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, we sought to ease the burden of late payments and better connect our 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, we 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.
Our internal research shows that before Enterprise Connect, our 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.
Another benefit we have seen is that Enterprise Connect drives small business traffic to these larger suppliers. This is because they know that the invoice processing and other functionality will be so much simpler with both parties working on a Xero platform.
As a result, these small business customers have more time to focus on themselves and their business, because paying invoices just becomes so easy. As Z Energy puts it, “if there’s one thing our business customers tell us they need more of, it’s time. Time for important stuff like growing the business – or just having a life”. You can see here what else Z Energy’s business customers are saying about our integration.
Some of the other businesses already using Enterprise Connect include BizRewards/Warehouse Stationery, Meridian Energy, Watercare and PlaceMakers.
It’s easier to join than you think. We 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. We 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. We want to help both parties. By automating the supply chains of a large business, we save them time and money. So they can invest more time in building deeper relationships with their customers.
Large businesses, like our partners, can now interact with more than 300,000 Xero customers in New Zealand through our platform – there’s power in that.