Xero pilot new cash flow system…
At Xero’s flagship Xerocon event in Brisbane recently, they announced the pilot of a short term cash flow feature. It’s designed for businesses who want to get a better grasp of their cashflow, and will predict the user’s bank balance for 7 or 30 days into the future.
The system assumes that all invoices are paid as due, whether funds are incoming or outgoing, but allows you to change the payment date and see the impact on your cash balance. It will also have a guide to the key debts to chase to improve your cash position.
Why have Xero designed this feature?
A recent study from the Federal Bank of New York showed 82% of small business failures were at least in part due to cash flow issues.
They realise that business owners need to easily see if they’re able to cover payroll and bills for the next month. Previously this was only possible with some calculation, unless you used either an add-on or a cash flow spreadsheet.
When will it be available?
It’s just gone to pilot now, and the aim is that it will be widely available in early 2020. We’ll keep you posted!
What can I do in the meantime?
There are several existing add-ons that can help you keep a close eye on your cashflow.
Our preferred option is ‘Fluidly‘. This bolts onto Xero or Quickbooks and uses AI to look at your previous transactions and forecast how things will go over in the future.
If you’d like to talk about your cash flow, please get in touch. We can help in lots of ways if cash flow is a concern, so please don’t suffer in silence!