Using Xero and Wise to create an efficient accounts payable department
We outline below the key steps required.
- Integrate Xero and Wise (client will need to create a WISE account)
- Ensure all suppliers on Xero have all correct information e.g., contact details, bank details, customer reference/account no. (for correct payment allocation)
- All due dates are correct for each supplier – KEY TO ENSURE CORRECT PAYMENT TERMS AND PROCESSING
- Merge any duplicate suppliers and general tidy up of Accounts Payable
- Notify all suppliers to email all invoices to relevant Hubdoc email address – THIS IS KEY TO ENSURE ALL INVOICES ARE PROVIDED AND ALLOWS TIMELY DELIVERY
- Agree on a set weekly payment day with client – This will ensure Hubdoc and Xero are up to date by COB of prior day to invoice approval or payment (whichever is the earliest) e.g. A Friday payment date will mean all documentation is published from Hubdoc to Xero by COB on Wednesday to allow approval on Thursday.
- To work effectively and accurately there needs to be only one payment day each week
- Client to upload ALL invoices/credit notes/statements to Hubdoc upon receipt. This is where it is essential for all suppliers to send to Hubdoc direct
- Samera to review all (including failed reads), categorise and publish to Xero for Approval or Awaiting Payment on a regular basis
- Samera to ensure Hubdoc is tidy with all supplier folders regularly monitored and documents filed correctly
- Supplier statements to be filed separately and left in Hubdoc (unpublished) and checked with Xero AP on a weekly basis
- Regular review of Accounts Payable
- Weekly reconcile of Accounts Payable with supplier statement to identify any missing invoices
- Regular bank reconciliation
- All of the above will ensure AP is correct and available for approval and payment
- Client to approve all unpaid invoices
- Client to pay all due invoices as a batch payment on Xero c/o Wise account
- Samera to send remittance advice email
The implementation stage and ensuring all suppliers are emailing to Hubdoc are the key.
This service will only work if the clinic is using Hubdoc correctly.
Further details on WISE and Xero are on the Xero website.
To find out more, check out our Learning Centre, full of articles and webinars covering accounts, tax and finances for dental practices.