What are the Meanings of Open Till? Part 3

Checkout check with the cash register open

The requirements for cash register review were re-regulated by Section 146b AO or the “Law on Protection against Tampering with Basic Digital Records” from December 2016. One of the aims of the new regulations is to prevent fraud. With regard to the open checkout, a checkout is permitted if it is used to check whether the relevant records have been carried out properly. Of course, not everyone is allowed to carry out the aforementioned checkout. Rather, the person concerned must be authorized. Classic example: the tax auditor.

You do not have to register the checkout review of an open checkout. Normally, this may only take place on the respective business property of the person to be examined. If, on the other hand, there is a risk of darkening, tests may also be carried out in the person in charge. However, a check-out does not include a complete search of the business premises. Because it relates – as the name suggests – only to the checkout processes. However, if in the course of the checkout there are indications that the principles of proper bookkeeping have not been adhered to, it is possible that a tax audit will also be scheduled in the coming weeks.

Common points of contention with cash register reports

Everyday life shows that characteristic points within a cash report are often criticized as part of a tax audit. It is important to prepare well or to be able to explain the relevant circumstances logically (and of course truthfully). The most frequent complaints are an excessively high (arithmetical) cash balance, missing entries and counts.

Of course, a forgotten cash report usually does not lead to an immediate estimate. Nevertheless, you should also avoid these classic mistakes in order to prove to the auditor that you work in accordance with the GoBD down to the last detail in your company.

Sample cash report for open cash registers and example

When creating a checkout report in connection with the open checkout, a company should always use a fixed pattern. All data is then queried in the corresponding documents. The best way to do this is to simply use a free cash report template for Excel to ensure consistency and save time-1

Important points here are:

  • Date and time of the report
  • consecutive number
  • Cash on hand at close of business
  • Payments incurred in connection with the purchase of goods and ancillary costs
  • Business expenses
  • Private withdrawals ( own receipts must be created for these )
  • other expenses

Now you add the sum of the expenses with the respective cash on hand. You then subtract the previous day’s cash balance from the result. This then results in what is known as the “cash desk entrance”. Finally, subtract the private deposits and other income from the day’s income. You note the corresponding amount as “daily income”. There should still be some space for additional comments in the financial report. Once you have completed the complete report, your signature or that of the employee concerned must not be missing.

You can find numerous cash book templates for download on the Internet that can help you keep a proper cash book.

The BMF regulates the individual recording

The Federal Ministry of Finance (BMF for short) is responsible for the amendments to the application decree for individual recording. Paragraph 146 of the AO mainly defines the legal regulations on the individual recording obligation and requirements in connection with open checkouts. In addition, certain exceptions are also fixed here.

Cash register software

Running an open till is a somewhat more time-consuming, but with a little practice, easy-to-understand form of till management. However, it becomes risky if the business owner does not sufficiently deal with the legal requirements and does not act in accordance with the GoBD. In order to avoid this source of error, it can be worthwhile to rely on the use of suitable cash book software. This ensures that all current (thanks to updates) legal requirements are complied with. Many programs also offer the option of integrated archiving, which in turn also plays a major role in tax audits.

Open Till 3

Conclusion – leaflet on cash management when the till is open

Even if exceptions naturally apply in some areas with regard to the cash management of the open till, it is helpful to deal with the most important points around the open till, even in the (often hectic) everyday life.

  • If you do not use an electronic recording system, you usually have to document every business transaction. (This not only includes the documentation of the respective service, but also the name of the business partner, among other things).
  • In addition to the relevant sales, you must also note the payment method . (In the cash book, you can only post sales that have been made in cash.)
  • Nobody is required to run a cash register.
  • The income and expenses must be traceable with the help of a cash report.
  • The cash balance must be determined backwards.
  • If your company uses several registers, you have to create a register report for each register. Summaries are not possible here.
  • The information must always be accurate to the cent. Rounding up or down is not permitted.
  • If available, counting logs must always be kept.
  • The software used must comply with the “principle of immutability”. Excel and Word are not suitable for this.