What is TransferWise?
TransferWise is a British online money transfer service that supports more than 750 currency routes across the world. But more importantly, it’s a massive time saver.
TransferWise have partnered with Xero to bring you a quicker, easier and more convenient way to manage payments for your business. With a seamless integration between TransferWise and Xero, you can now pay multiple suppliers at once – dramatically reducing admin time.
In the past, you might have had ten suppliers to pay, and that would mean ten individual payments and ten separate statement lines to reconcile. Using TransferWise, you combat this drain on time by paying these suppliers with one transaction, regardless of which bank you use. TransferWise distributes the money to all of the payees and then the transaction can be reconciled in one click instead of ten!
Pay With TransferWise
Pay with Transferwise is a new “transformative way for UK small businesses to pay bills, no matter who they bank with, reducing time spent paying suppliers and increasing efficiency with seamless reconciliation. We also can now offer instalment payments and foreign currency options with GoCardless to customers via direct debit, helping them grow their customer base”. – Xero
What does it mean for my business?
Some of the major benefits this wonderful addition to the Xero ecosystem brings include the ability to automatically sync your activity for over 40 currencies to Xero. Not only that, pay with TransferWise provides greater visibility, you can effortlessly keep track of transactions. You are able to see the status of payments in Xero, giving you peace of mind that your business has paid suppliers on time. There is also the option to send your suppliers a remittance to ensure that they are aware of the payment.
Duplicate transactions can slow your business down, adding extra work for the accounts department. However, this can all be avoided, TransferWise cleverly prevents duplicate transactions. TransferWise provides you with a standardised way to make UK bill payments seamless, helping you to pay suppliers faster with less risk of mistakes. Furthermore, TransferWise will alert you of any potential errors before a payment is processed, protecting your reputation by reducing the risk of failed payments.
Using TransferWise, new Xero bank accounts can be created in seconds, and connections are secure between TransferWise and Xero, allowing you to handle your accounting instantly. Notably, TransferWise helps your business move away from lengthy processes. There is no longer a need for manual exports and uploads of statements, as the intuitive solution will do this for you.
What is the impact of late payments?
Earlier this year, Xero conducted research into the state of late payments. Tellingly, 48% of invoices issued by small businesses are paid past their due date. That’s why TransferWise and Xero’s colaboration to bring this industry-leading tool to businesses is so important.
28% of Britain’s small business owners say cash flow/management is a key challenge. But this can be combated, being able to quickly and efficiently pay suppliers using TransferWise gives businesses a both reliable and flexible tool.
Sadly, 45% of small business owners feel like they have failed with their business when they are cash flow negative. Businesses can improve their cash flow by introducing solutions, namely TransferWise, to make sure payments are taken care of, ensuring relationships with suppliers stay positive and allowing businesses to benefit from having a good reputation.
Am I one of many?
Xero reported that 26% of small business owners say they would enjoy better physical health if cash flow was not an issue. And, providing cash flow was not an issue, 21% of small business owners would spend more time on their interests and hobbies.
So, claim your time back. You can register for beta testing and find out more, here.