What types of POS systems are available
In addition to manual cash registers (open cash registers), there are three basic types of POS systems:
Electronic cash register
PC-based POS system
POS system
As of 2023, The type of system used by a business for cash register operations is not prescribed by law. Tradespeople and small businesses that typically handle sales or services for cash payment through open cash registers, such as sales stands at weekly markets or festivals, or kiosk operators, are not yet required to use an electronic cash register.
However all ‘Cash in hand’ payments for work are like any other income. They must be declared to HMRC in your annual Self Assessment tax return. This also obliges operators of open cash registers to fully, comprehensively, and timely record all cash transactions. If sales of goods are made for cash payment to a large number of unknown and unidentifiable individuals, individual sales may be waived.
This is why a POS system is vital to your business, as you are able to store a record of every cash order from all your delivery platforms on the same database.
The open cash register is the most complex cash register system. In principle, the use of an electronic recording system is recommended, as it automatically records all cash register transactions individually and in detail, while at the same time ensuring the legally required long-term storage (retention) of the recorded individual data.
What legal requirements must electronic cash registers meet?
Acording to HMRC’s Point of Sale VAT Retail Scheme (VAT Notice 727/3)
Which has been in force since 11.01.2013, the legislature aims to prevent tax evasion through possible manipulation of electronic cash registers. Operators of an electronic cash register must ensure that their cash registers meet the following legal requirements:
- all cash payments as they are received by you or on your behalf from cash customers for your retail supplies
- the full value, including VAT, of all your credit or other non-cash retail sales at the time you make the supply
- details of any adjustments made to these figures
Business concepts for delivery services
The opportunity to enjoy one’s favorite meal comfortably at home instead of in a restaurant is becoming increasingly popular in Europe. This is the hour of food delivery services. The delivery services often work through intermediary platforms that bring restaurateurs and consumers together.
There are essentially two business concepts for food delivery services.
The restaurateur operates their own delivery service and delivers the ordered dishes themselves. Or the restaurateur enters into a contract with a professional online delivery service and has them deliver the ordered meal. The delivery service receives a commission for their services.
This business concept has the advantage that the commissioned delivery service takes care of the entire logistics of the food order. From the digital menu, the online ordering process and the choice of various payment methods to the delivery of the dishes, everything is taken care of by the delivery service. The disadvantage, however, is the high sales commissions.
Restaurants with their own delivery service can work independently and with much lower commission fees. However, this business concept has proven to be too expensive for many small business owners, as it often requires significant additional administrative effort, additional staffing needs, and associated costs. Typically, the engagement of a delivery service will be profitable for the restaurateur if it can generate additional business, as orders placed through the delivery service may occur at different times than in-person sales!
As for which cash register systems are suitable for delivery services, the legislature has left it up to the entrepreneur to decide which system to use for cash management. However, it is important to ensure that the system meets the legal requirements and industry standards at the time of purchase. Digital systems have significant advantages over a standard cash book, as they provide legal certainty and a wide range of functionality, such as an overview of cash transactions and inventory, electronic cash closings, the ability to export financial data, and much more.
To be successful in the digital world, a multichannel strategy is required.
In addition to traditional walk-in restaurant visits, online ordering directly from the restaurant or through a delivery service is a booming business model. As a result, competition is fierce! The integration of in-person sales with online sales is becoming increasingly important in the marketplace due to the presence of websites and/or online shops.
For example, OrderYOYOs shop system provides a mobile system with its own website for fast food outlets, as well as restaurant owners with delivery service, allowing customers to conveniently order food online from the comfort of their homes through the web and app shop.
To use the delivery service shop system, the customer must install an ordering app on their smartphone or iPhone. From the mobile menu, the desired food or menu can be selected, ordered online, and paid for cashlessly. The web and app shop relies on common online payment systems such as PayPal, Credit Card, and others, but also offers mobile payment, a relatively new payment method specifically designed for delivery services, which allows payments to be made conveniently from anywhere via smartphone or iPhone. It couldn’t be easier.
In addition to the shop system, OrderYOYO also offers a cash register system specifically tailored to the needs of restaurateurs and delivery services.
