How to help clients go cashless

by Junita Jackson

The day of the cashless business continues to draw ever closer. You may have heard of how Visa declared a “war on cash” last month as they offered $10,000 to individual restaurants to go cashless, and the bank calculated that businesses could save billions in revenue and save millions of hours in labor. And while Visa does stand to directly benefit from such an approach, accountants should begin talking to their business clients about the reasons they should go cashless.

This conversation needs to happen sooner rather than later. Going cashless entails upgrading a business’s digital payment technology, and the sooner the business realizes the benefits, the sooner they can consider how to upgrade. At the same time, accountants must remind clients of mistakes that can be made while going cashless and afterward as well as how to avoid them.

The benefits of a cashless business

The simplest way to talk to clients about the benefits of going cashless is to note how fewer individuals these days are using cash. A 2016 Gallup survey found that only 24 percent of Americans make all or most of their purchases with cash as opposed to 36 percent five years ago. Perhaps unsurprisingly, the group who have dropped off the most in using cash are technologically savvy young people. Customers are embracing not just debit and credit cards, but new mobile technological payments instead of cash.

A business which has a younger clientele should thus more strongly consider going cashless. And going cashless can be just as convenient for any business as it is for customers. Employees can quickly handle transactions without having to waste time digging through a till for the right amount of change. This makes each transaction faster. Businesses can thus serve more customers and the customer spends less time waiting in line.

And while some small businesses may be concerned about the threat of hackers or electronic security, going cashless can improve physical safety. Having no cash in a till is the ultimate deterrence against thieves, robbers, and the occasional unscrupulous employee. Financial transactions also become more secure, as businesses no longer have to worry about how to store and count cash. Instead of sitting down at the end of every business day counting the total value of cash transactions, a financial ledger can quickly show how much cash the employee has, saving costs.

Going cashless is a major change which breaks with thousands of years of civilization. But the potential benefits of attracting a younger clientele as well as being able to quickly record transactions and having a real-time knowledge about a business’s financial health is huge and can be worth it under the right circumstances.

Slow and Careful Implementation

Despite these benefits of going cashless, plenty of business owners will still balk at the concept. Even if only 24 percent of Americans make all or most of their purchases with cash, that may mean losing a significant amount of customers. For these reasons, the process of updating point of sale technology to go only cashless needs to be done carefully. And according to the U.S. Federal Reserve Bank of San Francisco, 60 percent of business transactions under $10 are done with cash, in part due to how many small businesses require a minimum purchase to accept cash.

This means that as noted above, only certain businesses, such as online casinos, should look into going cashless and those that do may face a tricky transition period where they may lose a few customers. Above all else, a business interested in going cashless must make huge efforts to let customers know about this change. This includes sending an email and social media alerts as well as posting signs letting customers know that this business is going cashless.

Training your employees is also a critical aspect of going cashless as well. Going cashless almost certainly means upgrading a business’s point of sale technology, and all employees should be aware of how to use it. But even more important than that is that employees know why the business is undergoing this change and know how to answer common questions. For example, some customers may try to argue that a business has to accept cash as it is legal tender. This is not the case, which is why you cannot pay for your groceries by dumping a giant jar of pennies at the cash register.

Remember that no matter how much a business tries to inform customers of new changes, there will always be some customers who will be caught unawares and react negatively. Your client’s goal is to make that number as small as possible. By making the downsides smaller with preparation and training, your client can reap the benefits of going cashless and help make things easier for their customers as well.

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