When was the last time you pulled out your wallet and paid with cash? There is no denying that fewer people are paying with cash. And, with the onset of COVID, fewer people are comfortable handling cash. The terms digital wallet, online and mobile banking are now familiar and these forms of cashless payment are trusted by consumers across the U.S.
Businesses are eliminating cash registers and coin rolls in favor of a safer, more streamlined payment process. And with fewer consumers carrying cash, this might be the time to consider taking your small business cashless. The benefits to this cashless craze are easy to digest. It helps your business processes run smoother, makes your job easier as an owner, and can provide an overall better experience for your customers.
Here are three reasons why your small business should consider cashless transactions:
Lower risk of theft – It is doubtful that you stash your money in a mattress at home. So why keep oodles of money on hand at your business? There are very real security risks associated with having large quantities of cash onsite as robberies are still a common crime. When you no longer keep cash on-hand, the risk of robbery goes down – helping keep your business, your employees and your customers safe.
Gains in efficiency – As your dad used to say, “time is money”. Using digital systems takes much less time to process payments. For businesses that sell to consumers, this helps to cut wait times and can increase in the number of transactions a volume-based business can process in a day. Another benefit is fewer manual daily, monthly, weekly and yearly processes. Say goodbye to physical counting, calculating, balancing or recording of your books every night, and forget those daily bank deposits. This can equates to fewer manual mistakes and more time to focus on what really matters for your small business.
Simpler tax filing
Digging receipts out of your purse, wallet or desk drawer will become a thing of the past. Most banks, credit unions and credit cards offer programs that allow you to create a budget, track your expenses and view your account in real time. But even better, these programs can automate your tax processes making it easier to capture, tabulate and categorize your yearly information come tax time.
While there are definite benefits to going cashless, there are a few things to consider before going totally cashless.
- Consider what percentage of your demographic pays in cash.
- Would cashless commerce help or hurt the majority of your customers?
- Can you afford to lose a percentage of your customers?
- Can you afford to pay the fees that come with credit and debit card transactions?
The bottom line: Know your customers’ preferences and weigh the benefits of going cashless against its costs. Make the transition only if the upside clearly outweighs the extra expense and possible risks for your business. Looking for more ways to move your small business forward? Deppe Communications can help your small business succeed. Click here for more information.