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Why go cashless when that feeling you get from having cold cash in your hands can be really exciting?

Well, it could also be terribly holding your small business back.

Depending on your kind of business, location and clients, this might not be an easy feat to pull off.

However, there are a lot of benefits you could get from avoiding cash from clients for your small business and going cashless instead.

Here are 4 reasons your small business should go cashless.

1. You reduce the risk of theft

Having cold cash on hand makes it very likely that you could go robbed, or your cash could get stolen by your employees.

This could be devastating for any small business. This also increases the risk of having an employee lose their life due to an attack.

So, when you go cashless, you not only keep the assets of your small business secure, but you also increase the safety of your employees.

2. You appeal to savvy clients

Depending on your location, when you go cashless, you set yourself apart from competitors around you.

And interestingly, you attract tech-savvy clients that are also digitally minded.

And an important point to also note when making a transition to going cashless is to communicate it clearly to both old and new clients that you are transitioning. Failing to do that could affect cash flow into your small business. And that also gives you the opportunity to get feedback from “not-too savvy” customers if that would be an issue for them.

3. It gives you insight into your financial health

A big problem small businesses that aren’t cashless face is collecting hard cash, recording, storing and making sense of your book.

But this could be easier as you could eliminate the collection, storing part of updating your account.

This also allows you access to data and analytics instantaneously. Nowadays, getting your transaction breakdown from your bank is as easy as one click.

Read Also: How To Never Run Out of Cash Ever Again

4. It is an easier, faster way of getting paid

A lot of big business like Starbucks have been promoting apps that give customers the liberty of paying without waiting on a queue, and even well ahead of time.

They understand that customers are very busy and would not want that.

Another advantage is that going cashless gives you the opportunity to run your business on the go.

Rather than having your clients come down to a register to queue up and pay, mobile payments make it possible to be right where your clients are.

Conclusion

As said in the beginning paragraphs of this article, you have to consider a lot of things to determine if going cashless would be good for your small business.

But if you have loyal, savvy clients, you would definitely reap the rewards.

And now have learnt why it is advantageous that you go cashless in your small business, you can now decide better which is great for your small business.

2 Comments

  • Avatar

    Lorita, October 31, 2019 @ 7:20 AM Reply

    What if it’s an online food store and some people would like to pay on delivery?

    • Avatar

      James Ma, October 31, 2019 @ 7:51 AM Reply

      Hello Lorita!
      Great question!
      The effectiveness of a small business going cashless depends on a lot of factors. Like your clients’ preferences and location, too.
      It could be that they would rather avoid bank charges and pay in hard cash instead. And also, it is very possible that your clients believe that paying in hard cash is faster for them.
      Irrespective of the case, a safe way to appeal to your clients is to create an online method of accepting payment. Give them that flexibility to pay with whatever method feels comfortable for them.
      I hope this helps.
      Cheers!

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