Advancements in technology continue to digitise our world in many ways, including financially. In recent years, more businesses and events are turning to cashless systems.
Whilst cash still remains popular in businesses dealing in small purchases such as cafes, if you run a business that handles larger transactions then changing to a cashless system could benefit you in many ways.
Managing your money through electronic payments helps you to keep track of income and expenditure. If you use a digital system, you have extensive logs of information
such as where the money came from or is going to, how much you have currently and what you are expected to receive or pay. To ensure the best security and effectiveness with electronic payments, consider investing in technology that transfers money instantly whilst also tracking payments.
Running a cashless business also protects you from theft. Holding large amounts of cash can make you a target, and the time and expenses dedicated to ensuring your cash is secure could be better used on more effective financial management systems. Whilst online methods come with their own risks, there are systems you can implement to protect you such as two-factor authentication, third-party data protection and cyber liability insurance packages.
Cashless business models are also time- saving. By cutting out cash handling, you can save time with your client interactions as well as cutting out the end of day counts and lengthy trips to the bank to make deposits and changes. Whilst cashless systems are not right for everyone if this is a viable option for your business you should consider consulting your accountant. If you decide to make the switch, give clients a grace period to be introduced to the new system and explain how it could benefit them.
*** This publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication. Publication date April 2018