As we recently touched upon in this blog post, cash flow is very important.
The short and long-term success of your business hinges on a steady stream of cash flowing into the coffers, allowing you to pay salaries, settle debts, and invest in equipment and infrastructure.
But even the most seasoned of entrepreneurs need a helping hand when it comes managing cash flow – and Xero, the world’s leading cloud accounting platform, offers just that.
In this brief blog post, we explain how.
Two Important Cash Flow Functions
Xero boasts a whole host of impressive features, giving you access to a real-time view of your business finances, incredibly detailed dashboards, and an impressive reporting suite. However, where cash flow is concerned, Xero also has two very crucial functions that we use to help our clients:
Firstly, being able to accurately prepare budgets allows you to forecast and monitor profitability, which in turn can generate a positive cash flow. And by using Xero, you can track your spending, maintain a budget, reinvest in the business, and move to act if you spot a potential gap in funding.
Xero – and its array of third party apps – makes budgeting simple. But perhaps more importantly, it’s the invoicing feature that has the greater potential for improving your cash flow.
Why? It can help you get paid faster.
One of the biggest obstacles to a healthy cash flow position is delayed and late payments. The money you’re owed should be working for your business, not resting in your customer’s account. Yet many small business owners are scrambling through every working day worrying about when the next chunky receipt from their customers will land. That’s where Xero comes into its own. The invoicing capabilities allow you to effectively manage the entire process from start to finish, including sending timely reminders to encourage slow payers to pay up.
In fact, those reminders can be a game changer for small business owners juggling multiple responsibilities. They allow you to automatically send customers an email prompt about their invoice, and these can be configured to send before or after the invoice becomes due. You also have the option to customise the message. It couldn’t be easier!
Cash Flow, Sorted
As part of our Super 6 services, we can help you manage your cash flow situation better with Xero.
We’ll get you set up on the platform, pinpoint areas for improvement, help you get paid faster, and ultimately improve your cash flow.
Speak with one of our friendly Xero experts to find out more. Contact us today