One simple way to get more control over cash flow
We talk a lot about the endless pressure on small business owners, because we see it with our clients often. The constant juggle… so much to do, so little time.
And the solution is not always to employ extra people, because often there’s a fine line between needing extra hands, and actually being able to afford it.
Take control with technology
This is where technology can be used to your advantage.
“There are some excellent tools around to help you make some short cuts, when it comes to saving you manpower – time and energy,” says Jim Vass.
One of these is a Xero add on called the Xero Projects App.
Xero Projects App enables you to:
- Create and manage as many projects as you want
- Monitor job costs from day to day, to stay on track
- Add task estimates and track budgets with ease
- Track time using a stop-start timer
- Turn logged time and costs into invoices
- Make project accounting easy with helpful reports
What is there to like about Xero Projects App?
It’s easy to use, and designed especially for small business. Plus, it talks to your business accounting software which streamlines the process between monitoring a particular job (and associated costs) as well as invoicing and receiving payments, and then tax where applicable.
Project management in your pocket
And, because it is easily uploaded to a smartphone, it can be used anytime, on the go.
“This is ideal for any small business that’s focused on self-contained projects that are relatively simple. A tradie for example, building a deck or plumbing a bathroom. And, for more complex businesses, Xero offers Workflow Max,” Jim explains.
Taking control
Within the ATB Partners’ five-step plan for taking control of your business, step five is ‘measure and plan.’
“All of the steps are inextricably linked,” says Jim, “but if the ‘measure and planning’ is not done properly, typically, money starts to haemorrhage and then a business starts to erode its financial base without necessarily knowing why.”
Project management affects cash flow management
“Cash flow problems and mismanaged finances are major causes of business failure in the early years,” says Jim Vass. “So while the annual budgeting and forecasting are crucial, so is the day-to-day management of the money.”
Cash flow is the lifeblood of every business – money going out, money coming in. Getting control of that is imperative to success. Every business has its own cash flow cycle and so taking sensible, practical steps will help track, measure and control spending and grow your business without the need to take excessive financial risks.
Planning with useful data
The Xero Projects App allows you to capture all of the project related information, and knowledge gives you more control.
“This kind of project-by-project data can be really useful over the longer term too,” says Jim. “Not just assisting with wise money management, but also with more strategic planning.
Even the most seasoned business owner is always looking for ways to improve, and we encourage our clients to remain tech savvy and to take advantage of software and other innovations that don’t just free up time, but actually allow you to capture useful information you can use as a basis for planning all aspects of your business.”
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