The big debate in business now seems to be: cash payments.
Should businesses accept them, or not?
This question does seem a bit wild, however have you ever really examined how often you yourself pay for something in cash?
With the recent surge in mobile payments and contactless payments, cash payments are becoming more infrequent than ever.
Research suggests that by 2022 mobile payments will actually exceed contactless payments!
And so… the debate begins: Should businesses choose to stop receiving cash payments?
The benefits of making a decision like this are definitely worth researching, as there are many business owners that are fully behind this belief.
Should Business Owners Stop Receiving Cash Payments?
Customers Want Purchases To Happen Fast
Customers dream of quick, efficient purchases and cash payments massively slow this process down.
Think of you local supermarket, how often do you choose to line up at the till behind someone who is paying with cash?
How often do you head to the self service, or walk around the shop with the Scan and Go service?
Customers are desiring a purchase experience that involves no lines, no checkouts, just a grab and go mentality.
By implementing this in your business, you will be processing sales quicker and making your customers happy!
You will be meeting their needs, by providing the quick, efficient purchase process that they want.
But what about those who still want to pay in cash?
Not every customer thinks like this, and it would be foolish to just reject their custom!
These sort of customers, who don’t ever pay on card (or prefer not to), would take their business elsewhere and you’d be losing their money.
The obvious argument here is that if some customers still pay with cash, refusing cash is refusing their custom.
Clearly, saying no to cash payments won’t benefit every business. However, there is a good follow up argument to be heard…
The Key Point In The Debate
The key point in this personal debate is this…
You need to ask yourself, how many of your customers really pay in cash?
How many of these customer, might actually pull out their card, if you said ‘sorry, we don’t take cash’?
Is this amount of income enough to cover the time it takes you, or a member of staff, to process and bank these cash payments?
Through working out how many hours this costs your business – you can make a well informed decision!
By switching to solely contactless and mobile payments, it means that all of your income can go directly into your accounting software.
With Xero’s accounting software, and its 3rd party add-ons, you can process all of your sales within your accounting software…
This means that every single sale of your business can be processed digitally, and be tracked in the right ways.
If this is the case for you, going cash free might be a valid option that would improve your business.
You would not only save time on the back end of processing sales, but you would also, if you fully commit to turning your back on cash, save money on the time it takes to process these sorts of payments.
Where Do You Fall In The Big Debate?
We love a good debate, and would love to know what you think of this concept…
Please get in touch with us, and ask for our accounting & bookkeeping services below if that is of interest to you.
In this debate the answer, for now, will be different for each and every business.
But which side does your business fall on?
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