Monthly Archives: July 2016

Let’s beat late payments together

late payments

One of the biggest rewards of small business is the freedom to be your own boss, however it often involves taking on uncomfortable tasks such as chasing up slow-moving debtors.  Late payments add financial and administrative pressures, damages business relationships and encourages business uncertainty.

Research shows small businesses are spending on average about 10% of their day chasing invoices, which equates to two days per month. That’s a lot of wasted time, and it can have a significant impact on cash flow. We’re taking action to raise awareness of the issue.  Here are some challenges faced by small business and some options you may wish to consider;

  • Getting invoices out on time when you’re busy
    This is a common problem. When your business is thriving and you’re busy working to make money, taking the time out to send invoices can be difficult. Consider using cloud accounting software to quickly prepare and send invoices.
  • Following up on overdue invoices
    This is related to the previous point – time is always at a premium in a busy small business. Again, cloud accounting software can help by automating reminders based on your settings.
  • Splitting payments across multiple invoices
    Account reconciliation can be tricky at times. Make sure your clients include your invoice numbers as references for every payment they make, to help you work out which invoices have been paid.
  • Invoicing quickly and accurately
    It’s important that your team communicates effectively with your finance manager or accountant, to ensure that work carried out is invoiced properly every time.
  • Ensuring that all completed work is invoiced
    Time-tracking software can be useful here, especially when there are several people working on each client account. Be sure to get this right, otherwise your business will be throwing away money by working for nothing.
  • Creating an invoice that doesn’t go to the bottom of the pile
    You can design your invoices so that they stand out, but what’s more helpful is to build up a good working relationship with your client’s accounts department. Don’t rely on a pretty invoice to get you paid.
 DCI_4591-websiteIf you would like to learn more about getting your invoices paid on time, maybe it’s time to consider Xero accounting software. Our Xero specialist Kade Tronson is here is answer your questions. Contact Kade on (03) 9744 7144 or email kade@mcmahonosborne.com.au
For a FREE 30 min consultation on how xero can benefit your business click on the link below to register
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Business owners – ask yourself these 6 questions

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  1. Is it important to know how much money you have in your business bank account?
  2. How long does it take to process your payroll?
  3. Over the course of the month how long do you spend doing your bank rec?
  4. Have you ever sent an invoice to someone that owes you money and they have turned around and said ‘I didn’t get the invoice?’
  5. Has your accountant or bookkeeper ever asked you to provide them with receipts, invoices or memorandums?
  6. How long does it take to process your super payments?

If you are asking yourself these questions, then maybe it’s time to find out more about Xero and how we can help.

Life can become a lot easier and less stressful for businesses with the help of cloud technology.  Many of the manual, paper-based business tools that you currently use can be replaced with online, cloud based tools that are accessible anywhere — at anytime on a smartphone or tablet.

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For more information on how Xero can work for you contact Kade on (03) 9744 7144 or email kade@mcmahonosborne.com.au

 

 

Click on the Xero logo below to learn more about the advantages of using Xero.
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