A Bacs payment is an electronic transfer of money that is typically used for direct debit payments, salary payments and other transfers. Bacs payments are made via the banking system and usually take up to three working days to clear. Although cheap and widely accessible, Bacs payments aren’t the only option available to businesses looking to make payments. For businesses looking to make payments quickly, bank-to-bank payments can also be made through Faster Payments. Also, errors occasionally pop up if you do a download in the middle of the day.

In your accounting software, look for “Upload a bank file” or similar links to upload the created CSV file. If your business has existing transactions, , you’ll need to bring those account balances from your old accounting system into Xero. We recommend working with your accountant to help you figure this out. If you don’t have a Bacs Service User Number (SUN), you can still download Bacs payment files to submit to Telleroo. All you need to do is add a dummy six digit SUN to your “Payroll Settings”. Regardless of which banking system or Bacs provider you are using, you will need to store your employee and supplier bank account details in Xero.

Do you want to batch pay multiple invoices from the same supplier?

If anyone has issues with their CSV file, please email Supportxerocom with a copy of your file and they’ll be able to sort any problems. I believe there’s a specific format for the first line of the CSV – below the headings – that will allow the opening balance to be uploaded correctly. Having looked in to it a bit further I think they will sit in the intangibles account and be treat as a Fixed asset. In my current system it is treated as a “goodwill” asset, i just want to be sure that this is correct before adding in the balance. Some companies need to pay the same supplier repeatedly, whereas others only have one off payments to make. With Telleroo you can group multiple bills into one group payment using the contact reference.

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At the moment, Xero doesn’t have the functionality to allow you to make a batch payment directly on the platform. Instead, you’ll need to export a batch file from Xero and upload that to your business banking portal to make a payment. We have looked at Xero Bacs payments in more detail and outlined the best options to integrate Xero into your payment process. If your bank doesn’t offer direct bank feeds to Xero yet, let us know and we’ll try and make it happen. In the meantime, you can get your transactions into Xero by setting up a Yodlee feed or importing your statements. They are meant as a thank you so that I keep my business with them.

Direct Credit is the other main Bacs payment type, used by businesses to send money into a bank account. It gives full control to the sender and is often used to manage high-volume scheduled outgoings, from payroll to scheduled reimbursements. A Direct Debit is a type of Bacs payment that lets businesses collect money from a customer’s bank account, with their permission. It’s ideal for recurring payments like subscriptions, rent, or utility bills. For many, especially clients of some banks this will come as a welcome surprise.

If you’re looking for an alternative to Bacs for your business, check out Telleroo today for quick and easy supplier and payroll payments. In order to qualify for Bacs you need to apply for a Service User Number (SUN). This can be a lengthy application process and most banks charge a setup fee of £250+. They run a full due diligence on your business and this may impact your ability to get credit with your bank. It is best to speak to your bank manager to get started with the application for a SUN.

Step 1: Add bills to batch payment

Businesses can do this directly through their bank or by using Bacs-approved software. The system then verifies, encrypts, and queues the payments for processing. A Bacs payment is a bank-to-bank transfer used across the UK for routine business payments. It’s processed through the Bankers’ Automated Clearing Services — a network that handles Direct Debit and Direct Credit. Individuals, businesses and charities in the UK can all use Bacs payments, as long as they have a sterling bank account at a participating bank. With just a few clicks, you’ll have set up and submitted payment instructions to the payer’s bank.

Exporting a Batch File from Xero to Your Bank: Step-by-Step Guide

Names, like ‘Date’, ‘Amount’, ‘Payee’, ‘Description’, ‘Reference’, ‘Check number’ are from the CSV file. So when you create a CSV file with ProperSoft converter and you select the option ‘CSV Target’ as Xero, it will add the header column names to the CSV file. I have voted for this too, and I agree the “Download BACS file” for payroll needs to be changed. We have just over 100 employees and this is a VERY slow process, and takes around 2 hours each month to prepare the RBS Bankline file for import. Currently, the BACS report cannot be imported directly into the RBS Bankline.

• If you don’t have a Bacs Service User Number (SUN), you can still download Bacs payment files to submit to Telleroo.
• Yep, definitely understand that the reconciliation is individual statement lines.
• This makes it a useful tool for businesses looking to manage cash flow more effectively.
• It will always be made clear to you which EMI is providing your payment services.

Then sign in or create an account and link your bank account to receive deposits. Xero accounting software integrates with several payment processors for tap to pay functionality, like Stripe. Tap to pay makes it easy for small businesses to take contactless payments. Payments over tap to pay are secure and fast – the money reaches you in seconds. The most popular method for businesses to send and receive automated payments is Bacs.

• You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
• A Direct Debit is a type of Bacs payment that lets businesses collect money from a customer’s bank account, with their permission.
• When using Xero with Telleroo you can set any Payment date here and we will schedule your payment run for this date at 10am.
• When you click “Make payment” you should be taken to the “Bank” tab.

As you can tell by the length of this piece, you need to think this through before getting started. You need to have a Bacs facility with your bank to fully take advantage of Xero Bacs payments. Any business with less than 500 employees should look into alternatives. Your choice will depend on the number of suppliers that need paying a month, and whether or not you usually have to set up many new suppliers. Telleroo is the best option if you have multiple suppliers or employees to pay.

Say goodbye to the annoying feeling of manual file editing and endless formatting. Discover streamlined payment solutions tailored to your business needs. When using Xero with Telleroo you can set any payment date here and we will schedule your payment run for this date at 10am.

It is probably only worth using Bacs if you have over 500 employees and if you don’t mind slow payment times. With a SUN you can then either sign up with your bank for Bacs, or you can use third party Bacs software such as Accesspay. Once you’ve selected the invoices for payment, click the “Batch payment” button this is how xero bacs payments work and then confirm.

A Bacs payment is a bank transfer that moves money between UK accounts using the Bacs system, typically for payroll, invoices, or recurring bills. Bacs is a type of bank transfer, but it’s processed in batches over three working days. It’s different from Faster Payments or CHAPS, which are quicker but often more expensive. Now you know all there is to know about Bacs payments – including how they work, how long Bacs payments can take, and the pros and cons to consider.