GoCardless for Xero enables businesses to collect & reconcile payments in a more streamlined way. However, in some instances, businesses also pay their suppliers via GoCardless and accounting for different expenses in Xero can be confusing based on the information on the transaction.
As we want to take the pain away from the process of using GoCardless, both as a business and as a customer, we have put together this guide that will help you reconcile payments collected via GoCardless.
Please note that this only applies to organisations using our services on a Standard package, as on Plus & Pro, the name of the organisation you’re paying is displayed on your bank statement directly.
- If there is a Direct Debit mandate reference displayed on your bank statement/in your bank feed
If your bank statement shows the mandate reference for the payment, you can create a bank rule in Xero to pick up on this reference and allocate the payments correctly. This way, payments collected under that same Direct Debit mandate will be attributed to that particular category selected in your bank rule.
- If the Direct Debit mandate reference is not displayed on your bank statement but the payment amount is the same for each payment to the same organisation
If the amount that you are being charged is fixed, you could create a bank rule in Xero for the specific amount you are being charged. Please note that if you are paying different suppliers the same fixed amount, this method would not be suitable.
- If the Direct Debit mandate reference is not displayed on your bank statement and the payment amounts vary
All payments collected via GoCardless are submitted against a unique mandate reference. However, unfortunately some banks don't display this information on their bank statements.
If your bank does not display the unique mandate reference on the transaction, in order to keep track of your payments you would need to look out for the email notifications that we send out or speak with the organisation you are paying directly and then manually account for these payments in Xero.
For more information on how to create bank rules in Xero, click here.