Modulr has announced a new integration with Xero, which aims to make supplier payments simple, secure, and automated. Modulr offers an embedded payments solution that enables accountants and SMEs from multiple sectors to automate accounts payable within Xero.
The embedded solution will enable organisations to make payments directly from within Xero without using a bank application. Modulr also enables organisations to batch pay items. Enabling organisations that make multiple payments to handle what can be an arduous task quickly and effectively.
Where payments are due to a single supplier, Modulr enables the user to combine transactions into a single payment. It then matches all transactions to that single payment, improving efficiency. Payments are automatically reconciled within Xero, reducing the administration of accounts payable.
For accountants, this means they can automate much of the payment process for customers, for they manage the books. Modulr argues that they can develop chargeable services to help customers automate time-consuming processes. Alternatively, if the service is already outsourced, accountants can take advantage of the automation, potentially reduce client bills, but engage with additional clients.
Through its automation, Modulr also helps organisations make timely payments and avoid missed deadlines and associated late payment fees.
Darcie Robinson, Head of Operations at Accounts and Legal, comments, “Using the traditional approach, we might see 10 payments to 6 different suppliers had been made by a client, but whoever was doing the bookkeeping couldn’t see what those 10 payments were for. With Modulr’s integrated payment technology through Xero, everything is linked so all that reconciliation is done automatically. The time spent on admin tasks has been reduced from two hours to 30 minutes. It’s so impressive.”
Catching up with Sage
Modulr plans to add payroll payments to the integration. This enables accountants and firms to make validated batch payments for payroll runs for the end of the month without having to re-key information.
Back in 2019, Modulr announced that it had partnered with Sage. It was providing Sage Salary and Supplier Payment directly from within Sage Accounts and Payroll products. It is, therefore a little surprising that it has taken so long to add Xero to its integrations.
Modulr also has integrations with Ripple, IRIS and BrightPay and is used by thousands of businesses and accountants. One wonders when it will add QuickBooks to that list.
Steve Bradford, MD of Channel and Strategic Partnerships at Modulr, commented, “Small businesses, accountants and bookkeepers across the UK trust Xero with their numbers. This exciting partnership between Modulr and Xero offers them faster, more streamlined payment processes, richer client insights and automated workflows. On top of that, they’ll benefit from our payment consolidation feature, making this integration a truly one-stop-shop solution.
“Modulr’s mission is to unlock the embedded payment opportunity for every business, and this integration with Xero is the next stage of our journey – transforming how accountants and SMEs make and manage payments, whilst enabling firms to make better informed decisions from insights on cashflow and business performance.”
Enterprise Times: What does this mean?
This could be a welcome solution for many small businesses that face a large volume of supplier accounts or accounts payable transactions. There are also solutions on the Xero App Store, such as Tipalti, which provides AP automation. Modulr is aiming for a similar market, but possibly without the complexity that Tipalti offers. Surprisingly, there does not appear to be an entry on the Xero App Store for Modulr yet.
