Article 1: How to Record Daily Sales and Expenses in a Small Shop
The short answer: every day, when you close the shop, fill in one simple page. It has a few numbers: the cash you had in the morning, the money you received, the money you spent, the money you took for yourself, and the cash you count at the end. This takes about 10 minutes. If the numbers do not match, the list below will help you find the reason.
Why you should write it every day
Most shop owners remember their sales well. But they forget small payments, like tea, transport, or a small repair. These small amounts become big over a month. The shop looks busy, but there is less cash than you expected.
Many years ago, I often visited a bakery owner. At the end of almost every week, the money in his cash box was less than it should be, even though many customers came every day. He could not understand why. I told him to write down every payment he took from the cash box on one simple page each day. After only four days, he found the reason. Small payments were taking nearly $150 every week: buying fruit in a hurry, tea and coffee for the workers, and small tips for the delivery boys. These amounts felt too small to count, so he never wrote them down. When he started writing them, he could see where his money went. Then he could decide which payments to keep and which to stop.
Your daily page
Copy this into a notebook. Use one page for each day.
- Date:
- Cash at the start of the day (the money in your cash box when you opened):
- Cash received from sales today:
- Sales on credit today (you gave the goods, but the customer will pay later):
- Money received today from old credit (customers who paid an old debt):
- Money paid for goods you bought today:
- Other money spent (wages, electricity, transport, repairs, tea):
- Money you took for yourself:
- Cash you should have = cash at the start + cash from sales + money from old credit − goods bought − other money spent − money you took for yourself
- Cash you counted (the money really in your cash box):
- Difference = cash you counted − cash you should have
Write sales on credit on their own line. You gave the goods, but you did not get the money yet. So do not count it as cash in your cash box.
An example
Here is one day in a small shop. Use your own money units.
- Cash at the start of the day: 2,000
- Cash from sales: 5,500
- Sales on credit: 1,500 (not in the cash box)
- Money from old credit: 300
- Goods bought: 2,800
- Electricity: 300
- Helper’s wage: 400
- Money the owner took: 500
Cash you should have: 2,000 + 5,500 + 300 − 2,800 − 300 − 400 − 500 = 3,800
You count your cash box and find 3,750. The difference is 50 less than it should be.
If the numbers do not match, check these first
- A small payment you forgot to write: tea, transport, a small repair, a gift to someone.
- Money from old credit not written. A customer paid an old debt, and you put the money in the cash box without writing it.
- Credit written as cash. You wrote a sale as paid, but the customer did not pay yet.
- Money you took for yourself and did not write, even small amounts for lunch or for home.
- Wrong change given to a customer, especially when the shop is very busy.
- A counting mistake. Count the money two times.
If you find nothing, still write the difference. One small difference is normal. But the same difference every day means there is a problem. Your daily page will show it to you.
Common mistakes
- Counting sales on credit as cash.
- Mixing the shop’s money with your home money.
- Writing only once a week, when you have forgotten many things.
What comes next
Your daily page is the first step. In Article 2, we explain what counts as a shop expense and how to record it. After that, in Article 3, we use all your numbers to find your real profit.
This article is for general learning. It is not personal financial advice.
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