Get Paid Faster: Simple Ways to Improve Your Accounts Receivable with Xero

In business, if you don’t get paid, you die. Cash flow is the lifeblood of any small business, and getting paid on time keeps things moving smoothly. Managing your accounts receivable effectively means you’ll have more time to focus on what you do best, without stressing over unpaid invoices.

Here are some practical, easy-to-apply tips for improving your accounts receivable process using Xero:

1. Set Clear Payment Terms

Make it clear from the start when you expect payment. In Xero, you can set up terms that fit your business, like “due in 7 days.” Setting these expectations early helps prevent payment delays and keeps cash flowing.

2. Automate Your Invoices

Take advantage of Xero’s automation tools to send invoices without lifting a finger. Setting up recurring invoices means your clients get their bills on time, every time, which is especially useful if you’re billing for ongoing services.

3. Use Friendly Reminders

Sometimes, all it takes is a nudge. Xero lets you set up automatic reminders for overdue invoices so you’re not constantly chasing payments. A quick, friendly reminder can do wonders in getting clients to hit “pay.”

4. Reconcile Your Transactions Regularly

Set aside a little time each week to stay on top of things. For example, reserve an hour every Friday morning to log in to Xero, reconcile your bank transactions, and check on any unpaid invoices. This habit keeps your accounts up to date and helps you catch any issues before they snowball.

5. Make It Easy for Clients to Pay

The easier it is for clients to pay you, the faster you’ll get paid. Xero lets you connect online payment options to your invoices, so clients can pay with a credit card or transfer straight from the invoice. More payment options can mean less waiting for your money.

6. Keep Tabs on Outstanding Invoices

Get into the habit of checking Xero’s “Aged Receivables” report to see what’s overdue. It’s a quick way to spot which clients need a follow-up. Regular monitoring gives you a heads-up before unpaid invoices start affecting your cash flow.

Also important to remember: Every business is different, and every customer is different so it's important you have a plan suited to your industry and customers. Engaging with your customers who have missed paying in a timely and constructive way is essential, no matter the context.

These tips will help you streamline your accounts receivable process in Xero, so you can spend less time worrying about getting paid and more time on growing your business. Simple tweaks like these can make a big difference in keeping your cash flow steady and your business thriving.