10 Tips to Improve your Cash Flow with Xero

Cash is critical to the survival of a business and Xero can be used to help track it. Effective there is that flows into the business, so the business has the money to pay the overhead, such as rent, salaries and securities. Here are ten tips to make sure that Xero is effectively using cash […]
cash flow, bank

Cash is critical to the survival of a business and Xero can be used to help track it. Effective there is that flows into the business, so the business has the money to pay the overhead, such as rent, salaries and securities. Here are ten tips to make sure that Xero is effectively using cash to flow into business bank accounts.

Xero is a cloud accounting software company for small businesses based in New Zealand. In recent years, it has grown exponentially to become the provider of a software tool trusted by more than 1.2 million subscribers worldwide. Last year, he made transactions worth 1.4 trillion dollars. It keeps evolving and revolutionising the way bookkeeping is carried out daily in businesses not only in Australia bur all across the world as well.

You can contact us right now, here at AQ Bookkeeping you will enjoy professional back reconciliation services at an excellent price. Call us now!

  1. Reconciling bank accounts regularly

To ensure dashboards and reports. Xero is correct and up-to-date, they make a habit of reconciling bank accounts to often. With timely information, you can be sure that the reports of the pending invoices are correct and able to communicate with customers promptly. The alternative is waiting to check the receipts of all money that goes into the business before you start chasing the customer for payment.

  1. Keep up-to-date on expected cash flowing in the business

On the Xero house board is the bills owed to you board, which summarizes the information of the current accounts receivable and includes a chart. You can click quickly through determining the value of outstanding invoices, current invoices and projects, and drill down to see the details on the sales dashboard. Once in the sales dashboard you can click on the box in the launch column and add notes and update the expected date of the invoice.

  1. Customize invoices Xero

Xero invoices must be customised to include your bank details and payment terms. This makes it easy for customers to pay you. The details of your payment gateway can also be added to the invoice through the subject of the brand of the invoice. Print a copy of your invoice and visually verify that it is easy for clients to establish how they should lend the business.

  1. Send invoices Xero promptly

Invoices can be sent by email from the Xero Sales area (or any mobile device), which saves you the cost of a stamp and the time of allocation of invoice dates in the usual accounts processing by Pay often a couple of days if the message box had been used.

When sending an invoice through Xero you have the option to send it in PDF format through the Xero network, and as an online link. A client can download the PDF, cut a tree, print it, and deposit it – boo! Or they can save the PDF file on their computer, ensuring they have a regular back-up system in place.

If you are a cool Xero-ultra-user like you, you can minimize the data entry by connecting to the Xero system and receiving it directly in your accounts as Bill. The client can click on a hyperlink, it generates automatically on the invoice sent to them, and see the invoice online. When they click on the green brand link against the invoice in your Sales Dashboard it darkens so you know what they have seen. Delicious, huh?

  1. Commit to mobile technology

Install the Xero application on your iPhone and embrace the billing cloud while on the road. The faster the invoice is issued, the faster it has been paid and the faster money is the receipt by the bank.

  1. Send Xero statements at the end of the month

With just a few clicks through the Xero dashboard sales, activity and pending statements that summarise customer invoices can be easily sent to customers who have outstanding balances.

  1. Check Your Eligible Report

The Elderly Eligible Report can be found on the Xero’s dashboard reports and lists all accounts receivable by the customer and by month. You can click on the data to discover more details about the invoice and the customer.

  1. Review the Cash Position report.

Within the Xero Executive Summary report, you can access a Cash Position report. The first block of information in this report is a simple overview of the cash situation of the company: Cash received, Cash passed, Cash Surplus (deficit) and closing of the Bank’s balance sheet.

Positive variations are highlighted green and negative variations are highlighted in red. This is a high-level description of the cash position of the company, and may cause you to delve into details if necessary.

  1. The Cash Position report

Also, helps you understand the details behind the company’s net cash movement. By staying informed of the cash movements of your business, you are in a better position to make proactive decisions, such as delaying spending if the cash flow is slow.

You also need to have an eye on the total input and output graphic bar chart on the house dashboard, which highlights the last six months of cash movements.

  1. Enjoy the collaborative nature of the cloud

Give a team member or virtual consultant access to your Xero file and can track pending invoices and customer update records remotely. Invest in an add-on solution to collect the debt Do not let clients treat you like a bank. Invest in a debt tracking Xero add-on solutions such as Debtor Dad, Satago, Chaser or Late Fee Manager.

These offer a variety of features, including courtesy reminders before an invoice is due, automatic e-mail reminders following late payments, and the ability to send text messages, late fees, service charges or interest charges apply.

AQ Bookkeeping is a business that offers excellent services at an affordable price for all businesses needing back reconciliation services to recover total control of their business and knowing where the business is heading.