Anyone Have All Tips Placed in Drawer for end of night counting?

[brewlounge115]

We are a small bar that took over another business using toast. The employees have always placed all tips in the drawer. At the end of the night when the drawer is counted we will determine from the overage what the tip amount is. For example:

Starting Cash: 300.00
Cash Payments: 240.00
Expected Closeout Cash: 540.00
Actual Closeout Cash: 650.00

Overage: 110.00

The problem is that this is not really an overage and since cash sales are already closed out cash tips are not recorded at time of sale. How do you deal with your tipped employees?

We want to ensure our accounting is correct and being reported correctly, we just need to know the correct procedure for capturing cash tips and then when the drawer is closed ensuring the correct expected deposit amounts are in place.

Thanks.

[Rob · Accepted solution]

You could have your employees declare the tips.
Declare Cash Tips Overview

You can also edit the Declared tips, so even if the employees declare 0.00 you can edit it later
Edit Cash Declared Tips on Closed Shifts

I also attached this article that goes into how Toast suggests doing tip pools below
Pool Tips and Tipping Out

[GlennD]

We are completely a high volume bar situation all credit card tips more than cover the Federal requirements for reporting for each employee, which may end up going away in the future.  But we allow each shift t manage their cash tips as pooled based on when they start and when they leave.  For more info let me know and I am happy to explain in detail how we accomplish this.