How to Use Xero To Improve Your Business Cash Flow

Managing cash flow well is the key to having a successful business. Xero is an online accounting software that allows you to manage all aspects of your business finances in one place. It also helps you keep track of your expenses so you can see where you're spending money.

Set up an automated invoice system.

You can set up an automatic invoicing system with Xero. This will allow you to send out invoices automatically when customers make purchases. You can even set up reminders to remind yourself to follow up with customers who haven't paid yet.

Create invoices from within Xero.

Once you've set up your account, you can start creating invoices. Simply click 'Create Invoice', select the customer and enter the details. Then click 'Send Invoice'. If you're using multiple currencies, you can choose the currency you want to invoice in at the top right hand corner.

Automate payments with Xero's API.

You can also automate payments by connecting Xero to other payment systems such as PayPal. This will allow you to send invoices automatically when customers make purchases through your website.

Manage customer accounts.

If you're using Xero to manage your company's finances, then you need to keep track of who has paid what and when. It's easy to do with Xero. Just set up an account profile for each customer. Then, whenever you receive money into your bank account, you can transfer funds to the appropriate customer's account.

We love Xero here at Cloud CA, it’s our recommended app when it comes to cloud accounting, we use it ourselves for all of our internal accounting. Xero provides an easy to use experience, which is so refreshing when compared to many legacy softwares that are not cloud based. When it comes to business cash flow, Xero makes it easy to see exactly how much cash you have in your bank accounts, how much money is expected to come in and how much money you need to pay out, all from the Xero dashboard. This helps you make better cash flow decisions in your business by being able to quickly and clearly see exactly what is happening with your ins and outs.

If you need help to improve your business cash flow with Xero or help with any other accounting, tax or business matters please get in touch here.