An open cash register is a till which is run without technical assistance. Examples of this kind of till include:
- Drawers in a store counter
- Cash cassettes or
- Waiters’ wallets
Since there is no automatic data recording taking place when an open till is being used, it can be a lot of effort to keep track of your records – in comparison to recording them with an electronic checkout system.
In principle, all business transactions must be recorded individually, with a sufficient description containing:
- Transaction content
- Name, company, and business parters’ address
Your cash transactions should be recorded chronologically, numbered consecutively, and should include your states’ sales tax rate. Your bookkeeping is deemed correct if it can provide an expert third party (e.g., the IRS, small claims court etc.) with an overview of recorded transactions within a set period of time.
IRS Publication 463 provides for certain exemptions to the requirement for individual records – this includes expenses that total less than $75, or transportation expenses which may not issue a receipt. Nevertheless, you should still report these expenses in your record books, including these details:
- Date
- Amount
- Place
- Purpose of the expense
In any case, business owners who operate an open cash register are obliged to record the day’s transactions after the close of business. The finished records should correlate with the actual balance of the cash register at all times, in order to be considered competent bookkeeping.
The daily takings should be determined retrogressively in the cash report: