Reconciliation is essential to ensure that the actual cash in the till matches the recorded transactions in the point-of-sale (POS) system. It helps:
- Identify discrepancies that may indicate errors, theft, or fraud.
- Maintain accurate financial records for reporting and audits.
- Ensure the business is operating efficiently and transparently.
- Build trust among employees by enforcing a standard cash handling policy.
Regular reconciliation reduces risks and gives managers peace of mind.