Xero Trifecta Part 3: Boost Cash
“Cash is king” is an expression that has been around for a long time. It has been adopted in the corporate world as a way of emphasising the need for businesses to have a healthy cash flow in order to function.
What the phrase doesn’t tell you, is that whilst cash is king, unfortunately not all the people in the kingdom respect its authority.
The reality is that you want a nice consistent flow of cash through your business, but you’re spending most of your time chasing overdue invoices, and trying not to jeopardise customer relationships by unleashing your increasing frustration.
It’s probably not an exaggeration to say that:
- You hate having to chase people for money
- There are lots of other things you’d love to do with the time you spend trying to reduce your debtor days
Sometimes though, it can be make you nervous to relinquish control of invoice chasing to someone else. It’s scary, we get it! You know your relationship with the client. You know that the whilst one client just needs a gentle friendly nudge, others need more direct and regular communication – and you don’t want someone else to come in and confuse the two.
You may even have taken baby steps by appointing a credit control person in the business – but that person’s time is often stretched thin, and you’re still having to jump in and deal with the ‘problem clients’ or call the clients you have a close personal relationship with. Does it ever feel like it’s fully out of your hands?
Boosting cash is a part of our trifecta because it’s true, cash is king – and when the king isn’t around to rule, the kingdom crumbles. Cash flow problems can cause late payments on bills and expenses, difficulty paying staff, limited opportunities for funding.
The Xero Trifecta gives you the tools to boost cash, save time, and get back control of your business – and credit control automation is one of those highly effective tools.
With the Xero Trifecta you can:
Get paid faster…
We find that clients who fully automate their credit control process see an average of 26 days reduction on their debtor days.
You get paid faster, meaning your expenses get paid faster, and you don’t need to spend sleepless nights panicking about where the money is coming from. Instead you can dream about how you’re going to invest your cash into new business opportunities.
… But keep it personal
Automation doesn’t mean that you have to lose control of those personal relationships you’ve built up. If you want to, you can write a different template email for each and every client, tailored to the way you communicate with them.
You can decide the days you’ll chase and how often, and it can all be signed off by you. Spend time setting all of that up at the beginning, to save yourself hours of time every week.
Do less of what you hate….
And more of what you love! With a smooth automated system, you could relinquish all responsibility of credit control to someone else in your business. Ask yourself this: if you had three more hours to spend on your business every day, what would you be doing instead of chasing payments?
Find out how saving time on the things you don’t like doing in your business can increase productivity, by reading more about the power of the Xero Trifecta here: