Online accounts package that's good at cashflow forecasting

[BobBuilder]

I know that the question, “which online accounts package should I use?” is one that is regularly asked and often answered by, “use the one with which your accountant is most familiar”.

In this instance the company limited by guarantee has an accountant who doesn’t use an online system. The company also has a need for the accounts package to be able to automatically send reminders to get customers to pay their invoices. It also needs a package that can help forecast cashflow.

Does anyone have any thoughts on Xero for the above requirements or are there better packages that can cope with a) credit control and 2) cash flow forecasting?

They currently use a spreadsheet accounting package.

Any thoughts welcome, thanks

 

[Jennie@FreeAgent]

Hi, I am obviously biased but I would recommend trying out FreeAgent. I actually added an offer last week that is exclusive to UKBF members - you can try FreeAgent for free (no credit card required) for 2 months if you sign up before 31st July. We have a fantastic support team behind our software who are always on hand to answer any questions you have.

Here is the offer: http://www.ukbusinessforums.co.uk/threads/july-offer-try-freeagent-free-for-2-months.329958/

If you have any questions at all, just ask

Jennie

 

[BobBuilder]

Thank you Jennie.

Does FreeAgent perform the credit control functions and cashflow forecasting?

 

[Jennie@FreeAgent]

You're very welcome!

Yes, for credit control you will receive automatic email reminders. As for the cashflow forecasting, unfortunately not but you could use a separate app such as Float for that.

Hope this helps.

 

[BobBuilder]

Is Float something that can sync with FreeAgent automatically or which can extract the data?

 

[Jennie@FreeAgent]

Yes, Float can sync with your FreeAgent data. More about this and all other integrations can be seen here: http://www.freeagent.com/developers/goodies

 

[MyAccountantOnline]

@Jennie@FreeAgent

Does Freeagent automatically send emails to customers for unpaid sales invoices?

 

[Jennie@FreeAgent]

@Jennie@FreeAgent

Does Freeagent automatically send emails to customers for unpaid sales invoices?

Yes, it does indeed

 

[MyAccountantOnline]

Yes, it does indeed

Thanks Jennie - presumably you have to set it to send automated reminders somehow?

 

[Jennie@FreeAgent]

Thanks Jennie - presumably you have to set it to send automated reminders somehow?

Yes but it's very easy to do. This page about automatic reminder emails explains how to do it.

 

[MyAccountantOnline]

Yes but it's very easy to do. This page about automatic reminder emails explains how to do it.

Thank you very much Jennie.

 

[Jennie@FreeAgent]

Thank you very much Jennie.

You're more than welcome

 

[BobBuilder]

Interesting stuff re Freeagent - Geoff at GRD credit sent me the following direct message which I thought I'd put up here for the benefit of others reading.

Hi

I have read your post and note that you have specifically asked about Xero

Xero itself does not have an automated credit control process but I am a reseller for Debtor Daddy (horrible name, great product!) which integrates with Xero and does what you are asking for - a free one month trial is also available

Price is £9.50 plus VAT per month for this add on

If you go the Xero route please let me know!

Geoff
[email protected]
01823 299686

 

[BobBuilder]

I am now told that the Enterprise's accountant does use Sage.

I remember from 20 years back as Sage being very expensive but maybe they've repositioned themselves now due to extra competition.

Does anyone know how well Sage deals with the extras of credit control and of cashflow forecasting?

 

[David Griffiths]

I remember from 20 years back as Sage being very expensive but maybe they've repositioned themselves now due to extra competition.

Perhaps not. Recent thread on this forum

Many accounts programs will give you anticipated cashflows for accounts payable and receivable based on due dates, but I've not used one that factors in wages and other costs that don't go through the ledgers.

And if people don't pay on the due dates the forecasting immediately goes wrong in most cases. Xero does at least allow you to put an "expected" date next to invoices. For me, cash flow forecasting is probably best done as a standalone, possibly using spreadsheets and data exported from the main accounts package.

On that topic, Sage's exports to Excel are horrendous, as they overcomplicate the formatting, merging cells and columns. I've never yet been able to export and use without a shedload of reformatting. One of the reasons that I think that Sage is pants. Expensive pants at that.

 

[BobBuilder]

Xero does at least allow you to put an "expected" date next to invoices.

That little nugget of information is very useful thank you - is that without needing an add on of Float (or other specific cashflow programs?

I agree with you about spreadsheets being the ultimate tool - but if the data could come from Xero with the forecasted expected invoice payments then that would make it better.

 

[David Griffiths]

Yes, that's without an add on.

As part of the general set up you can specify default terms of payment - 14 days, 30 days from month end etc - and the due date generated will appear on the invoice that is sent. You can overwrite this on a customer by customer (or supplier) basis to allow for terms that aren't standard.

Xero then gives a graphical representation of money due in and out each month on that basis. If somebody is going to pay late, you can put an expected date against each invoice. You can do this in batches so if you have 20 invoices for one customer, you can update the expected date for them all in one go

And Xero's export to Excel is very straightforward and easy to use

Debtor Daddy isn't the only add-on btw - here's a link to the Xero add-ons page. I can't speak for or against any of them but they might be interesting

 

[GraemeL]

Hello Bob

I run my own business. I am not an accountant or have any interest in promotion of any system, but speak as systems user.

I tried 4 or 5 different cloud based systems before ending up with Clear Books. There were a number of specific requirements that eventually led me to CB. It is huge pain to try an accounting system and then move to another and not be to recommended!

Clear Books can send the payment chasing letters you seek. As far as cashflow forecasting is concerned, I agree with earlier comments - a spreadsheet is best as there is so much guesswork in anything other than short term forecasts.

The most significant feature of CB I have found is the support. The forum is pretty good but you can get live support. Almost unheard of with most accounts packs

G

 

[BobBuilder]

Thanks for your comments, Graeme.

As far as cashflow forecasting is concerned, I agree with earlier comments - a spreadsheet is best as there is so much guesswork in anything other than short term forecasts.

What I was hoping was that one could take the "guesswork" and put it in the accounts system to look at ones (guessed) future cashflow. I was taking the view that if it's best to use an accounts system for actual transactions rather than a spreadsheet, then that should apply to hypothetical transactions (ie the guesswork) too.

 

[GraemeL]

Cashflow forecasting..... Have to disagree on this! Accounts systems need accurate data whatever you are doing, they can't cope with approximations. Accurate data for future cashflow means putting in stuff at a very granular level or a similar level to your day to day accounts. Sales by individual customer, payment days by customer same for suppliers. What a job!

Then of course as soon as you get a few more weeks of real data, all of the detail guesstimates are wrong.

Much easier to bundle all customer together as 'Sales', take average payment days across all customers and same for suppliers and stocks.

(Xero was one I tried - my accountant uses it - poor support and cannot handle reverse charge VAT - I think its because its not a UK based system so its not a priority for them. CB is based in UK)

 

[Mike Conroy]

you could use freeagent with the float add-on this would work for you.