We keep you updated with the latest news from Martin Hood and helpful information whenever there is a change to employment or tax laws.
November 7, 2019
The use of cash when purchasing goods or services has become uncommon in recent times. Even payment via debit or credit card is dwindling. By 2022, it’s estimated that payments through mobile devices will increase up to 28 percent, says Syed Balkhi, entrepreneur. The thought of halting the use of cash, especially for small businesses, may sound crazy, but here are three reasons it may be beneficial for your company:
1. Today’s consumers don’t appreciate having to wait in line just to pay for something. Studies show that consumers prefer the scan-and-go, cashier-less stores over standing in a line waiting to pay. Depending on your industry, it’s even possible for consumers to change their mind about purchasing an item by the time they reach the cashier. In addition, having the option of mobile pay can be beneficial for “business on the go.” With no cash, there’s no need to worry about setting up a register if your business is in attendance for a local business fair.
2. The accounting side of dealing with cash can be tedious. Counting every penny can get old and even after counting all of your daily cash it’s possible to be short or over the amount you anticipated. By allowing only card or mobile payments, the accounting becomes, automatic, accurate, and simpler.
3. There’s risk in keeping large amounts of cash at any given location. To reduce this risk, most businesses make daily deposits to banks. However, if there is an absence of cash, there is no risk of that money being robbed (whether by a random criminal or even an employee within the business) and also no need to make those daily trips to the bank.
Not all businesses should go cashless. You need to “consider your customer base” and make the decision based on this and other pertinent information. If you’re customers are truly loyal then they’ll have no problem switching to card or mobile payments.