GoCardless for Xero

By Anita Jaynes on 11 January, 2022

Sponsored by Purple Lime

Chasing payments is exhausting. And not only does it take up a lot of your time and mess up your cash flow, but it can also damage relationships with your clients, who are sick of hearing from you every month asking for money. For years now it has just been an accepted part of doing business. Clients will forget to pay on time, and you need to remind them that they owe you money.

But what if it didn’t have to be that way? What if, with just a few clicks, you could collect the money you’re owed directly from your client’s bank account, without them, or you, having to do anything? If that sounds good to you, then you need to know about GoCardless.

What is GoCardless?

GoCardless are a company that collects direct debits for businesses across the world. They are the global leader in account-to-account payments, which makes it easy for businesses to collect recurring and one-off payments directly from their clients’ bank accounts. All customers have to do is sign ae electronic direct debit mandate, and GoCardless takes care of the rest for them.

The service has been around since 2011, but in the last few years has exploded in popularity. So much so that they now provide their services to over 60,000 businesses across the globe. Their packages are incredibly competitive, with prices starting as low as 1% + 20p per transaction, and a limit of £4 charge per transaction. Because it integrates so seamlessly with one of the biggest accounting packages on the market – Xero – it is quickly becoming the only choice if you issue regular invoices but do not want to keep chasing your clients for payments.

How does it integrate with Xero?

GoCardless is designed to be simple and streamlined for both you and your clients, so the process of making and receiving payments becomes a background activity, rather than something that takes up huge amounts of your time. But how does it work?

The process of using GoCardless is incredibly straightforward and integrating it with your Xero account is as easy as 1,2,3.

  • Sign up to GoCardless and select your account type.
  • Complete the GoCardless for Xero online registration form. Once you do this a direct debit account will turn up on your Xero dashboard, and as soon as it does, you will be all set to receive payments.
  • You can set up customers on GoCardless automatically, or you can do it manually if you prefer. It is as simple as sending your customers a request to fill in the online registration form so that they can pay by direct debit.

Once you have GoCardless all integrated with Xero and your customers set up, it is time to start receiving payments! 

  • Payments will be collected direct from your customers’ bank on or soon after the invoice due date and come directly into your bank, and Xero. No more waiting and chasing for payments! Customers are notified 3 days before the payment is due, so they can ensure they have enough funds to cover your invoice.
  • Because GoCardless is integrated with Xero, it can recognise payments and who they belong to. Once you have customers set up and payments coming in, Xero will be able to reconcile everything automatically. You will not have to lift a finger. And the fee for using GoCardless? That will also be automatically reconciled with Xero.

How will it help me?

Predictable cash flow: Cash flow is king in business, and GoCardless is one of the best tools out there for ensuring a predictable cash flow. Because GoCardless automatically collects payments from your customers once the invoice is due, you do not have to worry about customers remembering to pay you on time or avoiding paying your invoices. It just happens. This means you have a steady and predictable cash flow into your business from regular invoices.

No more chasing payments: The average small business owner loses around half an hour every day to chasing unpaid and overdue invoices. That might not seem like a lot, but it adds up to around 10 hours a month (or 120 hours a year) time lost to chasing payments. GoCardless gives you all that time back and helps preserve relationships with your customers. After all, no one likes being chased for money every month, and GoCardless puts a clean stop to that.

Popular with clients: When it comes to paying invoices, most companies will prefer to pay by direct bank transfer and direct debit – especially if it is a regular invoice being paid. Customers would rather not have to manually make payments each month, so GoCardless is a great way to give them their time back and take one thing off their to-do list for them. GoCardless is extremely popular with customers, and its popularity is only continuing to grow.

At Purple Lime we are big fans of automation. We love being able to make our clients’ lives easier and improve their business with smart accounting choices – which is why we recommend GoCardless as the way to manage all of your recurring invoices. We can even help you get set up with the service and integrate it with your Xero account, so you do not have to do anything except enjoy the benefits. If you would like to know more, please get in touch by emailing hello@purplelime.uk.com or calling us on 01249 691360.

Visit Purple Lime online at: www.purplelime.uk.com