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4 Quick Tricks to Improve Your Business' Cash Flow and Stop Wasting Money

4 Quick Tricks to Improve Your Business' Cash Flow and Stop Wasting Money
"""FIRST MISTAKE: FAILURE TO LINK YOUR BANK TO XERO

Why?

Instead of employing real-time, up-to-date information, you risk missing a customer's payment or, worse still, failing to detect if they don't pay, which could lead to financial difficulties.

Steps to take:

Imagine logging into a daily app that has downloaded your online banking system's bank transactions. This allows you to instantly match bank deposits and withdrawals with client invoices and any supplier payments due, such as hosting fees or payments to contractors or other suppliers. With Xero Touch, which is compatible with iOS and Android devices and offers a real-time hand-held update on your company's finances, you may be located anywhere in the world and never be caught off guard.

MISTAKE 2: FAILING TO CHARGE YOUR CUSTOMERS PROMPTLY

Why?

Nothing is worse than finishing the work, being distracted with the subsequent project, and failing to bill for the initial job. Adding new employment to this could lead to cash flow problems, but far too frequently, we find that people are simply too busy with their current tasks to take action.

Steps to take:

1) When deciding on the initial price for one-off tasks, establish a quote on Xero that you can instantly convert into an invoice once the work is complete; and

2) Create a repeating invoice on Xero for retainer work or recurring subscription income so that the invoice is issued each month until you instruct it to stop. For instance, when we are sleeping on the first of every month, our invoices are sent out!

MISTAKE #3: FAILING TO SEND INVOICES TO THE APPROPRIATE PERSON

Why?

This won't be a major deal if your clients are small enterprises because they will probably also be paying your bills. However, imagine that you are dealing with much larger businesses that have numerous locations, departments, and bureaucracy-crazy processes. The invoice won't be paid when you need it if you don't send it to the appropriate person and department.

Steps to take:

Find out the specifics of how the invoice will be paid when the fee has been agreed upon with your contact, including whether the invoice requires a reference for their system (such as a purchase order) and the information regarding who the invoice should be emailed to (never post an invoice when it can be emailed!). Then, send an email with the Xero invoice and all backup documents attached to your contact and the payments department.

FAILURE #4: Making It Difficult to Pay the Invoice Why?

Like you, your consumers are a busy person. What would you do if you got an invoice that didn't have bank information on it? You would unknowingly put off doing anything by saying, ""I must check up on that,"" but never follow through since a million other things would come up.

Steps to take:

You may now include a """"pay now"""" link on your invoice using Xero. The receiver can therefore see the backup of the invoice when they receive the email (see Mistake 3 - never issue an email other than through email) and a very helpful button that enables them to physically pay with a few clicks. Imagine getting paid an hour or so after sending the invoice! To give customers as many options as possible, we advise setting up accounts with GoCardless for bank transfers and PayPal or Stripe for credit card payments."""
 

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"4 Quick Tricks to Improve Your Business' Cash Flow and Stop Wasting Money" was written by Mary under the Business category. It has been read 36 times and generated 0 comments. The article was created on and updated on 16 November 2022.
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