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What’s the biggest time-wasting task within your small business? According to new research by Barclays, it’s likely to be… depositing cash. Yes, you read that correctly. So much for the digital age…

Wasting Time – and Wasting Money

The research by Barclays Business banking revealed that the average SME owner spends around 26 hours a year depositing cash, meaning that annually, this task accounts for 93 million hours of UK small business

 

working time.

And it’s not just time that’s being wasted; it’s money too. 18% of the 1,000 SME owners surveyed admitted they temporally close their business to deposit cash at their bank. Even more surprisingly, this figure rises to 47% among the youngest entrepreneurs (those between 18 and 34 years old).

“Running a business is time-consuming enough, so shutting up shop to deposit cash simply shouldn’t be a factor preventing businesses staying open for their customers,” said Ian Rand, CEO of Barclays Business banking – and it seems that Barclays have come up with a so solution.

“We recognise that time is precious and want to give our business customers an hour back in their day with our new cash collection service, meaning they can get on with running their business, staying open, and increasing their cash flow as a result.”

A Tiresome Task

27% of the business owners surveyed admitted that they regularly delay taking their earnings to the bank, and on average, this delay is a shocking two weeks; not the best idea for their business, as this can disrupt their cash flow and lose them interest of their money. Despite this, rather than depositing their money, 7% confessed that they keep their cash in a locked safe or in a supposedly safe place – under the metaphorical mattress!

16%, however, claimed they delay depositing their cash because they just don’t have the time to get to the bank.

Fear of Theft

Perhaps surprisingly, given their reluctance to deposit their takings swiftly, the survey respondents were concerned about the safety of their cash. 19% said they have lost their takings, or had them stolen – and of those entrepreneurs who haven’t yet been victims of theft, 27% said they are worried that cash will be stolen from their business, while 17% admitted they were concerned that cash may be stolen from employees sent to the bank to deposit it.

Those respondents with businesses in London were the most concerned about theft from someone outside the business, with 36% saying this is a worry, while among SME owners in the North West, the chief concern, named by 28% of respondents, was that their employees would steal takings when tasked with depositing them at the bank.

Ian Rand, CEO of Barclays Business banking said:

“Handling large volumes of cash payments can be worrying for any business owner or employee. We believe Barclays Collect will revolutionise the way businesses deposit cash while giving them the confidence that their hard-earned takings will be deposited securely into their bank account.”

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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