Are you struggling with cashflow? Are you worrying all month if you’re going to receive the money for work that has already been done - sometimes from up to 60 days ago! Some of our leading financial advisors are advising NZ to wake up and join the 21st century, it is time to change some basic invoicing procedures.
Xero Studies have shown that poor cash flow is to blame for 82% of businesses that fail. So the aim is to turn your receivables into cash as quickly as possible.
So, what can you do?
Due by dates
Payment by the 20th of the month following is not set in stone! Relieve some of the cash flow issues you are having by changing your due by date Yes, you will always have a few old school businesses or people that will ignore it, but if you only get 50% of your creditors paying within 7 or 14 days you are going to start relieving that pressure around the weekly or fortnightly wage dates.
Experts have said that you can increase your sales by up to 20% just by invoicing as soon as a job is finished!
I’m not sure what your memory is like but ask me what I had for lunch 2 weeks ago and I wouldn’t be able to tell you, can you remember every consumable you used on a job three weeks ago? Maybe you’re thinking that you’ve done this for years you know exactly what product you’ve used.... but why would you leave it to chance.
Online Invoice payment
You can get paid up to twice as fast by adding to your invoices the ‘pay now’ options.
Xero provides you with a quick and easy sign up to a variety of options. Fees are charged per transaction, but most of these surcharges can be on‐charged to your customers.
eInvoicing is the future of invoicing. It will save you time and money!
Think about it like a water tank, water comes in the top (revenue) and drains out the bottom (expenses).