Xero Cash Flow Forecasting Tool - Uses and Limitations The Xero forecasting tool is powerful and will allow you to do a lot, including acting as a short-term cash flow tool. If you want to take control of your business’s finances, it’s important to consider Xero.
In this Xero cash flow forecasting guide, we’re going to cover a few key topics:
A cash flow forecast is a projection of your business’s liquidity for a specific period of time. For example, you may want to run a monthly cash flow forecast, and this forecast will include:
When you start using Xero cash flow forecasting, you can forecast what your cash flow will be at a specific moment in time. For example, you may learn that in the next 30-day period, your business will have negative cash flow if trends remain the same.
In this case, you may want to secure outside financing to help keep your operations up and running.
Xero does a lot of great things for accountants and bookkeepers, and it’s a feature-rich platform that allows you to pay bills, connect bank accounts, claim expenses, accept payments, track projects, reconcile bank accounts and more.
However, many users overlook the Xero forecasting tool.
Many users ask the question “how do you use cash flow forecasting in Xero?” because they don’t know that the tool exists.
However, since the platform does track revenue and expenses, it does have the power to help you with cash flow forecasting.
Xero makes it easy for users to run their first forecast. You will need to do the following:
You'll find the forecast option under the dashboard section and will have the option to choose projections for 7 or 30 days. Higher-tier accounts have cash flow forecasts for up to 90 days.
Finding the short-term forecast tool is easy:
Xero uses the information in your bank account and historical data to create:
However, Xero cash flow forecasting methods are limited. The platform only uses short-term forecasting methods and doesn’t have an option for long-term forecasting.
The Xero forecasting tool is limited, and it’s a good option for a short-term forecast. However, it has a few issues that you should know about:
Xero is a fantastic solution to manage your business’s finances, but it’s not a dedicated cash flow forecasting tool. A dedicated tool will always provide you with more cash flow-related features than a tool like Xero that does a little of everything.
Xero is a powerhouse in the industry and is filled with state-of-the-art accounting features. You can use the platform anywhere in the world where you have an Internet connection, and it can help you:
However, the true power of the platform comes from the 800+ integrations with apps and plugins that are available. These integrations allow you to connect to Cash Flow Frog for one of the industry’s best integrations.
When you combine these two platforms together, you gain accurate data from Xero with the advanced cash flow features of Cash Flow Frog. If you want to make better decisions to grow your business and have a complete understanding of your liquidity, there’s no better pairing in the industry than Cash Flow Frog and Xero.
Cash Flow Frog’s Xero integration makes running forecasts as simple and easy as possible. Once you allow us to access the data in your Xero account, we can begin:
Our platform is one of the leading cash flow centric platforms in the world. When you combine the power of our tool with Xero, it opens a world of financial data to you that can help you make smarter business decisions.
Cash Flow Frog extends the great features of Xero by allowing you to take full control of your cash flow. While Xero allows for a short-term cash flow forecast, Cash Flow Frog empowers you with:
Cash Flow Frog can collect the data from your Xero account and allow you to visualize the financial health of your business in a way that makes sense to you.
If you want to leverage a cash flow tool that doubles as a Xero forecasting tool thanks to built-in integration, Cash Flow Frog is the best choice for you. Our platform offers state-of-the-art cash flow features, such as:
If you want to extend the Xero cash flow forecasting process, Cash Flow Frog is your best option. We invite you to give our platform a try for yourself to see just how powerful Xero and Cash Flow Frog can be together.
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