Do I really need a cash register for my business?
If you're planning to set up as a retailer, you're probably wondering whether it's useful or compulsory to have a cash register.
What can such a tool do for you in terms of boosting your sales? What added value will it bring to your business? Is it compulsory by law to use a cash register? And if so, can you choose any system?
Before you take the plunge, here's a look at the situation in 2019.
Cash registers: compulsory or not?
Surprising as it may seem, there is no legal requirement for you, as a retailer, to install a cash register system.
What the law says
If you prefer to operate "the old-fashioned way", with a simple counterfoil book, an invoice pad or even an Excel spreadsheet, no one can stop you, at least... for the time being.
Your only obligations :
- systematically be able to provide your customer with an invoice recording the transaction if it exceeds €25 inc;
- below €25 inc. VAT, you only have to provide an invoice at the customer's request.
In both cases, the invoice must be issued in duplicate, one copy for the customer and the other for your records.
A small revolution appeared in 2018: the law now imposes new regulatory obligations on traders subject to VAT who are equipped with a cash register.
The new 2018 regulations
To alleviate the problems of tax fraud, on 1 January 2018, the French government passed an article of law requiring businesses liable to VAT to use a cash register (or cash register software) that is certified NF525, i.e. compliant with the new requirements in force.
This applies to all cash register software or systems used to record customer payments, whatever the method of payment (cash, cheque, credit card, bank transfer, direct debit, etc.).
Are you affected?
The NF525 standard
Why this standard and what impact will it have?
The creation of this new standard is a response to the dual desire of the French government to reduce VAT fraud and money laundering.
In the event of an audit by the tax authorities, every transaction and cash register operation will be easily traceable to ensure genuine transparency.
The NF525 standard meets the conditions of " inalterability, security, conservation and archiving of data with a view to inspection by the tax authorities".
The certified system :
- keeps a record of every single transaction, with no possibility of modifying it once it has been collected, so that it can be exported as an accounting document;
- is capable of flagging up attempts to delete transactions, or even virtual double accounting.
Our advice: if you want to buy a cash register, from now on you'll need to choose an NF525-certified model, such as the Genius software, or have your supplier issue you with a certificate.
If you fail to comply with this requirement, the penalties can be severe!
Why is it essential for a retailer to have a cash register?
If you only have a small number of customers, a simple invoicing system may do the trick, but if you have a peak in traffic, just imagine for a moment writing out a breakdown of all orders, including VAT and excluding VAT.tail of all orders, including VAT and excluding VAT, find yourself having to make multiple transactions in the event of separate payments, manage stocks, produce accounts... Laborious, isn't it?
So isn't it obvious why you need a cash register to avoid wasting an enormous amount of time, and to improve the quality of your customer service?
Saving time
Having a cash register system that's easy to use means you can manage a large number of transactions: ticket printing and collection are done in the blink of an eye. Customers who previously had to wait a long time to be served are delighted.
A cash register makes it much easier to :
- calculate VAT much more simply
- manage different payments more easily
- speed up collections,
- automatically issue detailed till receipts that comply with regulations,
- record transactions, calculations and products automatically,
- export information automatically.
Increased efficiency
In its connected form (mobile or not, on tablet or computer), the cash register has become a complete management tool for your business.
It offers features that make your life easier:
- Order management: preparation orders sent directly to the kitchen,
- Product management: you can record special prices for specific times and dates, etc,
- stock management: save on inventories, automatic restocking, etc,
- management of reservations, seating plans and restaurant tables,
- global management of your business via daily, weekly, monthly and annual statistics on your company's overall activity,
- an intuitive interface that can be customised for each user (employee, manager, etc.).
You can, of course, add networked peripherals such as a till receipt printer, payment terminal, scales or counterfeit detector.
Peace of mind guaranteed
Whichever checkout system you use, it must be reliable and efficient, but it must also be able to provide impeccable accounting records. You must be able to justify your receipts to the tax authorities.
All these requirements can be a source of anxiety, unless you opt for a modern cash register, such as one with NF525 certification.
This type of cash register is a welcome relief, because its functions allow you to:
- Eliminate accounting errors,
- provide impeccable accounting and tax information,
- Secure and archive all your data,
- automatic sales reports,
- automatic export of accounts to your chartered accountant.
As a retailer, what are the risks of using a non-compliant cash register?
What happens if my cash register is not compliant?
If your cash register meets the requirements of the NF525 standard, you have nothing to worry about in the event of an inspection.
On the other hand, if you cannot prove that your cash register system complies with the standard, you will have 60 days from the date of the official report to bring your system into line, or face a fine of €7,500 per register.
What's more, additional tax penalties may be levied for any revenue that the fraudulent software has made it possible to conceal following the inspection.
The end of "permissive" tills
Before the 2018 law, more than €17 billion was not being paid into the State's coffers due to the use of fraudulent cash registers, also known as "permissive" cash registers.
Equipped with software that can be used to erase or modify part of the official accounting regulations, these cash registers were used to avoid paying tax and VAT.
With compulsory certification and the associated penalties, they are tending to disappear. Non-permissive" cash registers keep a record of all transactions without any possibility of subsequent alteration, which makes the task of fraudsters more difficult.
How can I be sure that my cash register is compliant?
Since you can't check a cash register's compliance at a glance, you'll have to provide documents to prove that you're in order.
- You're getting a new cash register:
A "certified software" certificate must be provided to you by the publisher, assuring you of its commitment to complying with the requirements of the 2018 law. This is your guarantee to the tax authorities.
- If you already have a cash register:
Ask your current supplier whether its cash register (or cash register software) is indeed NF525 certified (a blue and white NF badge affixed to the cash register proves this guarantee) and where possible, ask for it to be updated.
Once again, the supplier must provide you with written proof that the equipment is in order, so that you are covered in the event of an inspection.
If certification is not possible, you will have to buy new software or a new certified cash register system.
Conclusion
Although the new regulations can be frightening, there is so much to be gained by equipping yourself with a computerised cash register system that it would be a shame to go without one:
- The interfaces have become highly ergonomic and much more intuitive to use than before.
- You can now equip yourself with much more economical online solutions.
Cash register software publishers have redoubled their efforts to make your life easier, so what are you waiting for?
Article translated from French