Xero Urges Agri Sector to Improve Glacial Invoicing
Xero announces new app developments, agri-specific reporting templates and benchmarking capability
As Fieldays is in full swing and businesses have been spending up large, Xero is urging agri businesses to proactively manage their finances.
Craig Hudson, New Zealand Country Manager at Xero, says the agri sector has some of the longest payment terms Xero sees across New Zealand.
“The concept of monthly invoicing is outdated for the agri sector. If you aren’t invoicing as you complete work, you are missing a trick. The sector will be losing out on millions due to the unnecessary cost of financing negative cashflow.
“Getting paid quickly should be a business’ number one priority. Waiting 60 or 90 days to get paid and a relaxed approach to paying on time knocks the wind out of the industry.
“Using technology when you are away from the office to keep on top of invoicing and chasing payments is the best way to get paid faster. After all, payment terms start the second you invoice. So the longer you leave it, the longer it takes to get paid,” says Hudson.
To support customers to invoice faster and manage their finances on the go, Xero has rolled out a series of upgrades to their Android and iOS mobile app. The most recent including upgrades to quotes and contacts functionality (see below for detail).
“Cash may be king in the industry, but accounting rules. No matter the size of your business, processes for ensuring you’re paid on time and you know what you’ve got to pay are critical to regular cashflow and maintaining a healthy business,” says Hudson.
Figured, the only farm accounting software that allows farmers, advisors and rural bankers to collaborate around the same data in real time, is exclusively partnered with Xero and has launched a benchmarking tool for Platinum and Gold Figured Partners, as well as multi-entity reporting.
“We are very pleased to see that Figured now has multi-entity reporting available, which will enable thousands of farms previously unable to access Xero effectively and help take the frustration out of doing the accounts and saving farmers precious time,” says Hudson.
Farming teams now have the ability to view localised real-time benchmarked farm financial data (currently, available benchmarked data is over 12 months old). With the help of their advisor, farmers can track key financial metrics against similar farms, providing them with insights into the performance of different aspects of their business.
It will help farming teams understand how their farm is performing in relation to similar farms nearby on the same farming system and help lift the financial performance of farmers.
New Agri Report Templates
Working in close partnership with members of the Rural Advisory Committee (RAC), Xero has launched specific agricultural reporting templates that make reporting easier for New Zealand farmers.
The new agricultural reporting templates contain three profit and loss reports for grouping of farm and rental activities. Also, a detailed schedule of expenses and predefined pages to guide in adding trading accounts and production reports. Additionally, notes to the accounts now include specifics for agricultural activity, revaluations as well as accounting for the Income Tax Act 2007 changes.
About mobile app upgrades:
Xero for Android – Quotes
· Create and send a quote while still on site for example, and get approval faster
· Mark quotes as sent, accepted or declined and view this status in the app
· Add quotes from anywhere in the app.
Xero for iOS – contacts
· Contacts can now be edited when viewing a contact in the app It’ll allow you to easily add new customers or suppliers, fix mistakes or make additions to contacts on the spot, or in their down line.