Cash Drawer Opening Balance

Published: 2026-05-30 · Updated: 2026-06-21 (12 days ago)· IZI Team

The opening balance is the cash you physically place in the drawer before a shift begins so you can make change for customers. IZI records this amount when you open the shift and uses it as the baseline for calculating expected cash at close. Getting it right is the single prerequisite for a meaningful Z-report.

How to set the opening balance

When opening a shift (Shifts → Open shift), IZI asks for the opening balance. Count the cash in the drawer first, then enter the exact amount.

Do not skip or estimate. An incorrect opening balance makes every discrepancy calculation for that shift wrong.

For a full walkthrough of the opening flow, see Open shift.

How much cash to keep in the drawer

Keep the minimum that lets you operate comfortably. A practical formula:

Check the average change given per cash transaction — pull this from the last 5–7 X-reports
Multiply by 10–15 cash transactions
Round up to a convenient denomination

Example: if average change per transaction is 50 (local currency units) and you handle 15 cash transactions per shift, you need 750 → keep 800–1 000 as your float.

Everything above that target belongs in the safe. Never keep more in the drawer than you are prepared to lose to theft or a counting error.

Optimal denomination mix

Fill the float with as many small bills and coins as possible:

Coins and small denominations — for exact-change situations
Mid-range bills — for making change from larger payments

Large bills have no place in the float: they are awkward for giving change and increase exposure in a theft scenario.

Verifying the drawer at three points in the shift

At opening: count the physical cash, then enter the amount in IZI. Always count first, enter second — never the reverse.

Mid-shift (as needed): if small coins are depleting quickly, check whether you have enough left to cover the remaining shift. If not, bring in change from the safe and record the transfer.

At closing: the physical cash remaining should equal the calculated closing balance from the X-report. If they differ, follow the reconciliation steps in Shift discrepancy.

How IZI calculates the expected closing balance

At close, IZI uses this formula:

Opening balance
+ Cash received during the shift
− Cash paid out (refunds, recorded disbursements)
− Cash collections (safe drops during the shift)
= Expected closing cash balance

If the physical count at close equals this number — zero discrepancy. Any difference is flagged in the Z-report and requires a documented explanation.

What to do when the count doesn’t match

If the physical drawer count at opening differs from what the previous Z-report shows as closing cash:

Do not open the shift yet
Recount — counting errors are the most common cause
If still mismatched, notify the manager
The manager investigates and approves the balance to use
Document the discrepancy reason in the shift notes before opening

Opening a shift with an unexplained mismatch creates a cascading problem: that error flows through every discrepancy calculation in the new shift’s Z-report.

Frequently asked questions

Where does the opening balance come from?

From the cash remaining in the drawer after the previous shift closed. The previous Z-report shows the closing cash amount — this becomes the opening balance for the next shift.

Is the opening balance counted as shift revenue?

No. The opening balance is a technical float — you put it in at the start and take it out at the end. It is not counted as revenue. IZI subtracts it from the closing drawer total when calculating actual cash revenue for the shift.

How much cash should I keep in the drawer?

Keep the minimum needed to make change. A practical target: look at average change given per cash transaction over the last 5–7 shifts, multiply by 10–15 transactions, and round up to a convenient amount. The rest belongs in the safe.

What if the count doesn't match what the previous Z-report says?

Flag the discrepancy to the manager before opening the shift. Do not open with an unexplained mismatch — it makes the new shift's Z-report unreliable. Document the difference and open only after the manager acknowledges it.

Can I change the opening balance after the shift has started?

No. The opening balance is locked when the shift opens. If you entered the wrong amount, the manager or Owner can correct it in Settings → Shifts before the shift closes.

What if I run short on change mid-shift?

You can bring change in from the safe — record it as a service receipt if your setup supports that, or log it in the shift notes. Never take money from the drawer without a record: it creates an unexplained discrepancy in the Z-report.