Small cash variances are normal in any restaurant. A dollar or two off at the end of a shift happens when you’re making change hundreds of times a day. The goal isn’t zero variance every single shift. It’s understanding your patterns and catching problems early.

Set up a cash over/short account in your chart of accounts. When the drawer is short, record the difference as an expense. When it’s over, record it as income. This keeps your books accurate while tracking variances separately from your regular operating expenses. At month end, you should see a small net number that fluctuates slightly. Large or consistently negative balances tell you something is wrong.

Count every drawer at every shift change. The opening count, the mid-shift handoff if applicable, and the closing count should all match your POS reports within an acceptable range. Most restaurants allow a variance of a few dollars before flagging it. Document who counted, what time, and what the variance was. This creates accountability and a paper trail if you need to investigate.

Common causes of shortages include honest mistakes like giving wrong change, register errors, voided transactions handled incorrectly, and employee theft. Before assuming theft, look at your processes. Are employees properly trained on the register? Are voids and comps documented and approved by a manager? Are cash drops happening regularly so drawers don’t get overloaded?

When shortages become a pattern, track which shifts and which employees are involved. If one person’s drawer is consistently short while others balance, that’s a conversation you need to have. If all drawers are short, it’s likely a training or process issue rather than theft.

Limit who handles cash. The fewer hands touching the drawer, the easier it is to identify problems. Separate the person counting the drawer from the person making the deposit when possible. Two sets of eyes catch errors and deter theft.

If you’re seeing significant unexplained shortages, get help. A San Diego bookkeeper familiar with restaurant operations can help you set up proper tracking, review your procedures, and identify where money is leaking. Sometimes the issue is sloppy recordkeeping rather than actual missing cash, and cleaning up your books reveals the problem was never as bad as it seemed.