A shop can look busy and still lose money. The leaks are small and daily: change given wrongly, goods taken without payment, M-Pesa received but not recorded, stock sold at the wrong price. A short routine at closing time finds these leaks while they are still small. It also produces the records that KRA and your bank expect. This guide sets out a routine that takes about fifteen minutes.
Why a daily cash-up matters
Tax follows sales. If you do not record what you sell each day, you cannot file an accurate turnover tax or VAT return, and you cannot prove your costs. A daily record also shows trends, such as the slowest day of the week or the product that sells fastest. Without it, you manage by guess.
The end-of-day routine
- Close the till and stop selling. Ask every cashier or staff member to hand over their takings.
- Count the cash and write down the notes and coins by denomination.
- Add the other payments: M-Pesa till or Paybill receipts, card slips and bank transfers. Use the M-Pesa statement for the day rather than memory. See keeping records with M-Pesa business.
- Compare with the sales record. Total sales from the till roll, the notebook or the POS should equal cash plus M-Pesa plus other payments plus sales on credit. Any difference is an over or short amount that you record and investigate.
- Record expenses paid from the till, with a receipt or note, so cash is accounted for. The petty cash book shows how.
- Bank the cash (leaving a float) and note the deposit.
- Sign the sheet with the person who counted. Two signatures discourage mistakes.
The daily cash-up sheet and the daily takings and expenses log are laid out for this routine, and the M-Pesa till reconciliation helps match digital payments.
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Stock control
Cash is half the story. Stock is the other half, and it is the asset thieves target.
- Count fast-moving items daily or weekly, especially high-value goods like airtime, phones and spirits.
- Do a full stocktake monthly or quarterly and compare it with what the records say should be on hand.
- Record deliveries against the supplier invoice and check quantities when they arrive.
- Record damages and returns with a reason, and get an authorisation signature for write-offs.
- Set reorder levels for popular items so you do not lose sales to stock-outs.
The full method is in inventory management basics, and the inventory and stock tracker calculates quantity on hand and value.
Spotting problems
| Sign | Possible cause |
|---|---|
| Cash is short every day by a small amount | Wrong change, theft or unrecorded expenses |
| M-Pesa received exceeds recorded sales | Sales not rung up, or personal money mixed in |
| Stock is lower than the records | Theft, spoilage or unrecorded sales |
| Stock is higher than the records | Deliveries not recorded |
| Gross margin falls | Wrong prices, discounts or theft |
Check your margins against your pricing: how to price your products and services.
Tax and records
If your annual sales are between the limits, turnover tax at 3% of gross sales is paid monthly on what you recorded, so the daily sheet becomes the basis for the return: see turnover tax for small businesses and the turnover tax calculator. Businesses with VAT must also issue eTIMS invoices: eTIMS and e-invoicing explained. Keep daily sheets for five years in line with how to keep business records for KRA.
Make it a habit
Choose the same time each day, give one person responsibility, review the sheets weekly and act on patterns. Separate the shop's money from yours: separating business and personal money.
Frequently asked questions
How much float should I leave in the till? Enough for change at opening, for example a few thousand shillings in small notes and coins. Bank the rest each day.
What do I do if the till is short? Record the shortage, check the day's receipts and ask staff. Repeated shortages need a closer look at who handled cash and when.
Do I need a POS system? Not at the start, but a POS or app makes sales, stock and eTIMS invoices easier as you grow.
How long should I keep daily sheets? At least five years, with your returns and bank statements.