Cash management & tax audit 2025: companies should avoid these mistakes

Even in 2025, cash-intensive companies will still face growing challenges: new legal requirements, the advance of digitalisation and increased tax audits by the tax authorities make professional cash management essential.

Our practical experience from current tax audits shows that, particularly in cash-intensive industries such as the gastronomy and hotel industries, accounting errors repeatedly occur that lead to complaints from the tax office. But what measures can companies take to minimise tax and legal risks? In this article, you will learn which critical points are particularly important.

Cash register malfunctions and TSD failures: What companies need to be aware of

The tax authorities place great value on proper cash management and the flawless functionality of technical security devices (TSD). A TSD failure can lead to missing POS data being evaluated as a serious deficiency. This can result in the tax authorities exercising their right to make estimates and, in the worst case, to back payments.

How to avoid problems:

• Regularly check the functionality of the cash register and TSD
• Secure and transparently document all cash register data
• Immediately respond to disruptions with detailed error logging.

It is especially important to be able to present complete documentation in the event of an unannounced cash register inspection by the tax office.

Cash balance capability and change holdings: how companies can avoid mistakes

The cash balance capability is a basic requirement for proper cash management. During a tax audit or cash audit, an auditor can demand a cash balance without prior notice. The cash holdings are compared with the entries in the cash book.

Please note: if the auditor finds differences, these can be considered a serious deficiency – with the consequence of additional tax assessments! Shortfalls can be extrapolated retroactively for the entire audit period.

Our recommendation: regularly review your processes. Make sure that

• you can take stock of your cash situation at any time,
• initial stocks and cash flows are known,
• information is continuously and transparently documented,
• initial stocks in waiters’ trouser pockets are recorded daily before the start of the shift.

Posting cash withdrawals: How to avoid costly mistakes

Cash withdrawals are a frequent focus of tax audits and cash desk reviews. Inadequate documentation of the following is particularly problematic:

• Cash withdrawals for short-term purchases
• Payments from EC cards for tips
• Private and business withdrawals

To avoid complaints, pay attention to the following points:

• Every cash withdrawal must be recorded in the cash register.
• EC card tips that are withdrawn in cash from the cash register.
• Clearly distinguish between private and business withdrawals.

Incorrect accounting in this area can not only lead to additional estimates, but also have criminal consequences.

Tips: What are the documentation requirements?

The documentation requirements for tips depend on the individual case:

• Tips to employees are tax-free according to § 3 No. 51 EStG.
• Tips to entrepreneurs are always taxable and subject to the documentation requirement.
• EC card tips are always subject to the documentation requirement.

Incorrect documentation can lead to additional tax demands during a tax audit.

Procedural documentation: Why it is crucial for tax audits

Tax offices are increasingly requesting procedural documentation with the tax audit order. In the case of an unannounced cash audit, it must be possible to present it immediately upon request.

Missing or incomplete procedural documentation can be considered a formal defect by the tax office. This can lead to the accounting being rejected – with significant tax consequences.

That is why internal processes should be regularly checked, optimised and documented accordingly. Depending on the size and complexity of the company, proper procedural documentation can be created with the help of a tax consultant or with easy-to-use and cost-effective do-it-yourself online solutions.

Conclusion

For cash-intensive companies such as those in the gastronomy and hotel industry, it is crucial to prepare for tax audits and cash desk reviews at an early stage. Adhering to accounting obligations and seamless cash management minimise tax risks and increase operational efficiency.

Careful preparation for tax audits can help companies avoid back payments and penalties. Consistently implementing the above measures will help you to stay calm when dealing with a tax audit.