Introduction
Cash flow, often known as cash flow analysis, is the amount of cash or its equivalent that enters and leaves a business over time. Positive cash flow indicates that a firm has more liquid funds arriving in than leaving. It’s an indication of the company’s strong financial position.
In this blog, we would introduce why is it important to manage your cash flow and how you could do so with the help of cloud-based solutions like Xero and Chaser.
What you will learn:
1. What is Cash Flow Management?
2. What is Cash Flow Management Important to Your Business?
3. Best Way to Manage Your Cash Flow
4. How can Xero and Chaser Help With Your Cash Flow Management?
4.1 What is Xero?
4.2 What is Chaser?
4.3 How can Xero and Chaser Integration Help?
What is Cash Flow Management?
Cash flow management is the process of monitoring incoming and outgoing cash. This can help you forecast how much money your company will have in the future. It also aids in identifying how much cash is required to pay employees and suppliers, similar to a balance sheet.
Why is Cash Flow Management Important to Your Business?
Learn About
Your Spending
- Profit and loss statements may not give a clear indication of where your money is going
- Manage your operating cash flow management can help you better understand your spending and where you obtain a good return on investment
Maintain positive relationships
with vendors
- Avoid late payments causing chargebacks, surcharges, and interest and maintain your business connections
- Keeping your vendors on good terms
- Critical for maintaining a positive business reputation
Best Ways To Manage Your Cash Flow
After understanding how important cash flow management is important to your business, here, we list five ways how you could manage your cash flow:
Keep Track of
Your Accounts
- Your operating cash flow is only as strong as your accounting and reporting
- Make sure your accounting data is maintained on a regular basis
- See how your company’s finances are progressing
Don’t Be Too Friendly to
Your Consumers
- Be firm and fair without being a pushover.
- Don’t be afraid to take more forceful measures if necessary
- Keep an eye on your accounts receivable turnover & scale up your efforts in collecting payments when it goes up
Simplified Your
Accounting
- Hire a professional accountant to avoid wasting time
- Use high-quality accounting software hk to keep track of your finances and forecast for planning purposes
- Easier to monitor & report on key business metrics e.g. operating margins and inventory turnover, and attain credit control
Keep Business &
Personal Finances Distinct
- Keep business and personal money separate allow you to know your company’s revenue
- Enable to calculate accurate free cash flow and prepare for budgets
- Plan to use the extra cash to develop and expand your business
Create a
Cash Reserve
- Ensure that you have adequate funds to operate your business
- Protect you from ups and downs of the economy & whims of banks and other lenders
- Enable you to take advantage of situations when they arise
- Provides you with the self-assurance and financing you need to expand your business
Use Cloud-Based
Solutions
- Cloud solutions, e.g. Xero and Chaser, offer your business flexibility and scalability to better manage operating cash flow
- Enhance controls over cash speed up processes surrounding the transfer of money
- Obtain deeper insight into their cash position
How can Xero And Chaser Help With Your Cash Flow Management?
Before digging into how accounting software hk like Xero and Chaser can help with your cash flow management, we would first introduce what is Xero and chaser:
What Is Xero?
Xero is a cloud-based accounting software that helps small companies and startups manage their finances, and is used by over 1 million firms across the world.
Xero’s main features include ease of use, security features, and the ability to connect with other company applications. Businesses may also try out Xero hk for free using a free trial.
Here are some of Xero’s key features:
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What Is Chaser?
Chaser is an accounting software that automatically searches for outstanding invoices in over 90 countries. Chaser connects with a company’s accounting software, e.g. Xero, to access information about its customers and payment transactions
Chaser automatically sends polite, personalized payment follow-ups via both email and SMS at the intervals you choose based on your payment and client data. Every communication with Chaser is individualized, so your payment reminders appear to be handwritten, not programmed.
Users can utilize Chaser’s two-way integration with Xero to ensure they’re working with the most up-to-date information and never chase a payment that’s already been made.
How can Xero And Chaser Help?
Chase integrates with Xero to allow customers to manage their account receivables in an easy and convenient way. This allows you to automatically send reminders to your clients about overdue invoices without dehumanizing the relationship. This helps you save time while still ensuring strong customer relationships.
Chaser and Xero hk integration has 4 major characteristics:
- Invoicing Reminders: You may create automated email and SMS payment reminders to pursue unpaid accounts
- Payment Portal: You can create a payment portal for your consumers that is convenient for them to use. You may take credit card or Stripe payments from your customers online
- Credit Control and Checking: Check your credit report and keep an eye on your potential and new customers’ financial and business data using Chaser to minimize your credit risk
- Payment Tracking: You may follow transactions made by your clients and see which invoices have been paid
How can FastLane Help?
FastLane combines innovation and technology to provide professional services with a particular focus on entrepreneurs, start-ups, fast-growing technology companies and SMEs with a team of well-experienced and qualified accountants and auditors to ensure that companies comply with the Hong Kong regulatory requirements.
We started our journey with Xero hk in 2013. Being a Xero Platinum partner, we are confident in handling all your inquiries and guide you through the benefits of Xero and transforming how you do your bookkeeping, run your credit control and even pay your employees
Don’t hesitate to contact us or visit Xero’s website (www.xero.com) to explore how Xero can benefit your business!
We started our journey with Xero hk in 2013. Being a Xero Platinum partner, we are confident in handling all your inquiries and guide you through the benefits of Xero and transforming how you do your bookkeeping, run your credit control and even pay your employees
Don’t hesitate to contact us or visit Xero’s website (www.xero.com) to explore how Xero can benefit your business!