I say it's good... but one very important downfall -- it's hard to track with no paper trail. If you have a business, and plan for it to grow... you really need something to track for business analysis, etc. Cash is okay... if you want the additional overhead of depositing everything at once, and documenting who gave it to you, etc etc. People have a bad habit (myself included) of taking the cash... then inadvertantly spending it, thinking... well, I can transfer my money in my personal account into the business, and everything will be fine.... then procrastination and forgetfullness sets it. Unless you are freelancing... then this comment is worthless. haha
We've set up an internet banking account. Out of town (or country) clients can deposit money to our account from their own bank. There are some fees at both ends but if the client is in a rush to get started and you don't want to start until you see some $$, this can work well.
Cash is always nice. The only problem is that if you do a significant cash business involving relatively large amounts, you invite scrutiny from the taxman. Even if you aren't evading taxes, they tend to look at cash deals as suspect.