Customers paying on time is essential for maintaining healthy cash flow in any business.
Modern accounting software like, XERO and QuickBooks, can help do this. They have features, such as online payment services, which simplify the payment process for you and your customers – making it easier for your customers to pay on time.
So you can improve your cash flow and save time.
Here are the best features in XERO and QuickBooks that you can use straightaway:-
1: AUTOMATED PAYMENT REMINDERS
The automated payment reminder feature does what it says – it automatically sends reminders your customers to pay your outstanding invoice.
The software has different types of reminders which you can choose to use.
- Early Reminders – Send reminders a few days before an invoice is due. This serves as a gentle nudge for customers so they don’t forget to make the upcoming payment.
- Overdue Reminders – Automatically notifies customers when their invoices become overdue. This helps reduce outstanding balances without having to manually follow up.
- Customization – Customize the frequency and timing of reminders based on the client. For clients who consistently pay on time, you can choose to disable reminders.
2: OFFER MULTIPLE PAYMENT OPTIONS
Offering various online payment methods makes it easier for customers to pay you.
By integrating your accounting software with online payment services, you can provide customers with convenient and secure payment options.
Most accounting software will offer different payments options but to show what is possible I will outline what options Xero and QuickBooks have.
Online Payment features in XERO
- Payment Integration – Connect payment services like Stripe, GoCardless, or PayPal, enabling your customers to easily pay invoices online. You can set up these services through XERO’s settings.
- Invoice Template – Add the payment service to an invoice template to automatically include a “Review and pay” button on all invoices using that template. To pay all the customer has to do is click the button.
- Automatic Cash Allocation – When sales invoices are paid via a payment service, such as Stripe or GoCardless, then XERO will automatically match the payment against the sales invoice. This feature makes the bookkeeping more efficient – thus saving the business time and money.
Online Payment features in QuickBooks
- Payment Links – You can create payment links for invoices, receipts, and estimates, allowing flexibility in how you request payments.
- Customize Appearance – Enhance the look of your payment links by adding your company logo and branding.
- Track Payment Status – Monitor the status of your payment links to stay updated on pending and completed transactions.
- Receive Notifications – Enable notifications to get alerts when customers complete payments through a payment link.
SUMMARY
In a nutshell, XERO and QuickBooks can improve your cash flow but also save you time and effort.
That’s because automated payment reminders and various online payment options help ensure that payments are made on time and significantly reduce the amount of time spent phoning customers chasing for payment.
Disclaimer
You must take professional advice before making any decisions based on the information that you have learnt here. While every effort has been made, to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavour to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting, which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.
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