A gaps between firm’s actual and stated outcomes

A cashless society particularly benefits the poor as it
enhances financial inclusion, where individuals can consistently pay bills
without the use of a bank account. Consumers in developing countries are
financially marginalised as there’s a lack of affordable and adequate financial
services available to allow the poorest in society to access banking systems.
Digital services and mobile systems have made financial services more
accessible enhancing our banking systems and it will automatically help reduce
poverty in areas that do not fall in a banking network. In Somalia, 51 of out
every 100 have a mobile phone subscription (Rowley 2016). The country’s banking
system has nearly dissolved therefore Hormuud Telecommunication Company have
developed a money transfer system have allowed Somalians to up to $3000 a day
in the country, as for many citizens holding cash would them vulnerable. But in
the developing economy many heavily rely on cash as becoming cashless can crush
the costs and risks of holding cash, for instance, in the event of a natural
disasters can obliterate a large quantity of cash holdings. (Singletary 2012).

From a government viewpoint there are numerous benefit. The
government can impose full transparency in transaction which will decrease gaps
between firm’s actual and stated outcomes and incomes. Accounting systems will
become more accurate as transaction histories and figures are maintained with a
complete record of activity. It has been claimed that tax evasion strips up to
70% of a countries tax income (Farrell 2016) and cash is a severe implication
when evading tax. Going cashless increases money trails and digital footprints
creating difficulty when hiding money as it is easier to locate and catch tax
evaders, increasing tax revenue gained by the government. With a possibility of
tax revenue increase this could also offset a fall in income tax or national
debt being reduced. Calls for the eradication of cash have strengthened by
substantial evidence that high-value paper notes increase the scope and have
been prevalent in other illegal or fraudulent activities such as money
laundering, black money or undeclaring assets. The former chief of Standard
Chartered Peter Sands, claimed criminals move more than £1.4tn around the world
each year (Farrell, 2016).

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