With the development in technology, businesses are becoming cashless, which means they are accepting payments only through the means of debit cards, credit cards or mobile wallet.
Advantages of not dealing in cash:
- Security purposes: Some may say that accepting payment through online modes include certain security risks, but that is not true in most of the cases. There are various ways of keeping your money and your client information safe online. You can hire a person to ensure IT security in your company. On the other hand, cash can be stolen, and it can be lost or destroyed. Accepting cash increases the chances of employee theft and may also expose your employees to the risk of robbery.
- Saves time: It takes a lot of time to count and recount the cash. Moreover, you will have to keep account of your cash by inputting the data manually in accounting software. This also wastes a lot of time. If your business deals with only cash, then you have to frequently visit the bank to deposit the money, which is also time-consuming. Accepting payments through online modes solves this problem. You do not need to go to the bank as the money is instantly transferred to your bank account.
- Changing in the preferences of the customers: In today’s world, most of the people prefer to make payments by credit cards or debit cards instead of giving cash. This is because this mode of payment is more convenient and it helps them to keep better track of their expenditures.
- It is hard to keep the record of cash: It is a difficult process to keep the record of your cash. Unrecorded cash is spent more frequently. Thus, you will lose your money on unnecessary things. Unrecorded cash may also increase the chances of employee theft. Since payments by cash does not keep any paper trail, so it becomes difficult to reconcile your accounts at the end of the day. Accepting cash through online modes helps in keeping track of the money more efficiently.
- Payments of bills cannot be made by cash: The owners cannot pay their bills with cash and has to pay them through ACH transfers or credit cards. So, it is always better if the payment of the customers are deposited in the bank accounts directly or otherwise the business owners have to visit the banks for bill payments frequently. This increases the chances of missing a bill payment.
Though there are certain advantages of accepting cash in a business such as you can get the money immediately, you do not have to pay any processing fees, etc. but we cannot deny the disadvantages mentioned above of accepting of cash in the business. As the times are changing, technologies are developing, and preferences of people are also changing, so it is necessary for the companies to start accepting multiple ways of payment.