops at a certain point ($75) then you should do as they ask.

Ask management what they want you to do. If they want you to stop and make the drop even though it makes the customer wait then by all means do as they ask. Let the customers complain to management if they don't like waiting. Either management will listen to the customer's complaints and change or the customers will go elsewhere and you won't have to worry about having too much cash in the drawer. :-)

One more thought about constantly making drops. Thieves often act as customers before they rob the store. If they see you constantly making drops then they will be less likely to want to rob you. Not enough return for their efforts, if you know what I mean.

The thing thieves love to see is a cashier who sticks $20, $50 and $100 under the cash till instead of making the drops. Stop what you are doing and make that drop. You truly may be saving your life.
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» left by ElizaFish from New Hampshire (2 years 108 days ago.)
I'm really glad I found you online to answer my questions. You have given me a better perspective on the issue of cash limits for drawers. Although one if my chief concerns has been running out of money. I only have to wait on five customers who make $5 purchases and pay with $20 bills before I am out of money in the drawer -- unless I hold back some $20s to replenish the drawer. I have to say, though, in practice it doesn't work out as badly as I had expected.

Your insight on how thieves work is rather convincing. And counting out an emptier drawer is tons easier and quicker.
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