What are batch payments in Xero?

Batch Payments are a Xero feature that let you run an efficient, straightforward payment run to suppliers covering multiple invoices at once, rather than paying each one individually. They also cut down the risk that comes with re-typing payment details into your online banking software by hand.

In practice, a batch payment lets you:

• Collate all supplier invoices due for payment into a single report.
• Have that report reviewed and signed off by an approver within the business before anything is paid.
• Pay the approved batch either by importing a file directly into your online banking, or using Xero's Pay by Wise (TransferWise) feature.

Why use batch payments?

Save time.

Batch payments speed up paying multiple suppliers each month, cutting the manual effort involved, while still communicating clearly to each supplier which invoices are being paid.

Accurate data.

Because the process includes a review and approval step, and payments export directly from Xero rather than being re-typed into your banking software, the room for manual error drops significantly.

Up-to-date financials.

Once a batch payment completes successfully, Xero automatically updates each supplier and invoice to "Paid", so your financials stay current without extra admin.

Frequently asked questions

Can I review invoices before they're paid in a batch?

Yes. Batch Payments includes an approval step, so a designated approver can review and sign off the batch before any payment goes out.

Does Xero update supplier records automatically after a batch payment?

Yes. Once the batch completes, each invoice and supplier record updates to "Paid" automatically.

Is Batch Payments only useful for larger businesses?

No. Any business paying more than a couple of suppliers each month will save time with it, and the built-in approval step is useful for businesses of any size that want proper oversight of payments going out.

Take the next step

If you'd like help setting up Batch Payments, or getting more generally from Xero, book a call with Sakura.