Cash float is difference between the cash balances reported in your business accounting and the amount of cash you actually hold in your bank accounts. This discrepancy is usually the result of delays in payments or money transfers, as well as processing checks, which may take a bank several days to receive and record.

In general, cash float refers to the difference between the cash balance recorded in your accounting system's cash account and the amount of cash showing in your company's bank account balances, according to Lumen Learning.

Retail businesses, including restaurants, that frequently deal in cash often employ a cash float. This refers to the amount of cash placed in registers at the beginning of a shift or workday.

The term cash float can also be used to reference a small amount of cash kept on hand by a company to cover minor expenses and day-to-day operations.

The definition of a cash float in accounting is slightly different because it refers more to petty cash used for day-to-day expenses. This cash is kept on the premises or in a designated petty cash account for employees to use.