Cash: A Coronavirus Casualty

I was reading an interesting article this weekend which must have gladdened the hearts of everyone at HMRC, the new stars of the accounting world the Challenger Banks and Accountants everywhere.

As the lockdown has continued the switch by the population to online banking and shopping via a card allied to the massive increase in contactless transactions as a safeguard has seen very little cash actually changing hands. It’s a simple and inescapable fact that cannot be denied.

The public are carrying less and less actual cash in their wallets or purses and the large billfold wallet so beloved by leather shops throughout the land are shrinking in size as they hold so little cash but more and more debit and or credit cards.

Pockets no longer jingle with the sound of loose change and I wonder when we will be offered some sort of sweet or goodie rather than change that many of you of a certain age will remember happened in Italy pre Euro when the lira was running at 1,700 to the £1.

HMRC are no doubt rubbing their hands together with glee at the prospect of traceable transactions like never before. Accountants will be pleased as they rely more and more heavily on accounting records being maintained be third parties based on actual transactions from the banks like Coconut, Starling etc and cash which by it’s very nature requires far more accounting/bookkeeping steps becomes more and more irrelevant.

As the pandemic hits small business profits now and for some time to come I’m thinking let’s hope we are spared HMRC rattling on about undeclared takings or turnover next year to explain a fall in profits because no one will be paying in cash.