Get Cash in the Bank Quicker
So you’ve done the work, you’ve sent your invoices out (via Xero of course) now how do you get the cash in the bank quicker?
I’m going to show you how you can do that, without spending a great deal of time, and without upsetting your customers or clients.
I’m going to assume you’ve done all the sensible things like getting your invoices out as soon as you’ve done the work, and followed the advice below:
Send your invoice as soon as you’ve done the work
Make sure you’ve agreed fees/prices and terms before doing the work
Make sure you’re sending your invoice to the right person
Send your invoice online (not in the post)
Add a “Pay Now” button to your invoices (more here)
So we have 2 great ways to get the cash in the bank quicker
Solution 1: Good old credit control
Credit control constitutes chasing your customers effectively to get them to pay. Everyone dreads doing it, and who has time for it anyway?
Well, although we would always advocate chasing customers for payment, we don’t suggest you spend any time doing it.
Chaser is an amazing Xero app that does all the chasing automagically for you! It sends reminders before the invoice is due (genius!) when the invoice is late, medium late and very late! What’s more we can help you to completely customise the whole process, so that your customers think it’s you doing the chasing.
Chaser has amazing results, but don’t take our word for it! Here’s Chaser’s blog on our lovely clients Signs and Labels‘ experience of moving to Chaser. When we started looking after Signs and Labels they were using desktop accounting software, and had £27k of old debtors. Things needed to change!
Step in Kinder Pocock, Xero and Chaser and 6 weeks later their £27k was down to £5k! They’ve been using Chaser now since June 2018, and absolutely love the difference that Chaser has made! The cash is in the bank quicker, and they’ve saved about 4 hours per week on admin.
Please get in touch if you’d like to know more about Chaser, and help in getting set up.
Solution 2: Get paid by Direct Debit
Apps like Chaser are amazingly effective, but what if I told you you could get your invoices paid on their due date, every time? True story, another favourite app of ours is GoCardless. When linked to Xero GoCardless does a number of cool things:
It sends a DD mandate out when it sees you’ve invoiced a new customer
It looks at Xero every day and collects payment based on the invoice due date
It deposits payments into your account within 4 days of collection
I know right?!
A Match Made in Heaven!
Chaser and GoCardless are both awesome solutions but what if you got them to talk to each other? Imagine your world:
Chaser sends a reminder to a customer
Customer clicks on the invoice
Customer clicks on the GoCardless “Pay Now” button
Customer pays this invoice via GoCardless and sets up a DD for next time
Chaser thanks customer for paying!
Genius! We absolutely love automations like this, and the icing on the cake is being able to share them with you. Our credit control and getting the cash in the bank now takes no time at all, and it will be the same for you too.
Thank you for reading! Please get in touch for more info on Chaser and GoCardless. And have a look at our GoCardless blog Why should I use GoCardless and how does it work with Xero?
Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.
We specialise in Security, Design and Indie Hospitality businesses.
Contact Us to see how we can help