Our Solution: Embedding tax liabilities into aged payables
We introduced a simple but powerful change: recording tax liabilities as entries in the aged payables report within their accounting system. This allowed the client to manage tax obligations with the same structure and visibility as supplier payments.
Key services delivered
- System reconfiguration: Tax liabilities were added as payable items in Xero, making them visible in aged payables reports and enabling automated reminders.
- Tool integration: Leveraged Dext and Xero to streamline invoice capture and payment scheduling, including tax entries.
- Process optimisation: Enabled tax payments to be processed via Xero Bill Payments, simplifying workflows and reducing manual tracking.
- Cash flow planning support: Helped the client incorporate tax obligations into their regular payables cycle, improving forecasting and financial control.
- Training & advisory: Provided guidance on best practices for managing tax entries and using aged payables for compliance planning.
Results & benefits
- Improved compliance: Automated reminders and structured tracking reduced the risk of late payments and penalties.
- Enhanced cash flow planning: Tax obligations became part of the regular financial workflow, improving visibility and predictability.
- Reduced administrative burden: Eliminated reliance on memory and manual tracking, freeing up time for the finance team.
- Streamlined payments: All payments—including tax—could be processed through Xero, creating a unified and efficient payment process.
Client impact
Whereas the client would frequently worry about missing tax deadlines. Now, everything’s tracked and scheduled in Xero. It’s taken a huge weight off their shoulders and made their payment process much more reliable.