Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


SMBs using online accounting tools get paid 25% faster

New Zealand SMBs using online accounting tools get paid 25% faster

21 May 2014

New Zealand small to mid-sized businesses (SMBs) using online accounting are getting paid 11 days faster now than they were in 2011, according to research undertaken by global online accounting software leader Xero.

New Zealand businesses using Xero are getting paid 32 days after invoicing their customers, down from 43 in 2011, resulting in significant cash flow improvement. The statistic comes from the aggregation of eight million invoices raised through Xero in the two years since October 2011 from the same sample of New Zealand SMBs.

With online invoicing, small business owners can see if invoices have been opened, send invoices from a mobile device, and, via automated bank feeds, regularly check their bank account balance to stay on top of collections.

Xero New Zealand Managing Director, Victoria Crone, says online accounting can help businesses get paid faster by cutting time out of the actual invoicing process, resulting in a significant improvement of cash flow.

“It’s easy to forget to pay an invoice, especially when it arrives days later with payment instructions buried in the fine print. With online invoicing, the invoice arrives instantly, and then customers can pay easily through a “pay now” button on the invoice.

“Faster and more efficient cash collection means business have more money in the bank, resulting in less debt and therefore less interest to pay, allowing them to invest back in their business, buy equipment, improve processes or expand operations.”

Crone says SMBs using Xero shouldn’t be stopping at 32 days. “While we have seen huge improvement on debtor days in the last three years, we will be working hard to find ways to help businesses cut this time further. Cash availability is such a key part of every small business’ success or failure. If we can support our customers by continuously shrinking the debtor day timeframe, they will have more cash in the bank to allow them to pay their staff and bills, keep the lights on, and sleep better at night.”

The data is based on aggregated, anonymous data and was generated by comparing monthly invoicing activity for 43,000 businesses on Xero worldwide over the two years to October 2013. The results showed that, per month, SMBs processed twice as many invoices in the Xero systems totalling US$1 billion more in value compared to two years ago. Xero partly attributes this to the global economy recovering from the after-effects of the 2008 downturn.

Credit agencies are also reporting general movements in payment terms. However, Xero users are paid faster than their business counterparts, outstripping the general improvement reported recently by Dunn & Bradstreet. Dunn & Bradstreet’s Trade Payments Analysis shows that the average New Zealand business waits 41 days to be paid, while New Zealand businesses using Xero get paid in 32 days.

View Xero’s “Fewer days to payment” infographic here.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news