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Xero integration offers SMBs direct debit services

15 Oct 2018

Xero has teamed up with a UK-based direct debit provider GoCardless and brought new options for payment collection to New Zealand businesses.

GoCardless’ integration allows small businesses to automate payment collection and reconciliation via direct debit. This, according to Xero, improves cashflow and reduces business administration.

According to Xero’s managing director New Zealand & Pacific Islands, Craig Hudson, the company’s data shows that small businesses experience significant payment delays. In some cases, the delays can be more than double their payment terms.

“This in turn puts pressure on cash flow and, ultimately, the viability of the business. The integration with GoCardless is very exciting as it provides another string in the bow for Kiwi small businesses looking for ways to remove the pain associated with late payments and chasing invoices.”

Xero’s Small Business Insights show that in August 2018 New Zealand businesses were paid an average of 8.3 days late.

The company says its partnership with GoCardless will help solve payment problems.

GoCardless founder and CEO Hiroki Takeuchi says the company is thrilled to join the thriving app ecosystem in New Zealand.

“We see a big opportunity to help Kiwi small businesses take back control of their cash flow and spend more time building their businesses, rather than worrying about reconciliation and late payments. We're already helping thousands of Xero users in the UK and Australia to do just this, and are excited about the opportunity to grow into New Zealand.”

Xero explains how the integration works:

“By using Direct Debit, small businesses can collect payments automatically as soon as they are due avoiding those uncomfortable conversations chasing up their overdue invoices. This in turn makes it much easier to accurately forecast cash flow as business owners know when their invoices will be paid.”

“Once the simple set up is complete and customers have signed up, payments are automatically collected and marked as paid within the Xero account, saving hours of admin time and ensuring accurate data within the accounting platform.”

Hudson adds that the integration can connect a user’s Xero and GoCardless account with no additional configuration.

“Key benefits include the simple onboarding and set up along with auto reconciliation within Xero. This combined with a high level of service and support from the GoCardless team means it presents a positive opportunity for small businesses to flourish. We have seen positive results in both the UK and Australia where this solution has already launched and we look forward to experiencing the same in New Zealand.”