Accessing finance

Everything You Need to Know About GoCardless

02 January 2020
3 minute read

Alex Woods

These days, technology is everywhere. And as it advances, we are seeing more and more intelligent solutions for businesses, helping to cut down resources and simplify processes. With this in mind, we’re going to take a look at GoCardless – an online tool that enables businesses to collect recurring payments from their customers around the world into a single bank account.

How does it work?

  1. First, you need to decide how you want to connect your business with GoCardless. You can do this by:

  • Connecting your existing software (for example, Sage, Salesforce etc.) to GoCardless where payments will be automatically collected against existing invoices and then reconciled in your accounts

  • Using an online dashboard to create and manage payments for your invoices

  • Building a custom API integration and collecting Direct Debit payments directly through your website or platform
     

  1. Next, you will need to invite your customers to pay your business through GoCardless. They will need to complete a Direct Debit mandate which they can access via an email or a link.

  2. Then, customers will need to complete a one-time Direct Debit form so that your business has permission to collect money from them on agreed dates.

  3. You can then schedule payments  – both one-off and repeat – and collect variable and fixed amounts from the same customer.

  4. Once the Direct Debit mandate is in place, GoCardless is able to automatically collect payments on set payment dates while notifying your customers in advance.

  5. Finally, you can easily view and manage all of your transactions through the online dashboard or your connected platform.

 

What are the benefits?

It provides an end-to-end solution

As GoCardless integrates with your existing software, you can easily connect Direct Debit payments with your accounts, bringing all your data together in one manageable place. 

This means all of your transactions are pulled through automatically, and you can view and manage all of your activity through one seamless experience.

It automatically reconciles your transactions

Connecting your existing software to GoCardless provides the added benefit of automatic reconciliation. As your payment data is pulled straight into your account, you’ll be able to see payments coming in as they happen via your live bank feeds.

Transactions are also automatically reconciled with invoices which means your team can spend less time on bookkeeping!

It improves your cash flow

Most business owners are well aware of how important cash flow is. As GoCardless payments are automatically received and reconciled, you can get a real-time view of your incoming funds and cash flow. As you’ll have increased visibility, your business has more control over what is coming in as well as instant updates on cash flow. 

And when it comes to forecasting, you’ll be able to make accurate future predictions for your business and spot any potential issues well in advance.

It reduces late payments

Late payments can be a huge problem for businesses and cause a lot of disruption. As GoCardless makes the whole payment process as frictionless as possible, your business is more likely to get paid. Once you’ve set everything up, payments are collected automatically from your customers’ accounts which means you’ll receive your funds even if your customers forget. 

You can also track any late payments in real time and even integrate apps to automatically chase your customers!

Next Steps

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