Handling money is a headache for small companies – however most nonetheless say ‘money is king’
Most small businesses don’t think they’d survive if they stopped taking cash.
Businesses spend more than three hours a week on cash-related admin(Image: Getty Images)
The typical small business owner dedicates more than three working weeks annually to cash-related admin. Nearly three and a half hours weekly are consumed by tasks such as counting cash, totalling over 178 hours a year – the equivalent to 22 eight-hour working days.
Research involving 500 small business owners, sole traders, and those with side hustles revealed one hour a week is generally spent travelling to deposit cash – which averages £1,738 each week. Yet, 60% find the process inconvenient when balancing it alongside other business needs.
A third have been forced to skip work breaks, while 13% have had to close their shop to get the money deposited before closing. But seven in 10 still maintain ‘cash is king’.
SME owners estimate 29% of the payments they receive are in cash, with 58% claiming their business would struggle if they only accepted card. The majority of owners view it as a vital component of keeping their business running and giving customers more choice.
One in 10 (11%) would even prefer to only accept cash as they are put off by card processing fees, cashflow disruption and having to rely on technology.
Ben Hunter Woollard, head of banking at Post Office , which commissioned the research and has more than 10,000 branches where businesses can deposit cash, said: “Cash flow is the lifeblood of many small businesses, but depositing cash shouldn’t become a burden.
“What seems like a simple trip to pay in takings can often mean valuable time away from customers and running the business.
“Our branch network makes it easier for businesses to deposit cash locally and securely, giving owners back precious time to focus on what matters most: growing their business.”
Local Post Office networks make it easier for businesses to deposit money(Image: Getty Images)
The study found 24% of business owners are put off from accepting more card payments, or moving to digital transactions only, due to the extra admin involved. While 23% worry about the risk of chargebacks.
Seven in 10 of those polled, via OnePoll, believe easier and more local ways to deposit notes would allow their business to grow, while 67% say it would increase their opportunities to trade.
Some 70% have delayed depositing their earnings due to a lack of time, and as a consequence, they’ve stored their takings at home (61%) or even on their person (26%).
Ben Hunter Woollard, from Post Office, added: “Digital payments may be growing, but as the findings show, cash is still delivering real value for businesses.
“By providing convenient local deposit services, our branches help make cash management simpler, freeing up time for businesses to focus on what matters most.”
