Telleroo harnesses the data in your accounting software to save you time and de-risk client payments. But if you’re looking to automate payments, chances are you’re also automating data capture, approvals and other essential areas of the finance function.
With this in mind, a key question we get at Telleroo is “What processes should we have in place?”
We sat down with Luke Streeter, COO of flinder, to find out how they structure their app stack to ensure payments run smoothly.
flinder leverages automation to provide fast-growing tech clients with an agile finance function. But Luke says the key is “having a clear and standardised process which everyone can follow”.
There are 7 steps in flinder’s process:
– Inbox management in Outlook
– Invoice processing in Dext
– Approvals using ApprovalMax
– Remind clients of approvals using Slack
– Bank rec in Xero
– Discuss what to pay with the client using Xero, Slack & Float
– Suggest payments using Telleroo
Having a clear process allows the team to work efficiently across a large number of clients. Each client may have different needs and bookkeeping schedules (daily, weekly, monthly etc), but Luke says setting the bookkeeping frequency, discussing client needs and agreeing on responsibilities are essential first steps.
Step 1 – Inbox management (Outlook)
Inboxes are managed by the flinder team, answering supplier queries, escalating matters to the wider business and ensuring any invoices are forwarded to Dext for processing.
Step 2 – Invoice processing (Dext)
The team use Dext to process all invoices from client inboxes to Xero, saving time and reducing errors. For clients on a weekly bookkeeping and payment schedule, invoices are typically processed at the start of the week.
Step 3 – Approvals (ApprovalMax)
Where invoice approval is required, ApprovalMax is used. This is typically the case when founders/directors start to relinquish control of day-to-day matters. It’s not often used for smaller clients where the payment approval acts as the final check and approval step.
Step 4 – Remind clients of approvals (Slack)
Slack is used to communicate with clients throughout the process, here it’s used to send a friendly nudge to clients reminding them of any invoices awaiting approval. It’s often found that ‘missing’ invoices from payment runs are a result of unapproved invoices.
Step 5 – Reconcile bank accounts (Xero)
Now that the invoices and receipts are in Xero, and have passed the approvals process, the team will reconcile the bank accounts so they have the most up-to-date information. There is nothing more embarrassing than proposing an invoice for payment that has already been paid!
Step 6 – Discuss what to pay with the client (Xero, Slack, and Float)
Payments are prepared using scheduling functionality in Xero, showing everything that should be paid if cash were unlimited. Next, they check the weekly cash position to see what the client can afford to pay.
The team then sends this info over to the client and has a conversation about what payments to prioritise.
Step 7 – Suggest payments to the client (Telleroo)
Now that the team have clarity on what needs to be paid, the payments are set up and sent to the client to approve and fund. Luke does this directly in Telleroo for the Xero invoice scanning feature, which imports the sort code and account number into Telleroo. Luke says, “This is a key feature that I love as it reduces the risk of errors when paying new suppliers”.
By Rebecca Fowler, Telleroo
Telleroo will be exhibiting at Accountex Summit Manchester on the 19th September 2023 on stand B14.