Turning cash flow into cash now with Paidnice
“When my debtor workflow is turned off, people stop paying me almost immediately.” This stark observation from Haley Reyners, founder of My Two Cents Accounting Services, highlights a common challenge facing small businesses. For her accounting and advisory firm, which is based in Northland, New Zealand, having over $60,000 tied up in outstanding invoices wasn’t just a number – it was a threat to business sustainability.
“I’m the same as any other small business owner. Cash flow is crucial, and if I don’t have money in my bank, I can’t pay my people or my bills,” says Haley. “As the economy is getting tougher and the cost of living is going up, cash flow is crucial for everything to do with business.”
Outgrowing a broken system
Before finding the right solution, My Two Cents struggled with an outdated debtor management system that had declined in functionality after being acquired by a larger company.
“We lost a lot of the in-touch support and functionality which didn’t really work for us – for my own business as well as for clients,” Haley explains. “We were looking for an invoice reminder solution that was more customisable and had support available when we needed it.”
Finding a flexible solution that can scale
The integration of Paidnice with Xero provided the customisation and local support My Two Cents needed.
“The biggest thing we liked about Paidnice was that it was New Zealand-based, with local support that continues to be awesome – which is something we really need when it comes to running these debtor management workflows,” says Haley.
One standout feature transformed how My Two Cents manages different client relationships. “The whitelist option is a really cool feature,” Haley notes. “We have clients who might have specific payment terms, or we might run their batch payments for them. Being able to create different whitelists for different clients so they’re not caught up in workflows is really awesome.”
Half the wait, double the cash(flow)
The impact of Paidnice on My Two Cents’ cash flow was dramatic:
- Outstanding invoices reduced from $60,000 to $24,000
- Payment delays were cut from 45 or more days to under 25 days
- 90% of the collection process was automated
- Cash flow became consistent and predictable
“You can do a lot of this process manually if you choose,” Haley explains. “But having software that manages these workflows and automates so much means it just works. If you can automate 90 percent of the process, so the manual side is actually just making those phone calls, it’s a win-win for everybody.”
Why there’s no more room for ‘maybe’
The benefits of using Paidnice extended beyond My Two Cents to their clients.
“For our clients, having cash in the bank rather than sitting with huge balances of outstanding debtors is crucial,” says Haley. “That’s what we focus on when it comes to debtor management.”
When asked about the value proposition, Haley is unequivocal: “If you’re already considering whether you need something to help you with your cash flow management and debtors, then you need to go for it. If you’re on the fence about it and you’ve got debtors that are out of hand, there’s no sitting on the fence – you’ve got no option.”
“For the cost of the subscription versus money in your bank, it’s definitely a no-brainer,” Haley concludes. “It should be part of your internal processes and systems. It should be part of your tech stack. You need cash in your bank – and that’s the key for Paidnice, getting cash in your bank.”
Paidnice is an accounts receivable automation solution that helps businesses get paid faster through automated debtor workflows, late fees, reminders, call, and payment collection via seamless integration with Xero.
Check out Paidnice in the Xero App Store.
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Source: Xero Blog
