How to investigate a Cash balance difference

A Cash balance difference usually comes from cash sales, cash expenses, transfers, or opening and closing balance mistakes.

Steps

1. Check the date or trading day with the difference.
2. Review all Cash sales for that day.
3. Review all Cash expenses for that day.
4. Review transfers from Cash to Bank or M-PESA.
5. Review transfers into Cash from Bank or M-PESA.
6. Check opening Cash balance.
7. Recount physical Cash if possible.
8. Correct any wrong record.

Useful clue

• If Cash is high and M-PESA is low by the same amount, a sale may have been entered under the wrong account.