Managing Xero disbursements has always been a complex process for accounting firms, with those that try to manually manage their Xero recharging often struggle to keep up—leading to revenue leakage and inefficiencies. That's where Rechargly steps in.
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Simplifying Xero Disbursements with Rechargly
Managing Xero disbursements has always been a complex process for accounting firms. Whether dealing with Xero business plans (Ignite, Comprehensive, etc.) or Xero partner plans (Ledger files, Cashbooks), keeping track of costs and ensuring accurate recharging can be a major administrative burden.
Firms receive two invoices each month—partner plans, which remain relatively stable, and business plans, which constantly change as clients grow. Tracking these changes accurately can be challenging, and without the right processes, firms risk undercharging clients or absorbing costs. While many firms use repeating invoices in Xero to recover these expenses, manually updating them each month is both time-consuming and prone to errors.
The Challenge: Tracking Xero plans manually is inefficient
Xero recommends three approaches for firms to recover their subscription fees:
- Fixed Monthly Fees: Bundling Xero subscription costs into an all-in-one invoice for simplicity.
- Separate Repeating Invoices: Issuing a dedicated invoice for Xero costs to ensure accurate tracking and easier reconciliation.
- Manual Imports to XPM: Using spreadsheets to manually import charges and allocate them to clients.
While these methods provide structure, they have significant drawbacks:
- Frequent plan changes require constant updates to invoices, leading to billing inaccuracies.
- High administrative effort is needed to manually reconcile costs every month.
- Cash flow challenges arise when subscription fees aren’t collected in a timely manner.
Firms that try to manually manage their Xero recharging often struggle to keep up—leading to revenue leakage and inefficiencies.
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