Cash register requirements: what you need to have in place for cash sales

Does your business accept cash or card payments over the counter? Then the bookkeeping regulations set clear requirements for how cash sales must be recorded and reconciled every single day. Here we go through what a compliant cash register log and a proper daily cash settlement actually involve.

Daily recording of cash sales

As a general rule, cash sales must be recorded in the cash register system on an ongoing basis – that is, at the moment the sale takes place. The customer must receive a sales receipt for every purchase, unless payment is made through an integrated payment solution and the customer declines the receipt. Unless the business uses a fixed cash float, all cash receipts and payments must also be recorded in the accounting system daily.

Z-report and daily cash settlement

At the end of the day, the cash register system must print or save a summary of the day’s transactions – the so-called Z-report. The cash on hand must then be counted physically, and the result reconciled against both the Z-report and the report from the payment terminal. These requirements follow from the Norwegian Bookkeeping Regulations (bokføringsforskriften) §5-3-2 and §5-3-14.

What happens if the routines aren’t followed?

Missing or inadequate cash documentation is one of the most common findings in bookkeeping audits. Without daily reconciliation, the Norwegian Tax Administration can set aside the accounts and determine turnover by discretionary assessment, which often results in a higher tax base than the actual sales would indicate. Good routines for cash settlement are therefore not just a formal requirement – they are also the best documentation you have if your accounts are audited.

Who do the requirements apply to?

The requirements apply to all businesses that sell goods or services for cash or card payment over the counter – regardless of industry. This includes shops, restaurants, hairdressers, workshops and everyone else who receives payment directly from the customer at the point of sale. If you have multiple registers or several departments, each individual register must have its own daily settlement.

Digital cash register solutions make the job easier

A cash register system integrated with your accounting system reduces the risk of input errors and makes reconciliation much faster, since the Z-report and terminal report can be retrieved and booked automatically. Whichever accounting system you use – Tripletex, Conta, PowerOffice Go, Fiken or eAccounting – the cash settlement should be a fixed, documented part of the daily routine, not something done afterwards when reconciling the accounts for the month.

Sources: Kontantsalg og kassasystem (Altinn)