There’s no doubt that starting, growing, and running a small business is tough. Juggling a vast range of tasks, from HR to PR, can be an incredible drain, leaving you and your team grasping for time.
Whatever the size of your business, finances will always be a concern, no matter what industry you're in. Having the right systems and tools to ensure your processes run smoothly can be a huge help for any small business, removing a significant stress area that frees you up to focus on other priorities.
Cash flow management definitely doesn't have the glamour of product development or marketing, but it is a vital consideration for your business.
It might seem obvious, but making sure you get paid on time can be trickier than it looks, and late payments can have a serious effect on your entire business. If you’re new to the process, make sure you take steps such as sending email reminders, which can be an easy way to nudge without potentially damaging a business relationship.
Making sure that your business has the right technology to accept all kinds of digital payments is also vital, as not all of your suppliers or customers may operate the same way you do.
If you need some extra guidance, Xero has a wealth of experience helping businesses of all sizes accept and process payments. The company offers integrations with tools such as Chaser, which can set up automatic reminders to make sure deadlines aren’t missed, and allows for instant invoice settlement by connecting a payment provider.
Spotting upcoming trends and movements is also key for small businesses, and that goes for your cash flow too. Tracking not just where your money is going, but also where it is coming in from can be hugely useful, and predicting your inflows and outflows can help influence or inspire future work and growth.
Keeping track of your cash flow also helps to ensure you have enough funds to pay your bills, suppliers, and employees on time. As your business grows, you’ll doubtless have more spending to keep an eye on, so spotting any issues before they cause trouble can save a lot of hassle.
Xero offers a cash flow forecast template so that you can work out how much money you’ll have in the bank next week, next month, or even next year. There’s also an analytics function that will allow you to track a range of other metrics and make sure your financial health stays in top condition.
Xero is trusted by thousands of customers worldwide thanks to its range of products and services that can help you manage cash flow. This includes online invoicing, which lets users send their invoices directly from their PC or via the Xero app. Invoices can be customised with logos and other imagery to make sure they align with your business’ brand, and payments can be accepted instantly, meaning there's no hanging around.
Xero can also help with reporting. The platform allows for real-time collaboration with a Xero advisor, letting you spot any issues before they become a problem, and you can get up-to-date reports whenever you need. Reports can also be customised to clearly display the data you need, exactly how you need it, allowing for quick decision-making based on the very latest figures.
As one of the key players in the online finance space, Xero also has a range of services and resources to help businesses manage their cash flow.Xero’s cash flow support content hub provides a wealth of articles and guides covering a huge spread of topics, from managing your finances and creating a budget to small business bookkeeping for beginners. The role of bookkeepers can often be overlooked, but they can play a vital role in helping businesses deal with cash flow management, offering detailed reports, information and advice on what exactly is needed, or even what is missing to make sure you stay profitable.
Xero also produces a regular cash flow challenges report, giving the latest advice and understanding of early warning indicators of cash flow trouble, and there are also video guides for those who prefer their learning to be a bit more visual, as well as a free cash flow statement template to get you on the right track.
Keeping track of your cash flow is vital for any business, and you need a strong and reliable partner to make sure everything stays just how you need it. Xero offers not just an in-depth and comprehensive platform to keep your cash flow management on track, but also aims to answer the burning questions you may have, when you have them, hopefully putting you and your small business on the way to success.
