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manual if using older accounting software and therefore stressful . Switching to the cloud was life changing , but Fred Aldous was still using an external payment platform to manage payments . Fred Aldous ’ accounts payable team manages two payment runs per week to more than 200 suppliers across the UK and Europe , therefore it has a large network of supplier relationships to maintain .

Because of the number and scale of payments , there was no cash in reserve in case of errors . They would break each payment down into smaller amounts to avoid running into security checks that could slow payments down , disrupt cash flow and put a strain on the team . Getting those payments wrong could mean missing shipments of key products or damaging relationships they have held for more than 60 years .

Catering to the changing payments landscape

Another changing tide that Fred Aldous has had to ride is the shift towards digital payments . The high street presence of the business means cash is still important in its operations – around 30 % of consumer transactions are still completed with physical money . But the business has witnessed a movement towards contactless payments via smart phones and smart watches over the last few years , encouraging it to upgrade its till systems and offer more diverse payment options .

Recognising and adapting to how customers want to pay has been core to remaining relevant and retaining customers . No matter how customers choose to pay , they can now opt to receive an email receipt and it ’ s much easier to track shopping behaviour analytics and improve the seamless interaction with customers .

Investing in software for the future

Understanding the importance of sustaining relationships with suppliers but also streamlining how it manages its finances , Fred Aldous made the switch from manual accounting to an accountancy software platform . With longevity in mind , it selected Xero .

This transition to Xero proved to be a pivotal decision for Fred Aldous , offering a range of features that significantly improved its financial management processes . One particular aspect that stood out was the platform ’ s innovative approach to handling payments .

Having Xero ’ s bill payments feature in place has made it a lot easier to make payments . The business is now able to make batch payments for suppliers directly from Xero , saving significant time and effort in setting up , managing and reconciling payments .

When you ’ re a small business , every second counts . And the time saved from using open banking has allowed the business to improve its cash flow by paying consistently and negotiating better payment terms with many of its suppliers . Using Xero to manage supplier payments has not only saved hours and hours on an almost daily basis , but also allowed the business to build stronger relationships directly with its suppliers – some decades old – by figuring out how best to work with them .

Paul Walker , Co-owner of Fred Aldous , said : “ Having the right technology in place means we ’ ve been able to build a system that makes sure we ’ re feeding back to suppliers and having good communication about what ’ s going on , no matter how small . It gives the supplier confidence in us and also clarity on when we pay . In Xero we can see everything now , not just what ’ s coming in and going out , and that ’ s hugely important for navigating the business . I can see what our position is at any point in the day , and if there ’ s anything that needs attention .”

Walker spoke further to Intelligent SME . tech about the partnership .

Which features on the Xero platform stood out to you ?

Any of the time-saving features Xero has introduced make a huge difference for us every day . They are often based on customer suggestions , so are aligned with what a small business owner actually needs to run their business smoothly . For example , we work with nearly 200 suppliers and features like the auto-extraction of bank details from invoices

ANOTHER CHANGING TIDE THAT FRED ALDOUS HAS HAD TO RIDE IS THE SHIFT TOWARDS DIGITAL PAYMENTS .

Intelligent SME . tech

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