Using Xero Analytics For Forecasting For The Future

Do you use Xero? Then you need to tap into their Xero analytics tool! Every small business deserves access to trusted, insightful data that helps them understand their current position and forecast their future. That’s where Xero’s Analytics Plus tool can help. 

What is Xero Analytics? 

Many businesses rely on various tools to predict future cash flow. With Xero Analytics Plus, this can all be done within Xero, using data from a business’s Xero account to analyse trends and gain a deeper understanding of financial performance. This helps you track everything in once place and saves you moving key figures into separate software. 

Here’s what Xero Analytics Plus offers: 

Long-term cash flow projections 

One of our favourite features of Xero Analytics Plus is the ability to view a projection of the bank balance 7, 30, 60, and 90 days into the future. This feature gives you better visibility of potential cash flow in the longer term, helping you to plan much more confidently. Instead of juggling multiple spreadsheets and guesswork, businesses can have a clear, data-driven view of their financial trajectory. 

Predict future recurring transactions 

As well as projecting the bank balance, Xero Analytics Plus also predicts future recurring transactions in short-term cash flow. This includes regular expenses such as Xero Payroll, as well as repeated invoices and bills that are already scheduled. Having these predictions readily available ensures businesses are always prepared for upcoming financial commitments and helps you to avoid any nasty surprises. 

Scenario planning with manual adjustments 

Xero Analytics Plus allows users to manually add or remove transactions, enabling scenario planning. This flexibility helps businesses explore different outcomes based on hypothetical situations, providing a clearer picture of potential future scenarios and giving you a helping hand in strategic decision-making. 

Customisable business performance trends 

With Xero Analytics Plus, businesses can quickly analyse trends in their performance by customising the date ranges and account codes displayed in the business snapshot. This level of customisation allows for a view of *your* financial data, focusing on the metrics that matter most to each unique business. Pretty nifty, right? 

Drill down to transaction level details 

Transparency and detail are obviously important for financial projections. Xero Analytics Plus allows users to drill down to a transaction level at any point to see how a particular prediction was made. This detailed insight ensures understanding of the data behind the forecasts and builds trust in the accuracy of the projections. 

Simple, intuitive dashboards 

Technology can be pretty complicated at times, but fortunately Xero spares you tech related headaches thanks to its clean, simple and easy to use dashboards. Whether a seasoned financial professional or a small business owner with limited accounting knowledge, the interface is intuitive and user-friendly. This ease of use allows you to get to grips with it quickly with no steep learning curve. 

Continuous improvement 

Xero’s commitment to continuous improvement ensures that the predictive algorithms behind Analytics Plus will keep getting better. By taking advantage of machine learning and user feedback, Xero aims to refine Analytics Plus to meet the constantly evolving needs of its customers, providing better forecasts and even more actionable insights to help businesses thrive. 

Empowering advisors 

Xero Analytics Plus is also incredibly useful for advisors, not just small business owners. Accountants and bookkeepers can use the insights generated by Analytics Plus to have deeper, more meaningful conversations with their clients.  

Getting started with Xero Analytics Plus 

To get started with Xero Analytics Plus, users can log in to their Xero account and head over to the Analytics section. From there, you can then explore the new features and start using the tool to gain deeper insights into their business. 

Xero continues to empower and help small businesses by providing them with the tools they need to succeed. Xero Analytics Plus represents a significant step forward in helping businesses forecast the future and achieve their goals.  


If you have questions about any aspect of your finances, please get in touch with the Trinity team. We’d love to help! 

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