Get paid quicker by Direct Debit from GoCardless

A common issue amongst my clients is the time it takes to receive payment from their customers.  One solution to this is direct debit, for most small businesses this has been an expensive service provided predominately by banks.  New players have come into the market making Direct Debit a more affordable option.

One such provider is GoCardless and they make it a simple two click process for customers to sign up and have an equally simple pricing structure.  GoCardless charge 1% of any direct Debit collected with no other hidden charges, it also has no minimum on payment receipts unlike other online payment methods such as PayPal.

So how does it work? There are two methods of Direct Debit collection:

  1. Fixed collection – This is where you collect from customers the same monthly amount.
  2. Variable collection – This is where you want to collect varying amounts of money depending on the amounts your customers have ordered in any given period.

For each method all you need to do is email your customer a link to GoCardless where they will find your own branded payment page and from there they will sign up to the Direct Debit. For Fixed collection you simply wait for the money to start coming in, for the Variable collection you simply log in once a month and update the payment request for the amount required.

By using GoCardless you do not have to hold customer payment information, GoCardless holds of all that information.  Reports are provided detailing failed payments, notification of cancelled payments and confirmation of successful payments.  All information can easily be exported into CSV format if you want to integrate the information further.

GoCardless works great when used with the cloud accounting software Xero, GoCardless integrates with Xero so that you can automatically reconcile payments received.  It also integrates with other accounting packages including Sage.

I recently spoke to a business that LOVES Xero and is now using GoCardless and they could not recommend both Xero and GoCardless enough.  Each month having sent the regular invoices to their customers by email they send out a statement from Xero stating the amount outstanding and a note to say this will be collected automatically by Direct Debit; two weeks later they have the money.

If you would like to find out more about Xero and/or GoCardless please do get in touch.

 

Grant Smith, Partner, Carlisle

If you like this article and would like our FREE updates sent straight to your inbox then subscribe to our monthly newsletter

Subscribe

Get in touch

To find out more about how we can help you or your business, call us on 0808 144 5575 and speak to a member of our team. Alternatively use our contact form to send us a message or arrange a callback.

CALL 0808 144 5575

or

Contact Us

All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW