Avoid late payments with new Direct Debit integration
Xero and GoCardless offer Kiwi small businesses opportunity to avoid late payments with new Direct Debit integration
The new ‘GoCardless for Xero’ payment solution will streamline online payments, and reduce admin time for reconciliation
Auckland, 15 October, 2018 - Xero, the global small business platform, today announced an innovative expansion of its successful partnership with UK-based firm GoCardless to New Zealand. The integration allows small businesses to automate their payment collection and reconciliation via Direct Debit, improving cash flow and reducing business administration.
Late payments are a constant source of stress for small business owners. According to Xero Small Business Insights, Kiwi small businesses using the Xero platform were paid on average 8.3 days late in August 2018, just faster than the annual average of 9.4 days.
Xero’s integration with GoCardless will help to solve these payment problems. 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.
The GoCardless for Xero integration provides a seamless set up experience connecting a user’s GoCardless and Xero account with no additional configuration required. 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.
Craig Hudson, Managing Director - New Zealand & Pacific Islands at Xero, said: “Our data shows that small businesses are experiencing significant payment delays, in some cases, 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.
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.”
Hiroki Takeuchi, Founder and CEO, GoCardless, said: “We're thrilled to be extending our partnership with Xero and joining 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.”