Xero’s March 2026 data: questions to take to your clients
Xero’s UK data for January to March 2026 showed sales growth slowing to 2.9% year on year and an average time to be paid of 29 days. Use that dated context to ask whether a client’s margins are holding up and whether cash arrives in time for its commitments. The client’s own records should determine the action.
The figures describe the March quarter, not the current month
Xero published the UK release on 30 April 2026. It used anonymised, aggregated data from 440,000 UK small businesses using Xero. Sales growth of 2.9% was below the preceding quarter’s 5.2%. This article considers that reporting period; it is not a September trading update. Read the dated Xero release.
Xero’s accompanying UK report put jobs growth at 2.1%, wage growth at 2.9% and average time to be paid at 29 days. These are market-level measures. They do not establish that a particular client should hire, increase prices or buy software. Xero’s UK report series provides the underlying context and subsequent updates.
Ask where the cash is delayed
Start with the client’s overdue customer invoices. Which customers are late, by how much and for what reason? Distinguish an invoice that has not been sent from one disputed by the buyer or waiting in its approval process. Each needs a different response.
Then look at supplier commitments over the same period. A forecast based only on bills already in the ledger can miss an invoice waiting in a manager’s email. Ask what has arrived but has not yet been recorded.
Compare sales growth with the costs of those sales
A higher sales total can coexist with a lower margin. For one client, compare the cost of a recurring purchase over recent invoices. Has the unit price changed? Has the mix of products changed? Is a delivery charge now separate?
Choose evidence that answers the client’s question. A total invoice value may be enough for a utility bill. A materials invoice may need the individual quantities and prices before anyone can explain the cost change.
A short client check-in sheet
| Question | Record to bring | Possible next action |
|---|---|---|
| Are customers paying later? | Receivables ageing and payment dates for the same period. | Assign the overdue invoices and reasons to someone who can follow up. |
| Are purchases growing faster than sales? | Recent sales and the relevant supplier bills, with lines where needed. | Review a price change, supplier term or product margin. |
| Are we missing commitments? | Unprocessed documents and invoices waiting for a decision. | Resolve missing information or assign the approver. |
| Is bookkeeping work accumulating? | Count documents awaiting capture, correction and export separately. | Fix the slow step and measure it again next period. |
Measure the work before promising a saving
For one week, record how many invoices need manual correction and where the time goes. Keep collection, data entry, coding and approval separate. An improvement in capture does not explain a delay caused by an absent approver.
Datamolino supports invoice preparation and configured sign-off before export. Those are tools to test against an identified process problem. The Xero market figures are not evidence of a Datamolino time saving.
For the next client conversation, take one unpaid customer invoice and one supplier bill that has not reached the books. Establish who owns the next action on each. That gives the discussion a specific outcome.
