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Reduce your Cash Flow pain by getting Invoices paid quickly
Think of the amount of time you spend on collecting your invoices. What a waste of productive time!
You have provided your client with work timeously so why should you wait for payment beyond your agreed terms?
Below are some tips that will help you collect your invoices quickly.
- Agree on the value of the invoice and the payment terms with your customer before you commence the work. This will prevent your customer from making excuses for not paying the correct amount or not paying on time.
- Email your invoices to the customer. Gone are the days when you need to put invoices in an envelope and use snail mail. With Xero you can create the invoice and simply email it directly to your client. You will also know when they have opened it, as a mark appears in Xero against this invoice when they do.
- Record the Invoice due date correctly according to the industry that you are in. If the standard terms in your industry are 14 days, then do not allow longer terms. Your due date can be set within Xero when creating the invoice automatically as a default which you can adjust per invoice should you need to.
- Invoice immediately after finishing the work at the latest or whenever monies are due during a project, for example a deposit at the start of a project. Create draft invoices at the commencement of a job and adjust this as need be during the life of the project as soon as portions of work are completed. Once the work is completed this draft invoice can be converted into an actual invoice with a simple push of a button.
Should you wish to improve your cash flow, please give Neil a call for a free consultation.
Which way does your Cash Flow?
Cash flow is the movement of money IN and OUT of your business just like the oxygen you breath.
It is critical to the health and survival of your business that your Cash IN exceeds your Cash OUT. Unfortunately for most businesses this is not the case as evidenced by the report issued by the Australian Securities Commission in 2015. It reported that the most common cause of business failure was cash flow problems which made up 44 percent of the reasons for all small business closures.
This is good for the business owner to know however, it is like a doctor saying that “The patent died because they stopped breathing”.
What exactly were the causes of the cash flow problem in the first place? This is the key question that the business owner needs to be able to answer. Unfortunately many business owners do not know what these reasons are. All they do know is the pain they feel when suppliers request payment.
This is where specialist help is needed. Accolade Accounting provides just that, with many years experience in dealing with these cash flow issues within small businesses.
Relieve the cash flow pain today, by giving us a call on 0421 824 1375 and setting up a free meeting to get your cash flowing in the right direction.
Why Do You Need a Small Business Accountant?
A lot of people wonder whether they should hire a small business accountant in Perth. It should be noted that Accountants tend to play an important role in many stages of business-oriented growth. They do much more than managing tax returns and payroll. If you want to kick start into a new business venture, there are several reasons to hire an accountant.
According to experienced business owners, there are many reasons to invest in a good accountant at different stages of your venture. From legal structures to budgeting, accountants can remove a massive burden from your shoulders. They will make sure you operate with the right principles at all times. This does not mean every business requires a full time accountant. Instead, a couple of fruitful hours with an accountant can do wonders.
Using Money Wisely
Some business owners avoid an accountant due to stringent budget constraints. Nonetheless, a skilled accountant can help you save more. Hiring a small business accountant will always be cheaper than the mistakes that can be made from not having professional advice. With a professional around, you will have the peace of mind that everything important and crucial is taken care.
Using Expertise
Novice business owners with very little expertise in the field will require a small business accountant in Perth to write business plans. Experts believe that business planning is more-or-less an art. To own a successful business, your plans should be professional, realistic and achievable. By hiring a professional who knows how to plan at an earlier stage, you will have the luxury of getting top-notch financial management advice from the very beginning. Once again, this will help you save more money and time.
Handle Money Like a “Pro”
Of course, all businesses require an accountant to take care of their finances. Small business finances can become a big challenge in no time. In fact, novice business owners are likely to lose track of funds easily. The right an accountant will push you forward and set you on track.
One of these accountants is Accolade Accounting, so give us a call on (08) 6263 4466 to make an appointment with the principal Neil Kagan today.
No business owner wants Zero cash flow but every business owner wants Xero cash flow
Hello from Accolade Accounting, the small business accounting experts in Perth and also the experts in working with Xero.
Let’s continue to look at another fantastic feature of Xero that provides additional efficiency to the accounting and small business world.
In the times of BC X (Before Cloud Xero), it was very difficult for the business owner to compile an accurate cash flow in real time. There was just so much information to take into account and to consolidate all of this was a nightmare and to do this on a regular basis was almost impossible.
Now AC X( After Cloud Xero) this has all changed. Xero has so many reports that enable easy consolidation of critical cash flow aspects of a small business that all business owners now have the ability to work with very accurate cash flow information and organise this in very little time.
Cash flow is the oxygen of a business, and with Xero it has now become possible to have additional oxygen tanks connected to every small business.
Accolade Accounting are the small business cash flow experts in Perth so give us a call on 0421 824 137 to get your cash flow up to speed.
Until next time… Keep Xeroing