Importance Of Daily Sales Closing And Settlement Reconciliations For Accurate Accounting

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The day has passed and it is time to close your business for the day.
It is important for you to have a discipline to do a 5-minute routine before calling it a day.

This routine is called “Sales Closing and Settlement Reconciliation”.

It simply means you must know what menu items and how much of them were sold during the day – this is Sales Closing. For example, you have made $1000 of sales today, and substantially made up of Product A $800 + Product B $200.

This information is giving you critical information on success of your marketing so far, the popular fast runner items, and potentially slow moving ones.

This will help regulate your marketing campaign and re-stocking efforts.

By Sales Settlement, we simply mean the modes of settlement by the customers. For example, the $1000 sales were settled in Cash $500 + Credit Card $300 + E Wallet $200.

Hence, Sales Closing $1000 = Sales Settlement $1000.

For the $500 Cash, you must have the discipline to deposit the cash into your company bank account the next day.

It is only with this daily discipline would your accounting for Sales and Receipts be accurate cumulative towards the whole month, and the whole year!

Imagine if only your accountant discovered at end of the month that Receipts < Sales, the amount of working of going back to trace the cash would be a nightmare.

Cash pilferage normally occurs in businesses where business owners do not practice Sales Closing and Settlement on daily basis.

Get it?

If you need help, feel free to contact us at :

(M) +65 90880669

(E) [email protected]

Written by Kelvin Loh