Telleroo have launched their new direct integration with Xero for bill payments! Here’s our review.
Firstly, what is Telleroo?
Telleroo provides instant bulk payments with approval processes. It is a banking system suitable for finance teams with more than 30+ payments a month. It comes with a separate holding account in the name of the client that can be used for all bank transactions. You can hold and receive funds directly into a Telleroo account.
Accountants can work with Telleroo in two ways:
1. Schedule payments for approval
You can use Telleroo to take the burden off your client in scheduling payments to employees, suppliers, customers or partners. Crucially you:
a) Do not have control over the client’s funds in their Telleroo bank account.
b) Can set your user settings so that you do not have authority to approve payments.
2. Setup and support finance teams
You can help clients with in-house finance teams to setup and use Telleroo, charging for your expertise in assisting them and any ongoing support they might require.
How does it work?
- Invite clients to Telleroo with relevant permissions.
- Start setting up pay runs by pulling in records from Xero, importing from payroll software such as Moneysoft, Brightpay, Paycircle, and others, or uploading CSV data.
- Telleroo validates bank details, flags any suspicious payee changes, and checks for duplicate payments.
- Once you’ve setup the pay run your client will be asked to check and authorise the pay-run, and deposit funds into their Telleroo holding account.
- Once the scheduled payment date is reached payments are sent instantly.
- If connected to Xero this will update the bank feed in real-time so you can match payments.
How is this different to Xero Bacs Payments Files?
You need to have a Bacs facility with your bank to fully take advantage of Xero Bacs payments. Telleroo accepts any regular Bacs payment files without any bank approval needed. They have written a detailed post on how to sign up with Bacs here.
The Xero Bills Integration
Setup the Integration – Bank Feed & Bill Payments
- Select the bills you want to Pay in Xero
Go to Business > Bills to Pay > Awaiting payment and select bills you want to pay
- Click Make payment
Once you’ve selected your bills click ‘Make payment in the table header and confirm the bills to pay
- Configure your payments
..........a) Select your Telleroo account at the Pay from drop down
..........b) Use Mark as paid as payment method
..........c) Choose the payment date you want payments to be released. If you schedule a payment date the payments will be scheduled for 10am on that day. If you don’t set a scheduled date your pay run will be sent instantly after approval.
..........d) Enter the sort code and account number for any supplier where it is not present. This will be saved for the supplier in Xero..If you do not do this then any transactions for a supplier without both a sort code and account number will not be imported:
- Set your payee references
- Submit payments for approval in Telleroo
Once you’re happy with your bills to be paid, click Create Payment in the top right corner. Click Finish and view batch to return to Xero.
- Approval Notice
Virtually instantly under ‘Pay Runs’ a new pay run will be visible and all approvers will be automatically and instantly notified by email. If all of the transactions could not be imported because the sort code and account numbers were missing for every supplier in the pay run the status will show as invalid and you will need to repeat the process in Xero.
- Action Pay Run
Approvals must be made in the Telleroo web browser. Once logged in approvers can navigate to the batch they want to approve, then:
– Cancel specific transactions
– Export the pay run
– Cancel the pay run
– Approve the pay run
Each pay run must be actioned separately, there is no bulk option in order to reduce the likelihood of errors.
- Approved pay run
Once approved the pay run will then send according to the set schedule.
- Bills marked as paid
Your bills in Xero for the batch scheduled will already be marked as paid on the scheduled date.
- Match bank transactions
Your Telleroo Bank feed will immediately contain the transactions which have been paid, with the number of transactions set by your bank feed settings:
These will match the bill payments, leaving you to match them together.
Things to note
- You must have a sort code and account number saved in Xero for the supplier you want to pay, details cannot be changed in Telleroo. Enter your supplier’s full bank account number into the Bank Account Number field, including the sort code. Hyphens or spaces are not required.
- Do not edit a batch file in the Xero Telleroo account.
– If you edit a batch, you will then create a pay run again under awaiting approval.
- If a payment is rejected or a batch is cancelled in Telleroo they automatically update Xero to reflect this.
- Anyone with access to the connected Xero organisation’s bills who can can create pay runs in Xero will be able to create pay runs that sync to awaiting approval in Telleroo
- It is not possible to enable different approvers for different suppliers within the same Telleroo account.
– To facilitate this you’d need multiple Telleroo accounts and you would need to make sure that the correct Telleroo bank account would have to be selected when making payments in Xero.
- Xero deep links.
At the top of the Pay Runs tab you will see 4 Xero tabs which are deep links to those areas of the connected Xero account. There are also indicators for the total value of transactions for each Telleroo status: