Cash drawer over/short: causes and how to track it
A cash drawer is over or short when the cash counted at close does not equal the starting float plus cash sales minus cash paid out. Track it by writing that one subtraction down for every drawer and every shift, with the cashier's name, so a pattern shows up within weeks.
The over/short formula
Expected cash = starting float + cash sales − cash paid-outs. Over/short = counted cash − expected cash. A positive result means the drawer is over; a negative result means it is short.
Example: a drawer opens with a $150.00 float. The register reports $460.00 in cash sales and one $12.00 paid-out for ice, with a slip in the drawer. Expected cash = 150.00 + 460.00 − 12.00 = $598.00. The closing count is $595.25, so the drawer is 595.25 − 598.00 = $2.75 short.
The free cash drawer over/short calculator runs this subtraction from a denomination-by-denomination count.
What causes an over or a short
| Cause | What it looks like | First check |
|---|---|---|
| Wrong change given | Small overs or shorts of any amount | Recount the drawer; compare with the register journal for large-bill tenders |
| Tender keyed wrong (cash rung as card, or card as cash) | Over or short by exactly one sale's amount | Match the card processor batch to the register's card total |
| Paid-out without a slip | Short by a round amount ($10, $20) | Look for receipts in the drawer, bag or office |
| Float miscounted at open | The same short or over at every count that day | Two-person float count at open |
| Cash rounding without pennies | Variances of a few cents | Ring rounding the same way on every sale |
| Cash taken from the drawer | Shorts that repeat with one cashier or one shift | Blind counts and one cashier per drawer |
| Sale not rung, cash kept | The drawer balances; the loss shows up in stock, not cash | Compare stock counts with units sold |
The last row matters: a drawer that balances every night proves only that the cash matches what was rung. Cash from a sale that was never rung never enters the expected figure.
Pennies and rounding
The US Treasury's Penny Production Cessation FAQ (December 23, 2025) says businesses may round, when penny change is not available, the final amount of a cash transaction to the nearest five-cent increment, asks that it be done in a fair, consistent and transparent manner, calls this non-binding guidance, and notes that states may approach it differently. Pennies remain legal tender, and non-cash transactions are not affected.
Rounding to the nearest five cents moves any one transaction by at most two cents ($4.98 becomes $5.00; $4.97 becomes $4.95). Example: if your register does not record the rounding, 40 rounded cash sales can move the drawer by up to 40 × $0.02 = $0.80 in either direction.
Over/short log template
One row per drawer per shift. The first row is the example above.
| Date | Store | Register | Cashier | Float | Cash sales | Paid-outs | Expected | Counted | Over/short | Counted by | Note |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 11/12 | Main St | 1 | J. Lee | 150.00 | 460.00 | 12.00 | 598.00 | 595.25 | −2.75 | M. Ortiz | Recounted, same result |
Rules that make the log useful
- One cashier per drawer per shift where possible, so each variance has one name next to it.
- Record overs as well as shorts. An over is the same counting or change error in the other direction.
- Pick a dollar threshold, write it in your cash policy (for example $5.00 per drawer), and require a note for every variance above it.
- Review the log weekly by cashier and by register, not only as a store total. See tracking cash variance across multiple stores for why net totals hide errors.
- File count sheets with the register tapes. The IRS lists cash register tapes and deposit information among the records that support gross receipts, and says to keep records for 3 years in the basic case and employment tax records for at least 4 years.
Can you make the cashier pay the shortage?
Under federal law the room is narrow. The US Department of Labor's Fact Sheet #16 (revised July 2009) lists, as an example of an illegal practice, a minimum wage cashier required to reimburse the employer for a cash drawer shortage. A deduction may not bring pay below the $7.25 federal minimum wage or cut into required overtime, and the employer may not get around this by having the employee repay in cash. State rules on wage deductions can be stricter.
This is general information, not legal advice. Check your state labor department for current rules.
How big the problem is
The National Retail Federation's 2023 National Retail Security Survey, based on 177 retail brands, put average shrink at 1.6% of sales in fiscal 2022, up from 1.4% the year before, and found that internal and external theft together accounted for 65% of shrink. A drawer over/short log covers only the cash part; stock counts cover the rest.
If you run more than one location, Assistlify records cash-drawer counts and stock counts per location.
Questions
How do you calculate cash over and short?
Expected cash equals starting float plus cash sales minus paid-outs; over/short equals counted cash minus expected cash. With a $150 float, $460 cash sales, $12 paid out and $595.25 counted, the drawer is $2.75 short.
What is an acceptable cash drawer variance?
We found no federal or industry standard figure in the sources checked. Set your own threshold in writing, such as $5.00 per drawer, and require a note for every variance above it.
Is a cash drawer being over a problem?
Yes. An over comes from the same errors as a short, such as wrong change or a tender keyed wrong, and it means a customer may have been shortchanged.
Can I deduct a cash shortage from an employee's paycheck?
Federal DOL Fact Sheet #16 says a deduction may not bring pay below the $7.25 federal minimum wage or cut into overtime, and gives a minimum wage cashier repaying a shortage as an illegal example. State law can be stricter.
Sources
- US DOL Wage and Hour Division, Fact Sheet #16: Deductions From Wages (revised July 2009) (checked 2026-11-12)
- NRF press release: Shrink accounted for over $112 billion in industry losses in 2022 (National Retail Security Survey 2023) (checked 2026-11-12)
- US Treasury: Penny Production Cessation FAQs (December 23, 2025) (checked 2026-11-12)
- IRS: What kind of records should I keep (checked 2026-11-12)
- IRS: How long should I keep records? (checked 2026-11-12)