22 January 2024
2 Simple Tips to Avoid Double Bill Payments in Xero
Paying bills in Xero involves a mix of methods, including:
Auto direct debit payments initiated by your supplier.
Manually payments using ABA files or BPAY via internet banking
*NEW* Automated payments using the 'Planned date' function in Xero (via Parakeet)
While each method has its advantages, using a mix can increase the risk of double payments, especially as the number of suppliers grows. Here's how you can organize your Xero setup to avoid this issue.
Potential Risks of Double Payments
When you’re managing a growing list of suppliers, it’s easy to lose track of which bills are paid via direct debit and which require manual action.
Common scenarios include:
Bills paid via direct debit remain marked as “Awaiting Payment” in Xero, leading to confusion.
This can result in either missed payments or, worse, duplicate payments.
Fortunately, there are simple ways to reduce these risks.
Tip 1: Flag Your Contacts for Direct Debit Bills:
Flagging contacts in Xero makes it easy to identify bills that are paid automatically via direct debit.
How to Implement:👇
Add a note or a specific tag to the Contact Name in Xero (e.g., “Direct Debit”).
When viewing bills in the Awaiting Payment queue, flagged contacts clearly indicate which bills should not be manually paid.
Why This Works:
Reduces confusion about which bills require manual payment.
Easy to implement and highly effective.
Tip 2: Automate Payments for the Remaining Bills
Once your direct debit bills are flagged, you can focus on the remaining bills.
For these, consider automating payments directly out of Xero using the "Planned Date" function via the Parakeet app.
You have 2 options:
Pay manually using ABA files or BPAY in your internet banking.
Pay it automatically out of Xero by using the Planned Date function (via the Parakeet App)
Why Automate with Parakeet?
If you automate your bills out of Xero, you can:
Better control: You can choose to keep or remove direct debit arrangements.
Avoid double payments: Ensures no duplicate payments are made.
Simplified workflows: Eliminates manual ABA downloads and BPAY inputs.
Centralised management: Manage all bill payments (BPAY and EFT) in one place—Xero.
How it Works:
Using the Planned Date function, Parakeet processes payments directly from Xero.
Once a bill is approved:
Payments are made automatically. ✅
No more logging into your bank or toggling between platforms.
It simplifies your bills payment processes to just one click of the Planned Date button.
What Users Say About Parakeet
This automation has been well received by Xero businesses with 5 star reviews in the Xero app store here.
Some feedback...
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Fabulous Product and Services
"I had an amazing experience with this company! The customer service was top-notch, and the product exceeded my expectations. I highly recommend them to anyone looking for quality products and excellent service". - Claire
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Quick AP
“The speed at which Parakeet allows us to pay Bills with Xero has sped up our AP process. No longer having to apply payment, create a batch payment and go through to our bank means we get time back at the end of the week.” - Finance Manager
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Does it suit you?
See how it works and discuss with us first or learn more about it here.
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About Parakeet:
Parakeet is a certified financial services app in the Xero app store that automates bill payments (BPAY & EFT) out of Xero and removes the need for manual uploading of ABA files or BPAY batch files into internet banking.
See Parakeet's Xero App Store listing here.
Learn about Parakeet's automated Bills payment automation (AP) here
For more information, contact: media@helloparakeet.com
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