New Xero integration to simplify payments between big and small business
Xero Connect will streamline invoice processes between businesses to help them save time and money.
Cloud accounting software provider Xero has launched a new integration to simplify invoice payments between its large and small business customers.
Xero Connect allows big business and enterprise to send invoices directly to small business' Xero accounting software via a secure integration with the supplier's billing system. After the small business approves the invoice, the bill is matched automatically in Xero when the payment is made.
Managing director of Xero in Australia Trent Innes said the integration is about trying to help small businesses.
"Small businesses spend an enormous amount of time on compliance. Xero Connect is all about trying to streamline some of the processes and allow enterprise organisations to deliver some of their invoices directly to a small business owner digitally. The whole idea behind it that the data is far more accurate and it’s far more timely."
So far, Caltex and Reece have come on board, but Innes says Xero is "in talks" with a number of other potential partners.
"What we did was, we had a look within our systems and saw who the largest organisations were that our small business customers engaged with," Innes said.
"So we had a look at that data and approached them to see if they were interested in helping make the lives of small businesses easier. Obviously, Caltex and Reece were which was fantastic."
"Now that we’ve launched we’re starting to see people approaching us and we’ll continue to approach others as well."
While a number of initiatives have been proposed and introduced by governments and industry groups to reduce payment times to small businesses, Innes believes technology providers such as Xero also play a major role.
"Technology is probably the greatest enabler in bringing down the amount of time it takes to make payments. So, I see our role as super important – we’re a big supporter of the e-invoicing initiative.
"Xero Connect is a step in the right direction but we would love to see it not so much mandated but more strongly encouraged."
The launch of Xero Connect is the next piece in the company's Financial Web, which connects small businesses to banks, payments providers and now corporate suppliers.
"Small businesses tell us their key pain points are the need for real-time financial transparency, better access to capital and cash flow issues,” said Innes.
“We’re committed to solving these problems through our Financial Web. Xero Connect is an addition that aims to ensure high-quality data enters Xero, which gives small businesses a better view of their financial position.”