For dental practices looking to grow, think of a cash-flow analysis as being similar to good oral hygiene: Avoiding it can lead to pain harsher than a toothache.
Cash flow plays a crucial role in growing your business and making smarter business decisions, however a successful analysis can be tricky to get right when you have a dental practice.
Generally dental practices typically have high overheads which makes keeping your cash flow analysis accurate even more important. Because changes in cash flow from fluctuations in income and expenses, a good business exercise is to monitor these two variables. So, if you’d like to make your bank account statement less frightening, Xero helps you to improve how you manage your cash flow by helping you with tracking your income and expenses and helps you understand where your business stands through cash flow analysis.
I’d like to tell you about a couple of Xero features currently released as a pilot, that provide better visibility and insights you need to manage your cash flow during COVID-19 (and beyond).
Business snapshot
This feature is something you need to add to your dashboard if you are fond of charts, tables and at a glance figures, with an easy ability of comparison to your:
- Profit and loss
- Turnover
- Expenses and efficiency between periods
This feature allows you to see your cash balance and average time it takes to get paid and pay suppliers, all on one page. This can be accessed under the ‘Business’ tab in Xero and will be available until 31 August 2020.
Short-term cash flow feature
This feature visually projects your bank balance 30 days ahead, showing you the impact of future bills and invoices if paid on time.
It’s designed to provide you with an up-to-date view of cash flow in Xero at a glance helping you manage your future cash flow better. You’ll be able to choose a bank account you would like to analyse and switch between a 7-day and 30-day view.
If you’re not yet using Xero bookkeeping, now is the time to switch. One of our clients recently said: “the switch to Xero has made it the least time consuming year end ever!” Not only will it give you the visibility you need right now but it will also save you time in the long run.
