It's relatively rare to come upon an accounting firm that only accepts cash payments. Of all industries, financial services is among the most tech-savvy and in tune with the latest methods of payment. However, it is possible that this can't be said of all of a firm's clients.
A number of mom and pop stores still hold on to old strategies. While these types of shops might provide a personalized experience, having known local consumers for their whole lives, there isn't much growth potential.
So, when dealing with a client that hasn't embraced the 21st century and still only uses paper on the sales floor, professional bookkeepers need to ask these people why they aren't interested in surviving for the long haul. The fact is, staying up with the times and embracing credit card transactions is almost a necessity in this day and age.
The cost is negligible
Many entrepreneurs who are set in their ways fall back on cash because there's usually a 2 percent to 3 percent fee tacked onto each credit card transaction. While this is true, The Globe and Mail pointed out, companies waste money in terms of man hours when they only process cash. The source detailed that employees have to bring this cash to the bank and count it manually, which is really just a waste of time.
Makes your job easier
As an accountant, you'll quickly realize that relying on a cash-only client is going to be difficult. It will be easier for both you and your client to manage finances digitally, which is usually simpler to do with credit and debit card transactions.
Think of it this way: One must manually enter in dollar amounts when a cash transaction occurs, which can be time consuming and breeds mistakes. However, digital transactions are automatic and can be synced with accounting software in real time, making everyone's jobs easier.
Data analysis is enabled
When credit card transactions are processed, store owners can use the information from this process to learn more about their customers, The Globe and Mail reported. Sure, they could write down details when shoppers pay in cash, but the time wasted would be massive, and customers might think it's creepy that employees are recording the details of the transaction right in front of them. But, a digital payment can link up with financial programs and show which customer bought what, when and where. This could lead to more targeted advertisements and even more financial success in the future.