How to Record Cash and Card Sales in Your Books
By Cedar & Ledger
If you sell at a market, a shop counter or out of a truck, you probably take both cash and cards. They land in different places: cash goes in a box, card money shows up in the bank a day or two later, with fees taken out. If you only log what hits the bank, your sales look smaller than they were and your cash sales can go missing entirely.
The business and numbers below are a made-up example to show the steps, not a real company. This is general information, not tax, legal or financial advice. For your situation, check with a tax professional.
Quick checklist
- ☐ Count your starting cash (the float) before you open
- ☐ Count the cash at close and subtract the float
- ☐ Get the day's card total from your card reader or app
- ☐ Record each kind of sale at its full amount
- ☐ Record card fees as a separate expense
- ☐ Log refunds as their own entries
- ☐ Deposit cash and match deposits to your sales
- ☐ Keep the daily summaries with your records
The steps below walk through each one.
Step 1: Count your starting cash
The cash you put in the box to make change is called a float. It isn't a sale, so write it down before you open.
Example (made up): Maple Street Candles starts a Saturday market with a $50 float.
Step 2: Count the cash at close
At the end of the day, count everything in the box and subtract the float. What's left is your cash sales.
Example (made up): $290 in the box at close − $50 float = $240 cash sales. Put the $50 float aside for next time.
Step 3: Get the card total
Your card reader or payment app has a daily sales report. Use the gross amount (what customers paid), not the payout that lands in your bank.
Example (made up): card sales for the day were $410 gross. With a made-up 3% fee, the fee is $410 × 3% = $12.30, so the payout is $410 − $12.30 = $397.70. Your real processor's fees will be different; use the number on its report.
Step 4: Record each kind of sale at its full amount
Log one row per kind of sale per day (or one row per sale, if you prefer), with the payment method:
| Date | Type | Category | Amount | Payment method |
|---|---|---|---|---|
| Sat | Income | Product sales | $240.00 | Cash |
| Sat | Income | Product sales | $410.00 | Card |
Total sales for the day: $240 + $410 = $650.
Step 5: Record card fees as a separate expense
Log the fee as an expense instead of recording only the net payout. That way your income shows what customers really paid and the fees show up as a cost you can see and compare.
| Date | Type | Category | Amount | Payment method |
|---|---|---|---|---|
| Sat | Expense | Bank & payment fees | $12.30 | Card |
Quick check: $650 sales − $12.30 fees = $637.70 that should end up in the bank ($397.70 card payout + $240 cash deposit).
Step 6: Log refunds as their own entries
If a customer returns something, record the refund as its own row on the day it happened, with the same payment method it went back on. Don't edit the original sale. You'll be able to see how much you refund over a month.
Step 7: Deposit cash and match deposits to sales
Deposit cash sales regularly rather than spending out of the cash box, so the bank shows a clear trail. Once a month, match each deposit and card payout to the sales you logged. How to reconcile a business bank account walks through that check. If you collect sales tax, that money isn't yours to keep; track it separately and follow your state's rules.
Step 8: Keep the daily summaries
Save the card reader's daily report and a note of your cash count (date, float, closing count, cash sales). How to organize business receipts has a simple folder system that works for these too. The IRS explains what records to keep and for how long on its recordkeeping page. Card processors and payment apps may also send you a Form 1099-K showing gross payments; the IRS explains it on its Form 1099-K page. Logging gross card sales (Step 3) makes those numbers easier to match.
Common snags
- Counting the float as a sale. Subtract it every time.
- Logging only the bank payout. Your sales look smaller and the fees disappear.
- Paying for things straight out of the cash box. Deposit first, or log each purchase as an expense with a receipt.
- Mixing up days. A card payout often arrives a day or two after the sale; log the sale on the day it happened.
A spreadsheet to log it in
Any ledger works. If you'd like one that adds things up, the Small Business Bookkeeping Tracker ($12, Excel and Google Sheets) has a Transactions tab with room for 1,500 entries and a payment method dropdown (Cash, Card, Bank transfer, Check, PayPal, Stripe, Other), a "Bank & payment fees" expense category you can rename in Setup, a profit and loss tab, a dashboard and a summary of expenses you mark deductible (details). It doesn't connect to your bank or card reader; you type the daily totals in yourself.
Honest note: I make these templates and sell them under Cedar & Ledger, so I'd earn from a purchase. General information only, not tax, legal or financial advice.
Try the free sales tax calculator →
Related template: read about the small business bookkeeping template
See all Cedar & Ledger templates
Frequently asked questions
What does this guide cover?
Count the float, log cash and gross card sales separately, record card fees as an expense, log refunds on their own and match deposits to sales.
What are the steps?
1) Count your starting cash; 2) Count the cash at close; 3) Get the card total; 4) Record each kind of sale at its full amount; 5) Record card fees as a separate expense; 6) Log refunds as their own entries; 7) Deposit cash and match deposits to sales; 8) Keep the daily summaries.
Do I need a template to do this?
No. A notebook or a sheet you build yourself works fine. Cedar & Ledger also sells spreadsheet templates (I'd earn from a purchase); see the template box at the top of this page.
Is this financial advice?
No. It's general information with example numbers only, not financial, tax, legal or medical advice. Use your own numbers and check anything important with a qualified professional or the official source.