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Here’s some news you might want to sit down for – according to Xero’s Small Business Insights program, which aggregates and anonymizes data from tens of thousands of Xero small business subscribers in North America, small business invoicing and payment times are improving. That’s right, no more sleepless nights over unpaid invoices cluttering your desk!

The Struggle Was Real — But There’s Good News!

Remember the days when waiting for a payment felt like waiting for rain in a drought? Those prolonged payment due dates and the endless follow-ups… it was enough to make anyone’s hair turn gray. But, take heart, my fellow entrepreneurs! The financial forecast is looking brighter.

The Lowdown on Faster Payment Times

A recent study has revealed that invoices getting squared away faster than before, we’re talking about a major tide shift here. And you are the one who stands to benefit the most. Imagine this – you invoice today, and voila!, the payment clears quicker than your morning cup of coffee gets cold. Pure magic, isn’t it?

What’s Changing Exactly?

Well, for starters, the average time it takes to clear an invoice has shrunk by more than two weeks. That’s fourteen days of cash flow concerns you can kiss goodbye. It’s almost as if your clients have realized your time—and service—are valuable. Finally!

But, why the sudden change of heart? One big push comes from innovative software solutions shaking up the traditional invoice process. More companies are now using digitized systems  to streamline payments. This not only speeds things up but also makes it easier to keep your finger on the pulse of your finances.

What This Means for You

“Tell me more,” I hear you say! For us go-getters in the busy world of small business, here’s the takeaway:

• Improved Cash Flow: Money coming in faster means more wiggle room for growth and investment. Think new equipment, extra marketing dollars, or hey, maybe even a staff happy hour!
• Reduced Stress: Fewer days chasing payments equate to more mental peace. After all, you’re not a bill collector—you’ve got a business to run!
• Better Planning: When you can predict your income more accurately, preparation for the future gets heaps easier.

Tips to Keep the Momentum Going

Now, we don’t want this positive trend to be a mere flash in the pan. Here’s how you can continue riding the wave:

• Go Digital: If you haven’t already, implement invoicing and payment software. It’s time to join the digital revolution!
• Clear Terms: Define payment terms up-front, and don’t be shy making them known. Clarity is king!
• Prompt Invoicing: Send those invoices stat! The sooner an invoice goes out, the sooner you can get paid.
• Follow Up: Don’t just send it and forget it. Gentle reminders can make a world of difference.

Final Thoughts

It looks like the days of nail-biting waits for checks to clear may be behind us. And hey, that’s something we can all get excited about! More money in the bank and less worry on your mind leaves you free to do what you do best—drive your business forward.

Remember, it’s your hard-earned money; it should be in your pocket, not floating in the abyss of “Net-30” land. With these new and improved payment times, your business cash flow could become as steady as that trusty cup of joe that kickstarts your morning hustle.

Why not take a moment to review your own processes and see where you can speed things up? Now is the perfect moment to ensure your business levers this trend for all it’s worth. After all, a small change today can mean growth tomorrow.

Get in touch with us if you have any questions.

Read the full article from Xero here.