Story image

NZ SMBs using online accounting tools get paid 25% faster

23 May 2014

New Zealand small to mid-sized businesses (SMBs) using online accounting are getting paid 11 days faster now than they were in 2011, according to research undertaken by online accounting software leader Xero.

New Zealand businesses using Xero are getting paid 32 days after invoicing their customers, down from 43 in 2011, resulting in significant cash flow improvement.

The statistic comes from the aggregation of eight million invoices raised through Xero in the two years since October 2011 from the same sample of New Zealand SMBs.

With online invoicing, small business owners can see if invoices have been opened, send invoices from a mobile device, and, via automated bank feeds, regularly check their bank account balance to stay on top of collections.

Xero New Zealand Managing Director, Victoria Crone, says online accounting can help businesses get paid faster by cutting time out of the actual invoicing process, resulting in a significant improvement of cash flow.

“It’s easy to forget to pay an invoice, especially when it arrives days later with payment instructions buried in the fine print. With online invoicing, the invoice arrives instantly, and then customers can pay easily through a “pay now” button on the invoice," she says.

“Faster and more efficient cash collection means business have more money in the bank, resulting in less debt and therefore less interest to pay, allowing them to invest back in their business, buy equipment, improve processes or expand operations.

"Cash availability is such a key part of every small business’ success or failure."

The data is based on aggregated, anonymous data and was generated by comparing monthly invoicing activity for 43,000 businesses on Xero worldwide over the two years to October 2013.

The results showed that, per month, SMBs processed twice as many invoices in the Xero systems totalling US$1 billion more in value compared to two years ago. Xero partly attributes this to the global economy recovering from the after-effects of the 2008 downturn.

Chch crypto exchange Cryptopia facing liquidation
It seems that Christchurch-based cryptocurrency exchange Cryptopia has been unable to recover after malicious cyber attackers stole around $20 million worth of cryptocurrency.
Adobe & Amazon: Making merchants' stores a lot more powerful
Magento Commerce branded stores for Amazon sellers features native integration with Amazon merchant tools including Amazon Pay and Fulfillment by Amazon. These provide the convenience of secure payments and speedy shipping services for buyers.
Four NZ projects shortlisted in IDC's APAC Smart Cities Awards
The annual awards highlight and acknowledge outstanding smart city initiatives in the Asia Pacific region and this year attracted over 180 entries.
How Chorus aims to reshape service company maintenance contracts
“These contracts are the first step in moving Chorus beyond the major UFB network build."
Mind Lab at MOTAT hosting event to promote young women in tech
Gender diversity in the tech industry is a hot topic around the world, but it’s one that New Zealand is looking to tackle head on.
SOLD: Infratil & partner snap up Vodafone NZ
Brookfield Asset Management and Infratil will hand over NZ$3.4 billion to acquire Vodafone New Zealand.
Noise pollution is the new second-hand smoke
ow loud is our phone call? Can you hear your co-worker’s music through their headphones? Do you need to have that meeting in a public area of the office?
Infratil throws its hat into the buyer's market for Vodafone NZ
Vodafone has been through a turbulent time lately, after the threat of staff redundancies, constant fines from the Commerce Commission, and the addition of Vodafone CEO Jason Paris late last year.