Xero and Modulr have partnered up to make accounts payable easier – including by consolidating multiple payments to the same beneficiary
Accounting software provider Xero is partnering up with embedded payments platform Modulr to help make it simpler and more secure for businesses to automate their accounts payable (AP) function.
Often considered to lag behind other areas of business accounting and finances, accounts payable and accounts receivable are the beating heart of a business’ day-to-day comings and goings – but disparities in platforms and terminology, manual processes, and convoluted ways of working make it harder for small firms to pay their bills and to get paid.
Xero and Modulr’s partnership will enable payments to be processed on their own or in a batch, meaning inefficiencies can be removed when handling high volumes of transactions. Where there are multiple payments being made to the same beneficiary, the partnership will see them consolidated into a single payment, saving businesses and their accountants time and reducing transaction costs. In a statement, the two companies say it is a “unique” benefit.
It will be a boost for small-and-medium-sized businesses, in particular, who choose to make use of Xero and Modulr’s joint solution. The lifeblood of most economies, small firms are often on the sharp end when it comes to cash flow challenges.
Reconciliation ‘done automatically’ with Xero and Modulr
Darcie Robinson, Head of Operations at Accounts and Legal, outlines the problems that many firms face: “Using the traditional approach, we might see 10 payments to six different suppliers had been made by a client, but whoever was doing the bookkeeping couldn’t see what those 10 payments were for. With Modulr’s integrated payment technology through Xero, everything is linked so all that reconciliation is done automatically. The time spent on admin tasks has been reduced from two hours to 30 minutes. It’s so impressive.”
Steve Bradford, MD of Channel and Strategic Partnerships at Modulr, continues: “Small businesses, accountants and bookkeepers across the UK trust Xero with their numbers. This exciting partnership between Modulr and Xero offers them faster, more streamlined payment processes, richer client insights and automated workflows. On top of that, they’ll benefit from our payment consolidation feature, making this integration a truly one-stop-shop solution.
“Modulr’s mission is to unlock the embedded payment opportunity for every business and this integration with Xero is the next stage of our journey – transforming how accountants and SMEs make and manage payments, whilst enabling firms to make better informed decisions from insights on cash flow and business performance.”
