Xero and GoCardless: Getting you paid on time, every time
Last editedJan 20202 min read
Are you using Xero online accounting to manage finances for your small business? If so, you’ll already be aware of how cloud accounting speeds up processes, automates your admin workload and helps you take control of key numbers.
Xero’s now got a new string to its bow: a direct integration with GoCardlessvia its new app. GoCardless for Xero offers automatic invoice payment and reconciliation. Now your Xero account can be linked straight to GoCardless, providing a fast, efficient way to collect invoice payments from customers with the absolute minimum of hassle.
That has a number of key benefits that will make your finances slicker, more streamlined and working hard for the long-term good of the business. And your customers will love how simple and straightforward it is – meaning you get paid faster!
1. Remove late payment issues while improving cash flow
Late payments can have a huge impact on small businesses. According to recent research, UK businesses with turnovers of under £1million are now waiting an average of 72 days for invoices to be paid.
Using GoCardless to collect your invoice payments by Direct Debit means you’re always paid on the invoice due date. No late payments, no time wasted chasing customers and no worries about the impact of aged debts building up in the business and affecting cash flow.
Cash-flow issues account for around half of all UK start-ups failing in their first five years. That’s mainly due to unstable payment revenues and the resulting lack of liquid cash to fund growth and keep the business in the black. So getting customers to pay you instantly and regularly through GoCardless will have a hugely positive impact on your cash flow.
2. Provide an easier way for customers to pay
Compared to many payment options, GoCardless is an incredibly simple and hassle-free solution for your customers. They can be signed up online in minutes, and need never worry again about missing a payment due date.
Unlike inflexible standing orders, Direct Debit never needs renewing and handles price changes, irregular invoice amounts and ad-hoc payments with ease. It’s the most convenient way for customers to pay – meaning you can add real value by offering GoCardless as an option.
3. Reconcile payments automatically
The average UK business spends 9 hours every week dealing with business banking. Much of this time will be spent on bank reconciliation – matching incoming customer payments to the invoices raised.
With Xero and GoCardless working in tandem, you not only have no chasing of payments to complete, you also have no reconciliation to worry about. GoCardless will automatically reconcile incoming payments to your Xero online invoices, saving hours of admin time – and keeping your Xero numbers 100% up-to-date while delivering real-time reporting.
4. Cost-effective payments solution
Software set-up costs and subscriptions can start to add up and eat into your profits. But with GoCardless, there are no more worries on this front.
Integrating GoCardless with your existing Xero account is totally free. Also, running the GoCardless Direct Debit solution to collect customer payments is a truly cost-effective option. You pay 1% of the total transaction fee, capped at £2, keeping costs down and bringing in steady, predictable income streams in the most productive way possible.
5. Fast and simple setup
Integrating GoCardless with Xero couldn’t be simpler.
Connect your Xero account to GoCardless. Simply create a GoCardless account, complete the ‘GoCardless for Xero’ online registration and your Direct Debit account will instantly appear on your Xero Dashboard, ready to take payment.
Set up your customers. Automatically (or manually) send a request to your customers and ask them to complete the online sign-up process to pay by Direct Debit.
Start collecting payments. collect your payments automatically on the invoice due date, straight into Xero – no more waiting for payments to arrive.
Automatic reconciliation. Your invoices will be reconciled, without you lifting a finger, and the GoCardless fee will be recorded as a fee straight to Xero.
For small businesses using Xero, signing up for GoCardless solves late payment, cash flow and reconciliation issues with one simple integration. Your customers will thank you for providing such an easy way to settle invoices by Direct Debit.