Have You Started Using Xero’s Mighty Cashflow Forecasting Tool?
What Is This “Short-term Cash Flow” Function?
The Short-term Cash Flow is a fairly new tool in Xero that tallies your data entry of bills and invoices and shows you the forecast of your bank balance in the coming 30 days. The automatic AI will also suggest your next action steps.
Why This Might Be Useful For You
Have you ever run out of cash? How much trouble did you have to go through to resolve the bottleneck? Well, if you are able to forecast your cashflow, then this will allow you to know when you are dangerously low, and when to start chasing for your invoices. This way, you will not have to deal with the headache of running around to do damage control in the future!
How Best To Use It
Before using it, it would be best if your overdue invoices and bills are paid and reconciled. This way, the function will give you a much more accurate forecast.
Try It Yourself!
In Xero, go to Business menu → Short-term Cash Flow.
Under Bank Accounts Included, select the relevant bank accounts.
Under Projection Applies To, select Next 7 days OR Next 30 Days.
Click Show Projection.
When the dashboard appears, you may change your bank accounts and projection date from the dashboard.
You can group Invoices Owed To You together with Bills To Pay by contract or date.
On the dashboard, complete any Suggested Actions to have the most accurate projections.