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Bar Operations

Cash Handling Best Practices for Bars

BBy Brian ||6 min read
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Even in 2026, cash is still a significant part of bar revenue. And where there's cash, there's opportunity for shrinkage. Here's how to set up systems that protect you without treating every employee like a criminal.

The Basics: Every Shift, Every Time

1. Start With a Counted Bank

Every bartender starts with the same amount. They count it, you count it. Both sign off. No exceptions.

2. One Person Per Drawer

Shared drawers make it impossible to know who's responsible for variances. Each person owns their own till.

3. Blind Drop Counts

When counting out, staff doesn't know the expected amount. Prevents "making it work" by hiding overages.

4. Documented Variances

Every over/short gets recorded, no matter how small. Patterns emerge over time.

POS Features That Help

  • Cash drawer assignment - System tracks who's responsible for which drawer
  • No Sale tracking - Every time the drawer opens without a transaction, it's logged
  • Drop/payout tracking - Mid-shift cash outs are recorded with reason codes
  • Variance reporting - Automatic calculation of expected vs actual cash
  • Manager-only functions - No sales, voids, and refunds require authorization

Red Flags to Watch

  • - Consistent small shorts (under $5) - Often intentional, hard to prove
  • - High void rates on cash transactions
  • - Frequent "no sale" drawer opens
  • - Cash transactions deleted before closeout
  • - One employee always perfectly balanced (suspiciously so)

The Acceptable Variance Range

No drawer is ever perfect. Here's what's normal:

  • +/-$5 - Normal, don't worry about it
  • +/-$10-20 - Worth a conversation, not a write-up
  • +/-$20+ - Requires documentation and investigation
  • Pattern of shorts - More concerning than one bad night

The Goal: Systems, Not Suspicion

Good cash handling isn't about catching thieves-it's about removing temptation and making accountability automatic. When everyone follows the same process, honest people are protected and problems are easy to spot.

Want Help With Cash Controls?

I'll help you set up POS controls that protect your cash without creating friction.

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About Brian

Brian has spent over a decade helping bars, restaurants, and nightclubs optimize their operations through better technology. He's implemented SmartTab, SkyTab, Toast, and Aloha systems across hundreds of venues nationwide.

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