Why Your Business Should Not Be A Cash Only One
Even though it's legal to run a cash-only business, it's not a good way to grow. Besides making it hard to keep track of your money, only accepting cash will eventually limit how much you can sell. Cash is being replaced more and more by digital ways to pay that are easier to use and that people prefer.
Some merchants only take cash because the small cost of transaction fees is enough to keep them from accepting credit cards. But if you don't use digital payments, you miss out on many opportunities. For example, you can’t run an eCommerce store if you only accept cash, and therefore you are limiting your income drastically. Read on to find out why accepting credit and debit cards is important for your business.
Cash Is Risky
If you solely deal in cash, your company is more vulnerable to theft, robbery, and the use of counterfeit money. It's crucial to lessen those dangers for the sake of your company and your clients. One easy method to achieve this is to welcome and promote digital transactions, in which money is sent directly from a customer's bank account to your own.
There is no doubt that protecting your business's finances and your customers' credit card information is a top priority. If the prospect of having your credit card information stolen or of having your personal information compromised online is unsettling, you should consult with your payment services provider to find out the measures they have put in place to protect your money. You can also learn more about high risk payment processing from HBMS if you have a particular need because of what you sell.
Cash Makes Accounting Hard
One of the main reasons why you shouldn't run a cash-only business is that it can be hard to keep track of the money. Keeping track of cash is harder than using online payment processors. The fact is, money can go missing.
Other issues with cash and accounting are that cash is much more likely to get mixed up with personal money. This can make things very hard when it's time to pay taxes. Cash can sometimes go missing by accident. It's also hard to keep track of who bought what and when. Your accounting software doesn't automatically add cash to it, so you'd have to waste time entering information by hand.
In reality, there are just too many things that can go wrong with cash to make it worth the trouble. Cards are much easier to deal with.
You’ll Lose Customers
Cash used to be a very common way to pay, but now fewer people carry cash with them every day. Simply put, customers won't buy from your business if they don't have cash and you don't accept credit cards. Even more than this, a lot of people choose to use credit cards because they can get rewards. If you don't accept credit cards as a form of payment, you're taking away a convenient way to pay, which could cause you to lose customers.
