Here are some ways that you can use Xero to get paid faster and turn more invoices into cash.
1. Invoice immediately
Xero have a mobile accounting app that you can use to invoice immediately after a job is completed. This allows you to send or approve invoices without being in the office or do them in between jobs.
2. Use online invoicing
Using online invoicing it means they receive it immediately and can pay instantly through a “ pay now” button right on the invoice. It’s more cost effective without having to pay for postage, stationery and printing cost and the inconvenience of having to go to a post box.
3. Use the reporting system to follow up late invoices
You can track your outstanding invoices by using the Aged Receivables Report and note what customer has the biggest outstanding invoices and who has the oldest outstanding invoices. With this information you can then telephone the client and request payment. I believe that every business should have a process that the client is called a day after their payment is due if they haven’t paid and if they constantly have to be followed up, call them after you have emailed your invoice to see that they have received it and then they will know in future that you will be on the telephone each time if they are over a day late with their payments.
4. Hire a bookkeeper to clear up outstanding debts
Your bookkeeper can develop a process to ensure that your client’s outstanding debts are kept to a minimum and invoices are sent on a frequent basis and followed up in a timely manner. Initially there will be some costs but with a reduction in your debtors it will prove to be a worthwhile investment.
For more advice on how to maximise your cash flow with Xero call Jaleana Gray a BAS Agent and Xero Partner from Bookkeeping Fairy Perth on 0400 102 358
Check out website www.bookeepingfairyperth.com.au