How to Calculate Cash Register Shortages and Overages

To calculate a cash register shortage or overage, use this formula:

Cash variance = Actual cash − Expected cash.

Calculate expected cash by adding the opening float to recorded cash receipts, then subtracting documented cash expenses, cash refunds, and other recorded payouts. A negative result indicates a shortage; a positive result indicates an overage.

Example: If expected cash is 500 and the actual count is 480, the shortage is 20. Review invoices, returns, and payment methods before closing the shift. Cash Cloud helps organize sales and accounting. Try Cash Cloud for free.