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How to manage your cash flow and get paid faster

How to manage your cash flow and get paid faster

As any business that started this year still chasing payments from 2018 will know, cash flow is critical to business growth and success. Without the regular payment of invoices, a business can come to a grinding halt as valuable time is wasted on chasing payments. Fortunately, it is possible to put processes in place that ensure you get paid faster using Xero online invoicing. As a Xero gold partner, we have a specialist team that can quickly get your online invoicing up and running and your payments flowing in.

Institute online invoicing

Online invoicing is both easy-to-use and makes it simpler for your customers to pay you on time. The advantage of online invoicing is that all your invoices live securely online and you simply send your customers a link to their respective invoices and they will receive their invoice(s) on the same day. Online invoicing is highly secure and Xero uses special encryption similar to that used by banks. This effectively eliminates fraud and your accounting team will immediately be able to tell if your customer has opened it.  Online invoicing also has a number of administrative benefits that can streamline your invoicing processing, saving valuable time:

  • Automatic scheduling: You can set up Xero to send out invoices automatically at specific dates and times.
  • Invoice any time, anywhere: You can send an invoice to a client in seconds while you are out on the road or even abroad.
  • View payment status: With online invoicing, you can see immediately which invoices have been paid on one dashboard, which shows an overview of the money that still needs to be paid to you.
  • Run reports: Online invoicing allows you to weed out the poor payers in your customer database. Detailed reports show which customers traditionally pay late, allowing you to adjust your payment terms accordingly.

Provide multiple ways to pay

The more ways you give your customer to pay you and the easier you make it for them, the higher the chances are that you will get paid on time. With Xero, you can add a payment service to your online invoice and your customer can pay it with just a few clicks. Once your customer has viewed their invoice online, all they have to do is click the ‘Pay Now’ button to securely use of the chosen payment options. You can even make payments simpler with Xero by adding trusted favourites like PayPal – allowing your customers to pay you on any device.

Send out automated reminders

Instead of getting an employee to sit on the phone all day and chase payments, you can schedule Xero to send out automated reminders for you. All you have to do is decide how often you what the reminders to be sent out.

Tips to ensure your cash flow stays healthy

Here are some quick tips to ensure you avoid late payments:

  • Make sure your invoices are accurate and descriptive, so your customers know exactly what they are paying for – avoiding valuable time being wasted on customer queries
  • Check your customer’s previous payment history with you before you take on more work
  • Check the credit rating of new customers, especially if you are taking on a large volume of work
  • Agree on payment terms and conditions in writing prior to supplying anything

Speed up your payments today

For expert advice on how you can integrate Xero’s cloud-based accounting services into your business and improve your cash flow, ask our expert Xero team for a consultation.

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