Cash Handling Tips for Small Business Owners

Getting Your Float Right

Your float is the cash you start the day with. Get it wrong and you're either apologising to customers because you can't break a tenner, or sitting on a pile of cash that makes you a target. Neither is good.

Here's what a decent float looks like for a market stall or small shop:

• 1p coins: 20 (20p) -- you will rarely need these, but having some avoids awkward moments
• 2p coins: 20 (40p)
• 5p coins: 20 (1.00)
• 10p coins: 20 (2.00)
• 20p coins: 20 (4.00)
• 50p coins: 20 (10.00)
• 1 pound coins: 20 (20.00)
• 2 pound coins: 10 (20.00)
• 5 pound notes: 6 (30.00)
• 10 pound notes: 4 (40.00)

That's roughly £127.60 in your float. Adjust it based on what you sell. If everything's priced in round pounds, you won't need many small coins. But if your prices end in .50 or .99, load up on 50p and £1 coins -- you'll burn through them fast.

Reconciling at End of Day

Most people dread this bit. Doesn't need to be a nightmare if you've got a system:

1. Count all cash in the till -- separate notes and coins, count each denomination, write down the total
2. Subtract your opening float -- this gives you the cash takings for the day
3. Compare with your till records -- if you used Mini Till, your dashboard shows total cash sales. This figure should match your counted cash takings
4. Check card totals separately -- your card reader (SumUp, Zettle, etc.) will show a daily total. Compare this with the card sales shown on Mini Till
5. Note any discrepancies -- small differences (under 2 pounds) are common and usually down to giving wrong change. Large differences need investigating

Common Cash Handling Mistakes

I've talked to dozens of market traders and small shop owners. These mistakes come up over and over:

• Not counting the float before starting -- if you do not know exactly what you started with, you cannot reconcile at the end. Count it. Write it down
• Making change from memory -- when it is busy, it is easy to hand back the wrong change. Say the amounts out loud: "That is 7.50, paying with 20, your change is 12.50"
• Mixing personal money with business cash -- never put your own money in the till or take cash out for personal use. It makes reconciliation impossible
• Not banking regularly -- do not let large amounts of cash accumulate. Bank your takings at least weekly, daily if possible
• Forgetting to record sales -- every sale needs to be recorded, even if it is busy. A missed sale is lost data and makes your accounts unreliable
• Accepting large notes early in the day -- a 50 pound note on your first sale will wipe out your change float. Politely ask for a smaller note, or put up a sign saying "No 50 pound notes please"

Security Tips

Cash makes you a target. Full stop. Here's how to not be an easy one:

• Never count cash in public -- reconcile somewhere private, not at your stall in front of passing strangers
• Skim the till regularly -- do not let your till build up with 500 pounds of notes. Periodically remove large notes and store them securely (a zipped pocket, a locked cash box, or your vehicle)
• Use a cash box, not an open dish -- notes sitting in an open container are an invitation
• Be aware of distraction theft -- one person engages you in conversation while another reaches for your cash. Keep the till behind your stall, not on the front table
• Vary your routine -- do not always pack up at the same time and walk to the car with the same bag. Predictable routines make you easier to target
• Bank immediately -- do not take the day's takings home and leave them overnight. Go straight to the bank or use a night safe

Record Keeping for HMRC

HMRC doesn't care that you're "just a market stall." You're a business. You need records. Here's the minimum:

• Recording every sale, ideally with a date, description, and amount
• Keeping a daily summary showing total cash sales and total card sales
• Retaining records for at least 5 years (6 years for VAT-registered businesses)
• Keeping receipts for any business expenses paid in cash

This is exactly why a tool like Mini Till is worth using -- you export your daily sales to CSV and you've got a digital record that's miles easier to store and search than a shoebox full of scribbled notes. Export at the end of every trading day. Save it to a cloud folder. Or email it to yourself. Takes thirty seconds and could save you hours of grief later.

When Cash Does Not Add Up

Happens to literally everyone. You count up and you're £3.40 short. Or £7.20 over. Don't panic. Small discrepancies are normal and usually caused by:

• Giving incorrect change (the most common cause)
• A customer paying with the wrong amount and neither of you noticing
• A sale that was not recorded on the till
• Coins falling and getting lost

If you're consistently short by big amounts, that's a different story and needs proper investigating. But a few quid either way on a busy day? Normal. Write down the discrepancy, note the date, and get on with your life. If a pattern shows up, you can look into it then.