Cash management refers to the proper and complete recording of all income and expenditure processed through a till. This also includes the proper issuing of receipts and the retention of receipts and records for a specified period.

In Germany, keeping accounts is compulsory for business owners who generate income from the sale of goods or services. This applies regardless of whether the business is large or small, or whether it is a commercial enterprise or a self-employed activity.

The obligation to keep cash accounts applies from the moment a business commences trading and is independent of the level of turnover. There is no set turnover threshold above which cash accounting becomes mandatory. However, there is an exception for businesses with a turnover of less than 17,500 euros in a calendar year, which are exempt from the obligation to keep cash accounts.

It is important to note that businesses which fail to comply with their cash accounting obligations may face penalties. These penalties may include fines, penalties or even criminal prosecution. It is therefore important that businesses take their cash accounting seriously and ensure they fulfil their obligations in order to avoid problems.

A cash register inspection is an audit of the proper management of cash registers carried out by a tax authority or a tax inspector. This inspection can be carried out either on-site or at the business premises and serves to ensure that businesses fulfil their obligations regarding the management of cash registers.

During a cash register audit, the company’s financial records are examined to ensure that they are complete, accurate and up to date. This also includes the issuing and retention of receipts and records. The tax authority or tax inspector will also check the till itself to ensure that it is functioning properly and that all income and expenditure are recorded correctly.

When a cash register audit is due, it is important for the business to prepare and make available its financial records and supporting documents in the correct manner. It is also important for the business to provide all relevant information and documentation required for the audit.

It is also important that businesses follow the instructions and requirements of the tax authorities or the tax inspector and respond promptly and effectively to any questions or concerns that arise during the cash register inspection.

It is important to note that a cash register inspection is not the same as a tax audit, and that there may be other reasons why a tax authority carries out a cash register inspection. However, if a business fulfils its obligations regarding cash management and keeps its financial records in order and up to date, there should be no problems during a cash register inspection.

To avoid problems during a cash register audit, comprehensive documentation is therefore the best tool, and typical errors such as incorrect entries or inadequate record-keeping can be avoided by optimising processes.

Proper documentation of procedures is mandatory and should be undertaken in all cases. There are many pitfalls, particularly when it comes to cash management, which can be avoided by adopting a conscientious approach.

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