How to spot missing cash in a Kenyan small business

Missing cash is one of the most common problems in a small business. It may be caused by a genuine mistake, a forgotten expense, wrong change, a missed sale, or money being removed without a record.

The basic cash check

To spot missing cash, compare expected Cash with the physical Cash actually counted.

Example

• Opening Cash: KSh 3,000.
• Cash sales: KSh 9,500.
• Cash expenses: KSh 1,200.
• Cash transferred to Bank: KSh 4,000.
• Expected Cash: KSh 7,300.
• Actual counted Cash: KSh 6,800.

In this example, Cash is KSh 500 short. The owner should investigate before closing the day.

Possible reasons Cash is short

• A cash sale was not recorded.
• A cash expense was not recorded.
• Cash was taken out but no transfer was entered.
• A sale was recorded as M-PESA or Bank but was actually Cash.
• Opening Cash was entered too high.
• Closing Cash was counted incorrectly.
• Change was given wrongly.

What to check first

1. Recount the physical Cash.
2. Review Cash sales for the day.
3. Review Cash expenses for the day.
4. Check transfers from Cash to Bank or M-PESA.
5. Check whether any staff member used till money for a business cost.
6. Look for amounts that match the difference.
7. Add or correct the record if you find the cause.

When the difference remains unexplained

If the Cash difference remains unexplained after checking the day’s records, add a clear note and watch whether the same problem happens again. Repeated shortages are more serious than one isolated mistake.

How Bizwazi helps

Bizwazi helps Kenyan businesses spot missing Cash by recording sales, expenses and transfers by account. It helps show whether Cash should be higher or lower than the amount actually counted.