# Cash Larceny: Theft After Cash Is Recorded

- Author: PreciseBankFlow (https://www.precisebankflow.com)
- Published: 2025-03-18
- Updated: 2025-03-18
- Category: Embezzlement and fraud schemes
- Canonical: https://www.precisebankflow.com/blog/cash-larceny

> How cash larceny differs from skimming, why it leaves a gap between recorded receipts and the bank deposit, and how reconciliations expose it.
Cash larceny is theft of cash after it has been recorded in the books, such as money taken from the till after a sale is rung up, or from the deposit bag once receipts are logged. Because the receipt is already on record, the theft leaves a gap between what the books say came in and what reached the bank.

## How is cash larceny different from skimming?

Cash larceny differs from skimming in timing. Skimming takes money before any record exists, so the books never show it. Cash larceny takes money after the receipt is recorded, so the books show more cash than the business actually holds. That recorded excess is the trail, and a reconciliation is what finds it.

The difference shapes what the thief must do next. A skimmer can simply walk away, because nothing in the ledger is missing. A person committing cash larceny has a problem: the register tape, the sales report or the receipts journal now says money arrived that never made it to the bank. They have to hide that gap or hope nobody compares the two.

Most theft through the payments side works differently again. Schemes such as [duplicate payment fraud](/blog/duplicate-payment-fraud) send money out of the bank through payments that look approved, while [vendor kickbacks](/blog/vendor-kickbacks) move money to an insider through an outside supplier. Cash larceny happens closer to the cash itself, usually at a till, a front desk or in the deposit run.

## The cash larceny gap between recorded receipts and the bank deposit

The cash larceny gap is the difference between total recorded receipts for a period and the deposits that reach the bank for that period. With no theft and no timing items, the two agree. When someone takes cash after recording, the deposit comes up short, and the person has to explain or conceal the shortfall.

Concealment usually takes one of a few forms:

- **Reversing entries.** A recorded sale is voided or refunded after the customer leaves, so the books drop to match the cash left.
- **Altered cash counts.** The deposit slip and the count sheet are changed to show a lower total than the register.
- **Delayed deposits.** Each day's shortfall is covered with the next day's cash, so the deposits always run a day or two behind.
- **Destroyed records.** The register tape or the original count sheet goes missing for the days that would show the gap.

Each concealment leaves its own sign. A rise in voids or refunds by one cashier, deposits that keep arriving later than they used to, and missing paperwork for particular days are all worth asking about.

## Reconciling daily receipts to deposits to expose cash larceny

Reconciling daily receipts to deposits exposes cash larceny by comparing, for each day, what the register or receipts journal recorded with what the bank statement shows was deposited. Done daily or weekly by someone who does not handle the cash, it shows a shortfall within days rather than months.

### Step list for a daily tie-out

1. **Take the recorded receipts for each day** from the register report or receipts journal, split into cash, checks and card.
2. **Take the deposits from the bank statement**, not from the deposit slip the cashier prepared.
3. **Match each day's cash and checks** to the deposit that should contain them.
4. **Note the date each deposit posted**, so delays show up.
5. **List voids and refunds** for each day with the employee who processed them.
6. **Record every difference** and who was on duty.

### An example five-day comparison

The table below is an example. The amounts are illustrative.

| Day | Recorded cash and checks | Deposited per bank | Posted | Voids | Difference |
| --- | --- | --- | --- | --- | --- |
| Monday | 1,840.00 | 1,840.00 | Tuesday | 0 | 0.00 |
| Tuesday | 2,115.00 | 2,115.00 | Wednesday | 1 | 0.00 |
| Wednesday | 1,960.00 | 1,760.00 | Thursday | 0 | 200.00 short |
| Thursday | 2,230.00 | 2,030.00 | Monday | 3 | 200.00 short |
| Friday | 2,480.00 | 2,480.00 | Monday | 4 | 0.00 |

Wednesday and Thursday are each short by the same round amount, and Thursday's deposit posted four days later. Friday balances, but the void count has climbed. A reviewer would pull the voids for Thursday and Friday and see who was working each shift.

Card sales usually settle through a processor, so they reach the bank as a separate payout and are tested against processor reports instead. Cash and checks are where cash larceny lives.

The person who signs off the bank reconciliation should see these comparisons, not just the final balances. The [bank reconciliation review checklist](/blog/bank-reconciliation-review-checklist) covers what that reviewer should ask for. When statements come in as PDFs, [PreciseBankFlow](/get-started) reads each deposit line and confirms the statement foots, so the deposit side of the comparison does not have to be typed in.

## When is a deposit shortfall not cash larceny?

A deposit shortfall is not always cash larceny. Weekend and holiday receipts often post on the next business day, bank cutoff times push late deposits into tomorrow, and a counting error can be found and corrected on the next deposit. The test is whether the difference clears quickly and has a written explanation.

Look for these innocent patterns before escalating:

- **Timing differences** that reverse within one or two business days.
- **Change fund adjustments**, where the till float was topped up or reduced.
- **Bank errors**, which the bank should correct after you ask.
- **Checks returned unpaid**, which reduce the deposit after it was made.

Escalate when shortfalls repeat, tend to be round amounts, cluster around one person's shifts or never reverse. Before you raise it with anyone, copy the register reports, count sheets and bank statements, because those are the records a careful thief would want to change.