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Haines Watts Hereford Phone icon 01432 273189

A common problem our clients face is cash flow and in particular how to get cash into their bank accounts quicker without the time-consuming awkwardness of chasing debtors. There is a solution… utilising cloud apps.

Changes to VAT submissions have led many businesses to move their accounts systems to the cloud, such as Xero or Quickbooks. These systems have excellent functionality, not least the ability to generate automatic reminders to clients on overdue invoices. However, they are just reminders.

A number of our clients have now come to the conclusion that utilising technology is the way to go if you want to free up valuable staff time. Luckily there are a number of cloud apps designed to do one thing… help you get paid quicker.

Setting up direct debits with your customers using Go Cardless  

Go Cardless is a cloud app which sets up direct debits (DD) with your clients. In essence, when you set up a new customer in your cloud system you can ask Go Cardless to send out a direct debit mandate. Alternatively, the system will automatically send out a DD mandate when it sees you have invoiced a new customer without an approved DD mandate.

Go Cardless and Xero interface with one another which means that, once the DD mandate has been approved by your client, when you raise an invoice in Xero, Go Cardless will collect the payment automatically from your clients’ nominated account on the agreed terms as per the mandate. Go Cardless collects the payment and deposits this payment into your bank account within 4 days of collection and also tells Xero that the invoice has been paid.

When we discuss what Go Cardless can do for a business’ cash flow, clients are amazed at how much time and effort this would save them. Our clients we have set up with Go Cardless say they would never be without it.

Let’s not stop there… we also use cloud apps which can support credit control.

Debt chasing cloud apps

There are a number of amazing cloud apps specifically designed around credit control.

Our clients report that one of the hardest parts of their job is credit control, due to the time it takes up and because people feel uncomfortable chasing customers for money.

As we’ve noted, cloud accounting software such as Xero can generate automatic reminders for overdue invoices but for a fully customisable automatic debt chasing approach we recommend Chaser. This cloud app interfaces with Xero and allows you to customise the whole debt chasing process, including when and how debtors are contacted and branded templates.

The clients we have supported to integrate these cloud apps have reported significant improvements to cash flow and a material reduction in amounts due, overdue invoices and non-payments. One client called to thank us for getting their weekends back!

Many thanks for reading and please get in touch if you would like to discuss your requirements on how cloud apps can support you and your business.

 

Want to know more? Call us on 01432 273189 or email hereford@hwca.com

About the author

David Bradley

David Bradley is a FCCA, APMG Prince 2 registered practitioner and Society of Trust & Estates (STEP) practitioner affiliate, with extensive experience in the banking, financial services and accounting technology sectors.

Initially trained in a top 50 accountancy firm, David furthered his career by moving into industry working for a city fund manager and, for the best part of 10 years, gaining valuable experience working in a variety of senior finance/project roles for Lloyds Banking Group.

At Haines Watts, David works with clients to install integrated cloud accounting systems and related applications to streamline business processes.

David lives in Hereford with his family and pet dog Elvis.

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