How Are Entrepreneurs Lowering Internal Cash Payments at their Startups
Grow Your Business, Not Your Inbox
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Demonetization has come with its own share of joy and sorrows. For the common man, one can today see serpentine queues outside every single ATM in the city. The commoner, clueless about several modes of online transactions, are today cash starved and feels helpless.
On Entrepreneur India realizes that all this while several startups were in the process of carrying out minor transactions using cash. From paying for their morning tea, to paying for regular miscellaneous items such as stationery, intercity travel, etc. were made using cash.
However, our entrepreneurs have pioneered the concept of fintech. They have risen to the situation and understood the dire need to cut down on cash transactions. Hence today, we have entrepreneurs who have come up with constructive ideas and are fighting the situation the right way!
Outsourcing third party expenses
"Our cash transactions are around 20-30% out of the total monetary expenses, and these mostly relate to the work outsourced to small third party vendors. Now we have outsourced all of these third party expenses to the various prominent service providers online and pay them by debit/credit card itself" Pankaj Bansal, Founder and CEO at Newspatrolling.com
Online cab aggregators for employee travel
“Other than some administrative minor transactions and occasional celebrations within the office there haven't been any constraints. Even for our employees, any transportation necessity is looped in with a solution due to card based transactions with taxi aggregators. So, safe to say, demonetization or not, our services are modelled in a way where the work is not affected,” Sonia Sharma, Managing Director and Co Founder, GoodWorkLabs.
UPI wallets to the rescue
Amongst our customers and employees at niki.ai, we see an increase in transactions happening through UPI, Wallets and Credit Cards. UPI is proving to be a really convenient way to transfer money directly to bank accounts without having to add beneficiaries and wait for the approval,” Sachin Jaiswal, CEO & Co-Founder, Niki.ai.
Business expense management app
"We at Fella Homes manage our both internal and external finance through official channels of banking or other business expense management solutions such as Happay. It helps us to streamline our expense workflow from expense reporting to reconciliation and gives us a real-time visibility and financial control over our business spends,” Digendra Singh Rathore, Co-Founder and CEO, Fella Homes
While larger corporate houses have a more structured finance department in place, entrepreneurs have also aced this situation within their limitations and utilizing technology solutions effectively.