Often businesses accept cash from customers, but is cash really worth the hassle? While cash may seem to be quick and easy, there are difficulties with cash that each business needs to weigh up. Here are 6 things to consider when you next accept cash.
1. Cash is a security risk
If you collect a lot of cash payments from customers, you have a security risk of this cash being lost or stolen. You also need to keep your cash float secure when you close the store for the day.
2. Keeping change is a hassle
Ever had a bunch of customers in a row give you $50 notes as payment and been unable to give them change? And have you thought about how much of your working capital for the business is tied up in your cash float?
3. Cash is a labour cost
Think about the effort you go to managing physical cash – giving change, going to the bank and queuing up to make the deposit. Either you or someone in your business needs to do it and this means time away from your business.
4. EFTPOS is easier for bookkeeping
When your customers pay by card and use EFTPOS rather than cash, your bank lists this as a transaction in your business bank account.1 This makes bookkeeping with your accountant much easier at tax time when you need to show your income.
5. EFTPOS instantly shows in your account
When a customer pays you by card, your account is instantly updated with payment. This can help your cash flow, so it is easier to move money in and out of your business account. You don’t have to wait until the end of day before you can make a payment.
6. Rising customer expectations
Many customers now don’t carry cash at all and they expect to pay with Near Field Communication (NFC) enabled mobile phones and watches. To accept NFC payments, you will need to switch to an EFTPOS payment solution.
To switch completely to EFTPOS is an important decision for your business and may make taking payment much easier for you.
Things you should know
1 Westpac’s products and services are subject to terms and conditions and may be subject to fees and charges.
This information does not take into account your personal circumstances and is general. It is an overview only and should not be relied upon. This information including any tax information provided in this article should be used as a guide only. We recommend that you seek independent professional legal and tax advice about your specific circumstances.