What is Xero Connect?
Xero Connect is an integration that allows large businesses to send their invoices directly to a small business’s Xero account via a secure integration with the supplier’s billing system.
After invoices are approved, bills are matched automatically in Xero once payment is settled. This new feature could help you save time and eliminate the need for manual entry as it automates the flow of your external invoices into Xero accounting software.
Streamlining the Invoicing Process
In a statement by Trent Innes, Managing Director of Xero for Australia, he mentioned that the main purpose of this new integration is to help small business in simplifying the process of delivering supplier invoices in Xero:
"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."
How it Works?
Xero Connect works in 4 easy steps!
1. You should first connect to your Xero account via the supplier’s online portal.
2. Select your preferences, this includes default account codes.
3. The supplier invoice flows automatically into Xero as a draft bill awaiting for approval. A PDF copy of the bill can also be attached.
4. When the invoice is paid, payment will appear in Xero and is matched to the bill for easier reconciliation.
Meet the Partners
Currently, both Caltex and Reece are the first two large corporations announced to join Xero Connect. Innes also stated that they are still “in talks” with other big organizations that would potentially come on board for Xero Connect:
"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,"
He also added:
"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."
Check out this website to learn more on how you could connect your Reece trade account or Caltex StarCard account with Xero, and visit this blog to learn everything about this new exciting integration!