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The Death of Cash

We went to Adelaide Oval to watch the Crows play a few months ago. We used PayWave to pay for our food as you must through nearly all of the oval’s facilities. A few days later we drove to Melbourne and stopped for lunch at the bakery in Nhill. Having left Adelaide without much cash we were a little surprised to see a sign indicating all purchases were cash only.

According to data from the Reserve Bank of Australia (RBA)’s ongoing Consumer Payment Methods survey, published on 24 May 2108.The percentage of cash payments in the country plummeted from 69 per cent in 2007 to just 37 per cent in 2016.

That means a staggering 63% of all payments now involve no cash. If the current trend continues, physical cash could vanish in Australia as soon as 2026. My hairdresser informs me that 80% of his client payments are cashless and his friends who are hairdressers are reporting similar levels of cashless payment.

What does it mean for your business?

This is another form of digital disruption that is sweeping the world. It may be nice to say stop, I want to get off but we all know that isn’t going to happen. Retiring is a way of stopping but it will still impact you in your daily life.

The other option is to accept that change is a part of life and manage that change to your advantage.

How do I do that exactly?

One of the biggest changes is to ensure the cashless payments you receive actually go into your bank account and match the goods and services you provided. The right salon manager software will not only do this but take a matter of minutes to do each week. No need to spend hours doing this yourself or paying a bookkeeper.

The days of accepting cash and not putting it through your books will disappear, they’re nearly gone now.The Australian Taxation Office (ATO) is already connected to your bank accounts. They have clever algorithms to determine industry norms and identify those who may be avoiding their tax liabilities. New payroll reporting requirements being phased in over the next two years will also require more change.

The other advantage of adopting the right salon manager software is the level of automatic reporting about your whole business. Daily, weekly, monthly, quarterly income. Expenditure reports. Staff sales reports. Stock reports and many, many more.

If you want to look at a good salon software system go to www.salonmanager.com.au