Xero launches supplier payment analytics tool to support fair payments

By Divya Shah

Cloud accounting platform Xero has introduced a new supplier payment analytics research tool in the UK, helping businesses monitor payment behaviour, improve cash flow management and demonstrate compliance with the government’s Fair Payment Code. 

The new Supplier Days to Pay Detail report provides businesses with a structured view of how quickly supplier invoices are settled, offering greater transparency into accounts payable performance.  

The tool categorises payments into time bands of 0-30, 31-60, 61-90 and more than 90 days, enabling finance teams to benchmark payment practices and identify operational bottlenecks. 

The launch reflects a growing focus across the financial services and FinTech sectors on leveraging data, automation and real-time financial insights to improve working capital efficiency.  

Businesses seeking recognition under the UK’s Fair Payment Code are required to provide evidence of supplier payment performance, a process that has traditionally relied on manual spreadsheet calculations and data exports. 

By automating payment-time analysis, Xero aims to simplify compliance while providing finance teams, accountants and bookkeepers with actionable insights into supplier payment trends. The report was developed in collaboration with the Office of the Small Business Commissioner and following feedback from bookkeeping professionals who required faster ways to assess payment performance for clients. 

The launch also addresses a broader challenge facing small businesses. According to Xero Small Business Insights data, UK small businesses waited an average of 29.1 days to receive payments during the June quarter, with invoices being paid an average of 8.3 days beyond agreed terms. 

Delayed payments can constrain liquidity, disrupt supplier relationships and create cash flow pressures across supply chains. 

From a FinTech perspective, the report represents another step towards embedded financial intelligence within accounting platforms. Rather than serving solely as bookkeeping tools, modern accounting solutions are increasingly evolving into data-driven financial management platforms that provide businesses with real-time visibility into payables, receivables and cash flow performance. 

Kate Hayward, UK Managing Director at Xero, said businesses were showing greater interest in monitoring payment performance and improving payment practices. She noted that the company viewed prompt supplier payments as a critical component of a healthy small-business ecosystem and encouraged wider adoption of the Fair Payment Code. 

The Supplier Days to Pay Detail report is the first in a planned suite of four payment-performance analytics tools. Xero said it intends to launch additional reports focused on customer payment behaviour and average payment trends for both suppliers and customers, further expanding visibility across the entire cash flow cycle. 

The initiative highlights how FinTech and accounting technology providers are increasingly using automation and analytics to help businesses strengthen financial operations, support regulatory and compliance requirements, and make more informed working-capital decisions. As organisations seek greater transparency over cash movement and payment practices, data-led reporting tools are becoming an important component of modern financial management.