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Help your clients forecast and optimise cash flow with our new app playbook

Posted 8 months ago in Apps by David Parker
Posted by David Parker

Healthy cash flow is vital for the success of any business. No matter how popular an operation is, if it can’t pay its suppliers or staff on time, or if it’s taking on too much short-term debt to make up for shortfalls, it risks failure.

As an advisor, you can help your clients improve their cash flow health by recommending and using the right mix of technology. We know it’s already top of mind for many of you. According to Xero’s research*, 57% of practices have cash flow and business planning advisory as their number one priority. And it’s not hard to see why. Our research also shows that, as of July 2018, just over half of businesses were cash flow positive, which leaves a lot of businesses needing help to get their cash flow on track in order to reach their goals.

That’s why we’ve just released our new cash flow app playbook. It covers the three key areas of cash flow app advisory and the corresponding technology stacks, so you can help your clients get their cash flow on track.  

It’s simple to get started

Regardless of the industry or size of your client’s business, our cash flow playbook will show you the steps to follow to successfully implement cash flow advisory. It will take you through a range of questions to help you identify the specific areas your clients need help for their unique situation. Then it shows you where to place your attention to enable your clients to reach their cash flow goals.

And the best thing – it’s not complicated. Just a few small changes can make a huge difference to your client’s cash flow. For example, if your client needs a more efficient accounts receivables process, simply implementing an electronic payment service could dramatically improve how quickly they get paid. Our research shows clients using PayPal or Stripe get paid anywhere between 10 and 20 days faster by using these services.**

It all starts with getting the right data into Xero

The first focus area in the playbook is about ensuring your client’s business is as efficient as possible, by making the most of automation. With the right Xero plan and apps, full and accurate data is available in Xero, without time-consuming data entry.

Because bills and day-to-day expenses have such a significant impact on cash flow, having this information up-to-date is critical to efficient cash flow advisory. And this can also be automated with the right technology. When it is, less time is needed collating and submitting bills and expenses. It will also give your client a baseline of data to better understand cash flow going forward and provide a critical foundation for cash flow forecasting.

To find the the right apps to help your clients improve efficiency through automation, plus learn more about the other key focus areas for effective cash flow advisory (including cash flow forecasting), download our cash flow playbook and get started today.

Check out the other resources in Xero’s app playbook series, to learn how to bring the fundamentals of app advisory into your practice and recommend apps for our three biggest industries: trade and construction, retail and ecommerce, and professional services.

*UK 2018 Special Report, Compliance and advisory services: Industry and Pacesetter insights, n = 440

* *Average improvement for Xero users who had either PayPal and/or Stripe enabled as their payment provider between 1 July 2016 and 31 January 2018. This information is general in nature. Average invoice payment times may vary for each business using the service. Standard merchant fees apply.

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