Cash flow is the lifeblood of small businesses. It keeps the operations running smoothly. With it, you can pay your suppliers, invest in growth, and pay for daily expenses. When customers or clients are late paying your business, it disrupts business. So, how do you guarantee getting paid on time?
Why Payment Options Matter
Imagine a customer who chose your business over that of a competitor but walks away from you because you only accept cash. That is one incident you can avoid, making it easier for customers to make payments by providing them with more than one payment option. This not only boosts their experience but also encourages repeat business.
Implementing Insights from Xero’s Report
Xero’s report reveals that Australian small businesses can expect payment earlier if they offer multiple payment methods. Traditional methods, like cash at the point of sale or cheque, can delay payments from customers.
By providing a digital method to pay, like Xero’s online invoicing, with payment services such as Stripe or PayPal, small businesses can prevent these delays. Businesses can expect up to 21% faster payment times with these payment methods. That’s a lot of time that can be reinvested to help drive even more value through your business’ capabilities.
Leveraging Technology to Boost Cash Flow
With the Xero payments report, businesses can learn how to improve their strategies and create more value. You can easily connect your invoices to multiple payment solutions.
This way, customers simply click the Pay Now button on your invoice instead of dealing with long payment processes via bank transfer or waiting for cheques to clear. They are easy to use and incredibly convenient for you and your customers.
Avoiding the Pitfalls of Payment Delays
Late payments are often caused by misunderstandings or unclear terms of payment. This is an area where using Xero’s platform can help you. You can ensure your customers receive a professional invoice that clearly lists all payment options and how they can pay.
Automated reminders can also prompt customers to pay on time, reducing the need for follow-up emails or uncomfortable conversations. This saves you time and ensures you receive payments promptly.
Why Xero is the Best Choice for Australian SMEs
Xero offers tailored tools for Australian small businesses, including BAS and GST management, and payroll solutions. With insights from the Global Payments Report, it is possible to easily adapt your payment strategy to a customer’s preference which will speed up the payment process and probably reduce the potential impact of delays on your business.
The Takeaway
Offering several payment options ensures fast money inflow besides making life easier for your customers. Xero’s Payment Insights streamline your financial processes so you can focus on the things that matter: growing your business. Want to know more? Download our report and find out how Xero can revolutionise your payment management and grow your business.