Strong cash flow is the lifeblood of any business. In 2020, it’s never been more important to manage what’s coming in and perhaps more importantly, what’s going out. Xero Small Business Insights found that in August 2020, small business revenues were 12.6% lower than a year ago. This means managing cash flow is a huge challenge.
There are some things you can do to better support cash flow management. A good place to start is to look at how you are processing and paying supplier bills.
Historically, paying bills has been complicated
Recent research commissioned by Xero found that rather than taking advantage of tools which streamline business performance, many businesses learn to manage their bills through trial and error. So eventually, they find a process that works for them. This means many businesses are spending a staggering 4.8 hours per month managing bills. Additional frustrations include, entering bills and payment information into payment systems, not being able to manage and pay bills all in one place and having to use multiple systems that lack integration.
It’s easy to see why paying suppliers is so frustrating. Managing and paying bills has traditionally been very manual and time-consuming for business owners. From getting bills into accounting software, to accurately coding and processing them, making payments, checking the status to ensure they’re paid, and finally reconciling it all. There are a lot of steps in the process, so we’ve been focussed on making it simpler and easier.
A better way with Xero
Xero offers the tools and capability to seamlessly manage your bills from start to finish:
- Automate entering and coding bills in Xero using Hubdoc
- Pay multiple supplier bills all in one place — regardless of your bank — using Pay with TransferWise
- Make reconciliation fast and simple using bank feeds
Pay with TransferWise is Xero’s new bill payment solution. It has transformed the bill payment experience by seamlessly bringing together the myriad of manual, disjointed, error-prone processes. What’s left is a standardised, efficient and secure way for small businesses to pay and manage supplier bills. You’ll be surprised at how easy it is and how much time you will save.