There are few things more important in the world of business than understanding how your cash flow system works. Conducting a cash flow forecast can help you get a clear insight into the heart of your business, so that you can determine the health of your company in the upcoming weeks and months. Once you become effective at managing cash flow, you’ll have the flexibility you need to manage upcoming challenges, and take advantages of new opportunities.
While cash flow can be a complicated subject, it can become easier to manage with the help of an expert bookkeeper, and some efficient accounting software. The latest update to Xero accounting software is an invoice reminders app, which allows businesses to track what they are owed. Being able to track exactly how much you are owed, and who owes you money, can make improving your cash flow simpler than ever.
How Invoice Reminders Help
How often do you struggle to keep track of which customers have already sent payment, and which of them are lagging behind? For most business owners, chasing down payment is by far one of the most frustrating parts of running a successful company – however it’s essential if you want to maintain those all-important profits. Systems like the Xero invoice reminders app removes some of the hard work from managing business operations, by allowing for the automatic issue of reminders to customers who don’t pay for goods and services immediately.
Because the app can be designed from your dashboard, with a couple of clicks you should be able separate paid, and unpaid invoices, for a comprehensive list of clients with outstanding charges. Using that information, you can set up a system for automatically sending email reminders to clients, that are issued days before the payment is due, as well as on the due date itself.
The simplicity of the app means that you can be instantly notified when you are paid, so that invoices can be quickly updated and cash flow can be more effectively managed using accurate information. From there, you gain access to more time in which you can focus on positive ways to increase cash flow within the company, without having to worry about the constant stress of chasing down payments.
Using Invoice Reminders
Using invoice reminders, business owners can even send automated emails to clients whose invoices are overdue. From the app dashboard, you can specify the timescale for sending reminders, the cash amounts, and even which clients you might want to exclude.
While it might not be the most exciting part of running a business, getting your invoices right and ensuring that you receive payment on time is a crucial part of promoting good cash flow in your company. After all, constantly missed payments could indicate an untrustworthy client, and late payments could mean that you struggle to pay suppliers for materials that are crucial to the ongoing growth of your business.
Follow Up On Payment
The longer an account remains overdue, the more likely it is that you will struggle to get paid. That’s why it is so important to chase up accounts the moment that invoices start to move closer to the due date. You can start by sending a polite email reminder, then follow up with an email that outlines the potential measures you might have to take if payment is not given at the appropriate time. The clever solutions offered by Xero allows you to avoid some of the discomfort involved with tracking down and pursuing unpaid invoices yourself, so you can focus on other aspects of your business that might require attention.
Once you’ve established who pays on time, and who constantly needs to be sent reminders, you might think about changing your payment terms for those people, or offering incentives for prompt payments that might encourage quicker invoice management.
Your friendly bookkeeper’s at Bright Cloud Bookkeeping also offer this service. Get in touch today to find out more. firstname.lastname@example.org.
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