The economic problems we are facing are not going away. But we have the answer, and it’s something businesses seem to be overlooking. In our professional opinion, using Xero is the best way to stay in control of your business’ cash flow.
Ever since the Chancellor Rishi Sunak extended the furlough scheme to March, we’ve all been aware at how severe the situation is. That showed us quite clearly that we are not coming out of any form of lockdown any time soon.
With the realisation that we have at least four more months ahead of us – and then the possibility of some form of restrictions remaining in place after that. Business must truly start to get to grips with their cash flow and start using more than guess work to predict the future position.
Can Xero Help my Business with Cash Flow?
Cash flow is the life blood of the business, it cannot live without it and you can only run out of it once.
CJM Accountants, along with our sister Accountancy Company Parris & McNally, are Xero partners. Using a high-quality cloud accounting software is the first step in truly getting to know your cash flow.
The ability to have live bank feeds which show you the actual financial position of the business is crucial to maintaining a good cash flow management system.
Secondly, Xero will provide you with the ability to invoice quicker, manage those who owe you money and those who you owe money to. Professional reporting at the touch of a button allows you to undertake weekly and monthly analysis of your business.
Immediate reporting of your profit and loss account is available with Xero, allowing you to see what your true profitability is.
However, even Xero only provides what the position is today.
What is Fluidly from Xero?
What you need to be looking at the position for the next 12 months. Xero has led the cloud accountancy world in applications. One of these is called Fluidly. Fluidly connects with your live Xero feed and uses learned Artificial Intelligence to predict your cash flow for the next twelve months.
Fluidly then allows you to change and alter many of the parameters in the business from when invoices are paid through to additional staffing, to changing payment dates on expenses invoices.
This provides you with continuous forecasting which is invaluable in this current climate.
To make decisions you need information. Xero provides the data, Fluidly provides the information to help you see into the future.
To release the knowledge you have and translate that into evidence-based forecasts, contact firstname.lastname@example.org .