Tips – what does it mean?

A tip is a recognition of good service and is most often given as an extra amount on top of the bill itself. In restaurants and cafés it is common for guests to leave a tip as a personal thank-you to the staff – especially waiters and bartenders. Tips can be given in cash, but in many places it is now possible to add a tip directly via the payment terminal when a customer pays by card or mobile.

The tip amount can be set manually, or the customer can choose between fixed percentages, e.g. 5 %, 10 % or a custom amount. This makes it quick and easy for the customer while ensuring staff are fairly rewarded for good service.

An example from a café:

Imagine a café where a customer has had really good service and chooses to pay their bill of €50 by card. When the customer pays on the payment terminal, they are offered the option to add a tip. The customer chooses to give 10 %, which corresponds to €5, and this is then recorded as a tip in the system. The amount is later carried over to the cash-up and distributed according to the agreed internal procedures, typically among the serving staff.

Tips also affect the cash balance and the overall accounts. That is why it is important that tips are recorded correctly in the POS system, so that earnings, expenses and any internal distribution of staff pay and supplements give a true picture. Clear recording contributes to a correct cash balance and can also help in understanding turnover and the customer experience across shifts and employees.

Why are tips relevant in a POS system?

A modern POS system, like the one from Flexybox, makes it easy for both staff and guests to handle tips. The system lets you add tips directly at payment – quickly, easily and clearly. For management, it means all transactions are recorded correctly and that tips can be tracked, checked and, if relevant, distributed among staff without errors or misunderstandings.

This creates transparent, professional operations where both employees and guests feel more secure and satisfied.

How does the Flexybox system handle tips?

When you use the Flexybox till system, you can add tips directly in the payment flow. The customer is offered the choice to give an extra amount when paying, e.g. on the payment terminal. This is built into the system and requires no manual entries from staff. Tips are automatically linked to the bill they were given with, and also appear in cash reconciliations and sales reports.

Frequently asked questions

In most countries tips are taxable income for the employee, but how they must be reported – and whether the employer has to report them – differs from country to country. Check the rules with your national tax authority and follow the business's internal guidelines.

It depends on each business's arrangement. In some places each waiter keeps their own tips, while other businesses have a scheme where tips are shared among all staff, for example according to the number of hours worked.

Yes, with the Flexybox POS system tips can be added electronically when paying by card or mobile, which makes the process simple and user-friendly.

Yes, when tips are recorded in the Flexybox system, they are automatically included in sales reports and cash-ups, so you always have an overview of the full amount and can reconcile correctly.