Having the right tools to help you more effectively manage your cash flow has always been important, but never more so than in the last year with Covid and lockdowns. Cash flow is key!
So we wanted to share the number 1 way to improve your cash flow, and 3 tools that will help.
The number one way to improve the cash flow of your business is…..
Get paid on time!
Cash is often tied up in late payments and this can have a huge impact on cash flow. It is the number one reason that small businesses fail! Getting paid on time means you’re not only spending less of your valuable time chasing invoices (freeing up your time to work ON your business), but you’re also not having to deal with the problems and stress the lack of cash in your business creates.
So with that little nugget of gold in mind, here are 3 easy ways you can help ensure customers pay you on time…..
Xero Invoice Reminders
Here at Pulse we love Xero! And this is one of the many reasons why - Invoice Reminders. A helpful little tool that sends reminders to your customers when their invoice becomes overdue. You can word the email and even set the times for when they are to be sent - we would recommend after 1 day, after 5 days, and after 10 days because the longer an invoice is unpaid the harder it is to get the money. (Just be sure you keep your bank reconciliation up to date when using this tool, to avoid sending annoying reminders to customers who have already paid!)
Pay Now Button
Businesses who accept online invoice payments through Xero get paid faster. Adding a ‘Pay now’ button to your online invoices lets your customers pay you instantly, so you can save time chasing payments.
Offer Online Payment Methods
Xero’s API also means that you can give your customers many different ways to easily pay your invoices online. With Stripe, you can accept credit card, debit card, and Apple Pay payments, and through GoCardless (the software I use here at Pulse) you can automatically collect direct debit payments on the due date.
Make it as easy as possible for your customers to pay and they will!
Cash flow is vital for keeping your business alive, especially during uncertain times. It’s a real problem for many businesses and one that we’re committed to helping you manage. So if you want help with understanding or improving your business’s cashflow, get in touch!
