Why we recommend GoCardless with Xero for PBSA and BTR businesses

Want to streamline your Direct Debit payments? Meet GoCardless, a Direct Debit payment system that integrates seamlessly with Xero. A great PBSA/BTR asset!

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Why we recommend GoCardless with Xero for PBSA and BTR businesses

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If you're a property manager or landlord in the PBSA or BTR industry, you are always looking for new ways to streamline your accounting processes. In today’s blog post, we will introduce you to GoCardless, a Direct Debit payment system that integrates seamlessly with Xero. 

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What is GoCardless used for? 

GoCardless offers an easy and cost-effective way for businesses to collect payments on a recurring Direct debit basis without requiring customer action. 

GoCardless also provides payment scheduling, tracking, and reporting features to help streamline payment collection and reconciliation processes. 


What are the types of GoCardless payments? 

GoCardless processes Direct Debit and SEPA  (Single Euro Payments Area) mandate payments, which are payments collected from customers on a recurring basis, such as monthly or annually. 

Direct Debit has two types of payments: fixed and variable. Fixed payments are set up for a specific amount and frequency, while variable payments can vary in amount and frequency.  

GoCardless also supports single payments for one particular product or service. 

What is the difference between a standard Direct Debit and a SEPA mandate? 

A standard Direct Debit is a payment method that is widely used in the UK and other countries. It allows businesses to collect payments from customers on a recurring basis without requiring the customer to take any action.  

A SEPA mandate is used for Direct Debit payments within the EU and other SEPA system countries. 

The main difference between a standard Direct Debit and a SEPA mandate is that the latter has additional requirements for the information that needs to be collected from the customer, such as their IBAN (International Bank Account Number) and BIC (Bank Identifier Code). This information is necessary to facilitate cross-border payments within the SEPA system.  

Additionally, SEPA mandates' rules and regulations differ from those of standard Direct Debits, which can require additional steps for businesses to set up and manage. 


Can GoCardless accept international payments? 

GoCardless can accept international payments through its SEPA (Single Euro Payments Area) and BACs (Bankers' Automated Clearing Services) payment schemes. These payment schemes allow businesses to collect payments from customers in the UK, the EU, and a few other countries that are part of the SEPA system. 

However, it's important to note that the payment process and requirements for international payments differ from domestic payments, and businesses may need to comply with additional rules and regulations. 

Additionally, international payments may come with additional fees and longer processing times than domestic payments. 

It's always a good idea to check with GoCardless and your bank to ensure you have the information and requirements for international payments. 


How do I collect payments from GoCardless? 

To collect payments through GoCardless, you first need to set up an account with them and create payment plans for your customers. These payment plans will specify the amount, frequency, and duration of the payments you wish to collect. 

During the sign-up process, the GoCardless API produces generic payment links, making it easier to automate student onboarding at an already busy time of year. The system also automates notifications for staff and clients, so you don’t have to remember to create critical financial reminders. 

Once a customer has signed up for a payment plan, GoCardless will automatically collect the payments from the customer's bank account on the agreed-upon dates. The funds will then be transferred to your GoCardless account, from which you can transfer them to your bank account. 

GoCardless provides tools and features to help manage payments, such as payment tracking and reporting. They also integrate with accounting software like Xero to streamline payment collection and reconciliation processes. 


Is GoCardless safe? 

Yes, GoCardless is considered a safe and secure payment provider. They use industry-standard security measures and comply with strict data protection regulations to ensure the safety of their customers' payment data. 

GoCardless is authorised by the Financial Conduct Authority (FCA) in the UK and is a member of the Direct Debit scheme, overseen by the banking industry. They also comply with the Payment Card Industry Data Security Standard (PCI DSS) and encrypt all sensitive payment data. 

It's important to note that while GoCardless takes measures to ensure the safety of payments, businesses are also responsible for protecting their customers' payment information. This includes implementing secure data storage and transmission practices and complying with data protection regulations. 


Benefits of using GoCardless for Direct Debit payments 

As a property manager or landlord, you likely have to deal with many recurring payments - from rent and utilities to maintenance fees and rental deposits. Traditional payment methods can be expensive, time-consuming, and prone to errors. That's where GoCardless comes in - a payment solution that simplifies Direct Debit payments and offers a range of benefits for PBSA and BTR businesses. 

One of the primary benefits of using GoCardless is the elimination of manual payments or invoicing. This makes it easier to collect payments on time and reduces the risk of human error, missed or late payments. 

Another benefit of using GoCardless is the lower transaction fees and charges compared to traditional payment methods. GoCardless charges just 1% per transaction, with a maximum fee of £2, which can help you save on transaction costs over time. Additionally, GoCardless does not charge any set-up or monthly fees, which makes it a cost-effective payment solution for PBSA and BTR businesses. 

GoCardless also offers increased flexibility and control over payment schedules. With GoCardless, you can set up payment schedules that work for your business, tenants, or clients. You can choose the payment frequency and dates, which gives you more control over your cash flow and makes it easier to plan your finances. Plus, if you need to change a payment date or frequency, you can easily do so through the platform dashboard. 


How GoCardless integrates with Xero 

The GoCardless for Xero integration automatically syncs payment data between the two platforms. When a payment is collected through GoCardless, the payment data is automatically sent to Xero, which is reconciled against the relevant invoice. This means that you don't have to manually reconcile payments, which can be time-consuming and prone to errors. 

Using GoCardless for Xero also offers several other benefits for PBSA and BTR businesses. For example, you can set up payment schedules for your tenants or clients and easily track payment statuses in Xero. You can also set up automatic payment reminders to ensure your tenants or clients pay on time. 

Another benefit of using GoCardless with Xero is the ability to generate reports and insights into your cash flow. By tracking your payments and expenses in Xero, you can better understand your financial performance and make informed decisions about your business. 


Our GoCardless-Xero integration top tip 

When GoCardless collects funds from the client, it will trigger Xero to mark an invoice as paid. Ensure you understand how many days it will take before you have access to these funds! 

Most payments settle into your bank account in 5 days, a 5-day delay after your invoice was marked as paid. You will need to account for this correctly. 


Why we recommend GoCardless with Xero for PBSA and BTR businesses 

We love this integration partnership; it’s seamless and easy to set up. But two reasons really make it a top recommendation to our PBSA and BTR clients. 

  1. Customisable API - If you sign up for the pro account, you get API access to build your own integrations and automation, customising your user experience and functionality.
  2. Transaction fees against a parent company - You can choose to have all transaction fees be made to a parent company rather than by each transaction. No matter how extensive your portfolio is, you can easily account for fees by a subsidiary or the parent company. 

Need some help setting up and managing your PBSA and BTR accounting systems? Drop your details into the form below, and we will talk you through our implementation and bookkeeping services. 

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