Flow In: Invoices due and overdue

This guide will explain the these two sections of the Flow In page, and help you with ideas on how to use these metrics to improve your cash position!

 

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Invoices due & overdue

 

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This chart shows the values of invoices by age, in the example above £2380 worth of invoices are aged between 0-14 days, and there is £335 in invoices older than 91 days.

Use this chart to get a look at the age of your invoices across the board, ideally you want to see most of your invoices on the left hand side, where they are "young" and not yet overdue!

If you have a high value of invoices on the right hand side you will want to scroll up the Flow In page and look at the overdue invoices in detail to help you know what customers to chase up.

As you start to improve the rate at which you collect payment you should see the values in the chart shift to the left as the time for which payment is outstanding decreases.

 

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Cash from invoices : Recent, prior year & predicted

 

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This chart gives a month on month break down of the invoiced amount that was paid in each month, be aware this is not the amount invoiced in that month, but the amount that was paid.

We also compare this to the previous year (if you have multiple years worth of accounting data)

The "predicted" column here tracks what outstanding invoices are due to be paid in that month, based on your customers payment histories over their recent invoices.  This means we do not predict new sales, instead we are predicting when outstanding invoices will be paid.

If you have a customer for whom you are invoicing for the first time, we will use the due date from the invoice as the predicted date, as we do not have customer payment behaviours to build a prediction from.

Use this chart to help you understand your month on month inbound cash, the prediction can be used to help you plan for the future, you can also compare this information against your predicted bills in the Flow out page. Don't forget that Flow In is only one half of the story, and you need to think about both inbound and outbound cash to manage your cash flow most effectively. 

For example, if you see a large amount of predicted cash coming your way in an upcoming month, cross reference this against your predicted spend in that month to have a good idea of what cash will be available to you.

 

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Click here to keep learning about Flow, and how it can help you be better at managing your cash flow!

 

 

 

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