A Guide to Xero Batch Processing

What is Batch processing?

Batch processing payments is a financial process that enables multiple disparate payments to be prepared and paid in one run. For example, using a batch file which can contain numerous payments intended for one or multiple suppliers. 

Batch processing is a popular method for disbursing payments to suppliers and managing payroll. These payments are often automated and scheduled for specific times, such as at the end of the month. 

This method can be beneficial to finance teams of any size, as individual payment runs require a greater time commitment, and due to the repetition of the task, can be more susceptible to manual error. When done well, batch processing can increase productivity as it simplifies scheduling, time management, and team coordination.

How to batch PROCESS Multiple payments:

1. Select the invoices or outstanding payments that need to be settled.

2. Have the selection reviewed by a colleague and/or obtain approval from the necessary management or authorised personnel. 

3. Schedule the payment run. 

4. Ensure that sufficient funds are available in the account to cover payments.

5. Reconcile and verify the payments against each corresponding invoice in your accounting system.

6. Send remittances to the recipients to inform them of the payment and provide a confirmation of the purpose behind each payment.

XERO batch payments: A step-by-step guide

1. Open the ’ Bills To Pay’ table and tick the Checkbox of the relevant bills that you wish to batch process.

2. When all bills are selected, click on ’ Make Payment’ to add them to a new batch payment.

3. Using the drop-down menu in Xero, select the bank account from which you want to record the payments.

4. Select your payment method from the drop-down menu. Options are currently limited to ‘Create a payment file’ and ‘Mark as paid.’

5. Click on ‘Create Payment’ to process the batch payment

How Can I BATCH-PROCESS foreign bills to pay in Xero?

Regrettably, as of October 2023, foreign batch payments are not supported by Xero. Now, any user who makes international payments will have to process each one individually or find a suitable app that connects to Xero. 

This is a time-intensive, manual process as users will have no choice but to enter each bill one by one in Xero or wait for the following day to simplify the process via the bank fee. In any scenario, a user exclusively operating in Xero will experience delays and spend unnecessary time handling foreign invoices.

An Automated Solution for Xero batch payments

How HedgeFlows bridges the gap

HedgeFlows is a certified Xero integration that automates remittance transactions for invoices in all currencies. HedgeFlows ensures efficient and effortless transmissions to recipients and restores the efficiency that has been lost by the removal of a foreign batch payment option.

To batch-process foreign bills with HedgeFlows simply select the multi-currency invoices you want to pay and schedule your payment run. Then let us know how you would like to fund the payment run and whether you need to buy any foreign currency for it. 

Once we have received your instructions, and verified that sufficient funds are held in your HedgeFlows account, the process will be completed automatically within a matter of seconds. 

HedgeFlows offers a seamless integration solution for anyone handling batch payments in Xero. This includes support for multi-currency transactions such as international batch payments and collections, and automated reconciliation processes.  Take 2 minutes to watch how HedgeFlows simplifies multi-currency payment runs for Xero invoices:

Do you have more questions on how to run Xero batch payments with HedgeFlows? Check our help page or get in touch.

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Frequently Asked Questions about Xero Bulk Payments

What is a bulk payment?

A bulk payment is a feature that empowers businesses to efficiently settle multiple invoices or bills for various recipients, whether in domestic or multiple currencies, all in one go. This streamlined process not only saves time but also enhances financial efficiency

How do bulk payments benefit small and medium-sized enterprises (SMEs)?

Bulk payments offer SMEs efficiency and convenience by reducing the time and effort spent on individual payments. This can improve cash flow management and simplify financial operations.

How do I send my first Xero bulk payment?

To initiate your first Xero bulk payment, you’ll need to set up your bank accounts in Xero, select the bills or invoices you want to pay, choose the payment method, and verify the payment details before finalising the bulk payment.

How should I choose a payment method?

Xero offers various payment methods, including bank transfers and online payment platforms. The choice of payment method will depend on the recipient’s preferences and the payment’s urgency.

Can I make bulk payments in different currencies using Xero?

Xero currently lacks support for bulk payments in foreign currencies. However, you can seamlessly address this limitation by harnessing the power of tools like HedgeFlows, which enable you to efficiently process bulk payments in Xero across a wide range of currencies.

Is there an additional cost associated with using Xero bulk payments?

As well as the price of Xero’s software, additional costs, such as transaction fees, may apply depending on your choice of payment method and the agreements you have with your bank. This is particularly true of foreign bulk payments, where you may be surprised by hefty bank fees.

Can I schedule recurring bulk payments in Xero?

Yes, Xero allows you to set up recurring bulk payments, which can be especially helpful for regular bills or payroll. Scheduling your bulk payments can improve vendor relationships, as well as save you hassle at month’s end. 

What if there is an error in a bulk payment transaction?

If an error occurs, Xero provides options to amend or void the payment, ensuring you can rectify mistakes promptly. An integration can reduce the risk implicit in manual data entry and unscheduled bulk payments.

How does Xero handle reconciliation when I make bulk payments?

Xero automatically reconciles bulk payments with the corresponding bills or invoices. This reduces manual effort but may cause problems for foreign and bulk payments. Xero relies on exchange rates from XE.com, but when foreign currency invoices are eventually settled from your local currency account, Xero payments will employ actual exchange rates. This results in unrealised gains or losses which are magnified by the scale of bulk payments.

Is it possible to track the status of bulk payments in Xero?

Yes, Xero provides a tracking feature, allowing you to monitor the status of your bulk payments and ensuring you stay informed about payment progress.

Are there any issues I should know about using Xero in this way?

While Xero bulk payments offer significant advantages, it’s crucial to be aware of potential bank transaction limits and associated fees to plan accordingly. From October 2023, Xero no longer supports batch processes for foreign currencies, a change that will affect bulk payments on the platform. Users making international payments must now individually process each transaction which will entail delays, manual errors, and additional time spent.

Can I automate my bulk payments with an integration?

Yes, Xero offers integrations with various apps and software that can automate bulk payments, providing even more convenience and efficiency. The Xero app store lists excellent reviews for HedgeFlows, the smart solution that helps SMEs and mid-market enterprises manage every aspect of their treasury operations including bulk payments. 

Can I use Xero bulk payments on a mobile device or tablet?

Yes, Xero is mobile-friendly, making it convenient to manage your bulk payments on the go through the Xero app or a mobile browser. HedgeFlows also has a mobile-friendly interface, letting you manage and approve invoices on the go. 

What is the future of bulk payments?

The future of bulk payments is characterised by fintech solutions that streamline and improve how businesses navigate accounting software like Xero. Learn more about HedgeFlows, the automated solution that lets you handle Xero bulk payments anywhere, in any currency with ease.