Accounting Articles > Grocery and Convenience Stores:

Controlling cash in the grocery and convenience store industry

One of the biggest concerns that we have in doing accounting for the Grocery and Convenience Store Industry is controlling cash.

First, we want to make sure that you don't have an employee with sticky fingers. Second, if your cash is off, then your sales could be understated. If your sales are understated, this opens up the possibility for problems with the Illinois Department of Revenue on a sales tax audit, or a charge of tax evasion from the Internal Revenue Service.

Balancing your cash register is extremely important. Starting the day with a specific amount of cash is necessary. Closing out the day after running what is commonly referred to as the z report, and tieing that total sales figure to cash, credit card, and other receipts is crucial. If you are off by five dollars, then you need to track it down. Continued shortages might point to a problem employee where we would need to run a sting.

Keeping copies of all of the nightly closing reports along with the reconciliations is an important basis for the monthly sales tax return in addition to the annual income tax returns. I realize that this is an enormous amount of paper, but without it, there simply is no other way to actually prove what you sales were for a given period. Without that proof, we could have some real difficulties with the taxation agencies.

As highly recommended CPA's and EA's that work in the Grocery and Convenience Store Industries of Chicago, we can help put controls into place and do the training necessary to alleviate these issues. Problems in this area can become epidemic. If they remain unchecked, they can ruin a business. Don't try to handle this yourself. Call or e-mail Accounting Solutions today. Accounting for grocery and convenience stores in the Chicagoland area is one of our specialties. Call one of our industry specialists today at (773) 267-7500.