The average small business owner (SME) spends the equivalent of more than three working weeks a year on cash-related admin alone. 

A study of 500 SME owners, side hustlers and sole traders found they spend nearly three-and-a half hours a week on jobs like counting cash and travelling to pay it into accounts. This amounts to more than 178 hours a year – the equivalent of 22 working days.

Typically, SME owners will spend one hour every week travelling to pay in money. But a third have had to skip work breaks, while 13 per cent have shut up shop, to pay money into their bank account.

Despite this, 71 per cent still believe ‘cash is king’, seeing it as essential for keeping their business running (16 per cent) and giving customers more choice (40 per cent).

 

With SME owners estimating 29 per cent of the payments they receive are in cash, 58 per cent argue their business would struggle if they only accepted card.

And 11 per cent would prefer to take cash only, with card processing fees (43 per cent), dependence on technology (27 per cent) and cashflow disruption (19 per cent) among the most off-putting aspects of card machines.

 
Emma Leslie, founder of Thom’s bakery (@thomshomemade) in Dunoon, Scotland said: “What started as selling bread from my driveway has quickly grown into running my own bread and coffee van, selling freshly baked goods and specialty coffee on the Dunoon Promenade each week!  
 
“As a small business owner, running everything by myself, time is probably one of the most valuable things to me. Each week I’m baking and preparing all of the food myself, but I’m also responsible for ordering ingredients and stock, serving customers, cleaning, doing the accounts and admin, planning menus, creating our social media content, marketing the business and organising collaborations and events. I love being able to be involved in everything, but it does mean that any time that I can save on jobs outside of day-to-day business, gives me more time to focus on the things that really help Thom’s grow.  
 
“Because we’re a small business, taking cash alongside card is really important to us. And as we’re based in Dunoon, access to a physical bank branch is really limited, so depositing cash would mean taking an afternoon trip across the water, and an afternoon away from bakery prep. So being able to deposit my cash takings at my local post office makes the whole process a lot easier and less time consuming, meaning I can focus on baking prep, admin, creating content, or things that can help the business to run smoothly and efficiently!”
 

Ben Hunter Woollard, Head of Banking at Post Office, which commissioned the research and has over 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.”

The study also found 24 per cent of business owners are put off by accepting more card payments, or moving to digital transactions only, due to the extra admin involved; while 23 per cent worry about the risk of chargebacks.

Meanwhile, entrepreneurs bank £1,738.12 in cash on average every week, but 60 per cent find the process of depositing cash inconvenient when juggling it around other business needs. 

And 69 per cent of those polled via OnePoll believe easier and more local ways to deposit notes would allow their business to grow, while 67 per cent say it would increase their opportunities to trade.

Some 70 per cent have delayed depositing their earnings due to a lack of time, and as a consequence, they’ve stored their takings at home (61 per cent) or even on their person (26 per cent).

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. It gives customers flexibility and helps drive sales 

“By providing convenient local deposit services, our branches help make cash management simpler, freeing up time for businesses to focus on what matters most.”