Cash has benefits and drawbacks. Those change based on perspective

For the Seller of Goods and Services

1. Advantage - It's private. No one but you and the buyer knows a transaction transpired. If that transaction is not entered into a Sales System there may be no record of it at all.  If that money is not deposited into your bank account, it can be thought of as a "tax free sale".  That is illegal, but it happens all the time. 

2. Disadvantage - You have to keep a "cash drawer and/or a cash bank" to make change. You need to secure the money as it comes in. You need to be mindful of security for the premises. If you have employees you need to be mindful of pocketing money during transactions (short ringing the register) and/or direct theft from the cash drawer/cash bank. You need a cash management system and cash deposit system/routine.
   
   NOTE: short ringing a register is when items are entered into a register and they show on the screen for the consumer but then the cash drawer is opened without hitting sale.  No receipt can be printed this way but this how a register is short rung. You will only see it these days typically with older cash register systems and where the owner is running his/her own store. 

For the Government

1. 1. Advantages - None that we are aware of.. That's why they'd like to get rid of it. 

   2. Disadvantages - Expensive to issue and manage. Subject to Counterfeiting.  Subject to Tax Evasion

For a Consumer 

1. Advantage - It's private. No one but you and the vendor knows a transaction transpired.

2. Disadvantages - Subject to loss if you lose it.  A target for mugging or robbery. 

If you re going to accept cash you need to have a system for keeping a cash bank, reconciling your cash sales, removing cash sales from the cash bank, replenishing the cash bank with proper denominations of coin and paper, and depositing money to the bank. 

If you have not been responsible for a cash bank before, as might be the case if you worked retail, it does require organization and thought. Once the systems are established they are easy to execute but they must be executed accurately and regularly.

ZAP Accounting Software offers a Cash Bank System.  We hope to have a summary of that here eventually with the worksheets here as well. Until then please uses that website. 

https://www.zap-accounting-software.com/bank-deposit-prep-wb.html