What is a cash float?
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Definition
A cash float is a set amount of notes and coins placed in a till before trading starts so the business can give customers change. It is existing business cash, not sales income. At closing, the cash counted is checked against the float and recorded cash movements before money is set aside or banked.
The float is usually the same amount every day. At closing, work out the expected cash from the opening float, cash received, refunds and any other cash paid in or taken out, including earlier transfers to the bank or safe. Compare that amount with the cash counted and investigate any difference before setting aside the next day's float.
Setting up a float transfers existing business money, usually from the bank account to cash on hand. It is not a sale. Bankings and changes to the float are transfers too; record them separately from sales so moving cash does not count the same income twice.
A till float and petty cash both work from a fixed amount, but they do different jobs. The float makes change for customers, while petty cash pays for small business purchases. Keeping them in separate containers with separate records stops a gap in one from being covered by the other.
In Australia
business.gov.au says a business that accepts cash needs a way of tracking its sales, such as a cash register, and should bank its cash regularly instead of storing large amounts, to reduce the risk of theft. It also warns that cash is more exposed to theft than other payment methods, since it does not land in a bank account straight away, and that cash payments are more prone to errors.
The ATO's record-keeping tips include keeping accurate records of every cash and electronic transaction, and regularly checking cash and EFTPOS sales recorded inside the business against outside records, then entering the amounts in the main accounting system. It says that might be daily, weekly or monthly, depending on the business. Its record-keeping rules say the relevant information in records must not be changed, giving electronic sales suppression tools as an example.
Worked example
| Item | Amount (AUD) |
|---|---|
| Cash counted in the drawer | 1,486.50 |
| Less the float kept for the next day | 200.00 |
| Cash takings to bank | 1,286.50 |
| Cash sales recorded by the register | 1,290.00 |
| Till short by | 3.50 |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Banking the whole drawer, float included, and recording all of it as the day's sales.
- Taking cash out of the till without recording why it was removed.
- Ignoring small over or short amounts instead of noting each one, so a pattern goes unseen.
- Changing the float amount without recording the cash moved into or out of the till.
Related terms
Related service
Small business bookkeeping
Your books kept current, every month.
Sources
- Choose payment methods
business.gov.au, Australian Government. Current at 16 October 2026, released 18 December 2025. Checked 16 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Record-keeping tips
Australian Taxation Office. Current at 25 October 2022 (QC70730), released 25 October 2022. Checked 15 October 2026.
© Australian Taxation Office for the Commonwealth of Australia Licence: ATO website copyright notice (copy, adapt and distribute, without implying ATO endorsement).
- Overview of record-keeping rules for business
Australian Taxation Office. Current at 18 June 2026 (QC60718), released 18 June 2026. Checked 15 October 2026.
© Australian Taxation Office for the Commonwealth of Australia Licence: ATO website copyright notice (copy, adapt and distribute, without implying ATO endorsement).