Getting paid on time can be a bug bear for many companies – no matter their size or where their payments are flowing from. Late payments mean potential problems with cash flow further down the line. And if it’s an ongoing problem, it can have serious consequences for business health. Much has been said about the impact of late payments on small businesses, as they are often working within tight financial constraints. But what about larger enterprises?
You may think that it’s easier for them to deal with late payments, or that the impact is not as great because of their size. However, in reality it causes issues just like it would any business. With this in mind, Xero sought to ease the burden of late payments and better connect small businesses with those larger suppliers.
Enter Xero Enterprise Connect. It is a platform that delivers supplier bills and invoices directly into a Xero account, eliminating the need for manual data entry. It allows for seamless and simple invoicing, so businesses get paid faster, without the errors.
Since its launch, Xero have been seeing some great results. The most impressive? Customers who use Enterprise Connect experience a 44.15 percent reduction in invoice and payment delays, compared with those customers who don’t.
Xero’s internal research shows that before Enterprise Connect, Xero customers were getting paid on average 15 days late. After the integration, the average invoice payment date was two days earlier than the due date.
It’s easier to join than you think. Xero have an open API; so developers can build a connection from the business’s billing system to the Xero platform, quickly and efficiently. You are not alone in this process though. Xero provide online help around the clock, and a community forum for discussion with other businesses.
Connecting large businesses to small businesses is the next step in the evolution of online accounting.
Contact the experienced and professional team at RWK Accountancy to assist your business with Xero!