We know that managing your business cash flow can be a challenge, but with Xero, it doesn’t have to be! Keeping your cash flow up to date can help you plan your budget, predict future income, and make informed decisions about your spending and investments. Here are four tasks to help you do just that:
Connect your accounts
Make sure you’ve added all your business accounts to Xero, including your bank accounts, business credit cards, and loan accounts. By doing so, you can keep track of all your business’s transactions in one place. We also recommend setting up direct bank feeds so that your transactions are automatically imported into Xero.
Frequently reconciling transactions from your business against the bank statement lines is important to ensure the accuracy of your business transactions. This helps make sure that the information used by reports and business performance tools are correct and up-to-date.
Manage your expenses
Managing your expenses is important to maintain an accurate representation of your business outgoings. Make sure to correctly account for business expenses that you’ve paid for personally or personal expenses that have been paid for from business accounts.
Add payment dates
Adding expected payment dates when an invoice (accounts receivable) won’t be paid by the due date can help you have a more accurate record of when money is likely to come into your accounts. This in turn will help to ensure the graphs in your cash flow report and business dashboard are as accurate as possible.
Adding expected payment date
At MKG Partners, we’re committed to helping your business thrive. If you need further assistance with managing your cash flow in Xero or have any other accounting questions, don’t hesitate to contact us. We’re always here to help!