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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news