Cash Or Cashless: Unlocking the Power of Digital Payments for Small Businesses
Updated: Jul 18
In today's rapidly evolving financial landscape, small businesses need to stay ahead of the curve to remain competitive. One of the most significant shifts we're witnessing is the transition from traditional cash transactions to digital payments. If your business only accepts cash or charges more for card transactions, you might be missing out on substantial benefits.
The Power of Digital Payments: A Real-Life Example
A recent New York Times article highlighted the story of Juanny Romero, the CEO of Mothership Coffee Roasters. Romero adopted digital payments early on, using Square, a low-cost digital payments system for small businesses. This strategic move saved her $3,000 a month in merchant fees for credit card processing. As she expanded her business, she added more payment options, including Apple Pay and Google Pay.
The Pandemic and the Shift to Cashless
The COVID-19 pandemic accelerated the shift towards cashless transactions. Romero noticed that her customers no longer wanted to use cash, and her employees did not want to handle it. This shift was further accelerated by the coin shortage in 2020. Going cashless also saved on labor costs as her managers no longer had to spend time depositing cash.
The Benefits of Going Cashless
Many small businesses are realizing the benefits of digital payments, including faster checkout times, lower labor costs, increased security, and meeting rising consumer demand for cashless transactions.
The Challenges of Going Cashless
However, transitioning to digital payments is not without its challenges. There can be a learning curve for entrepreneurs, a lack of accessibility to credit cards for low-income consumers, and privacy concerns. But the trend towards cashless payments is expected to continue, driven by the increasing use of mobile wallets and the benefits of immediate payment, increased sales, and the ability to sell to customers who might use other currencies.
How a CPA Can Help
As a Certified Public Accountant (CPA), I can help you navigate these challenges and make the most of the opportunities that digital payments offer. Whether it's choosing the right digital payment system, understanding the fees involved, or integrating the new system into your existing financial processes, I can guide you through every step of the process.
Conclusion: Embrace the Future
By embracing digital payments, you can not only improve the customer experience but also streamline your operations and potentially save a significant amount of money. But don't just take my word for it. Let's sit down together and discuss how this shift could specifically benefit your business.
I invite you to schedule a time to meet with me to discuss how we could change your payment methods and save you both money and time. Let's explore the possibilities together and set your business up for success in the digital age.