Xero automates UK supplier payment reporting

Xero has launched a UK reporting tool that shows businesses how quickly they pay individual suppliers, turning transaction data held in their accounts into evidence that can support applications to the Fair Payment Code.

The Supplier Days to Pay Detail report categorises fully paid bills according to how long they took to settle, using bands of zero to 30 days, 31 to 60 days, 61 to 90 days and more than 90 days. Businesses can choose the period they want to assess and export the underlying data.

The report is being rolled out to UK Xero customers this week following work with the Office of the Small Business Commissioner. Until now, businesses wanting to establish their payment performance for a Fair Payment Code application could have to export transaction data and calculate payment times separately.

The Code has three award levels. Gold requires at least 95% of all UK invoices to be paid within 30 days. Silver requires at least 95% of invoices to be settled within 60 days, including at least 95% of invoices from small suppliers within 30 days. Bronze requires at least 95% of all UK invoices to be paid within 60 days.

Applicants also have to demonstrate at least six months of payment performance and provide supplier references. The Office of the Small Business Commissioner assesses that evidence before granting an award, so the new Xero report does not establish compliance by itself. It provides the underlying payment information in a form that can make the application and monitoring process easier to manage.

That distinction is important as payment performance becomes more visible beyond the finance department. Slow settlement can affect supplier relationships and working capital, while businesses seeking recognition under the Code have to demonstrate that stated payment terms are reflected in actual behaviour.

Xero’s own Small Business Insights data illustrates the wider pressure. UK small businesses waited an average of 29.1 days to be paid in the June quarter, compared with 28.8 days in the March quarter. Payments arrived an average of 8.3 days late, up from 8.0 days in the previous quarter but below the 8.6-day average recorded during 2025.

Those figures measure money owed to small businesses rather than the outgoing supplier payments covered by the new report. Together, however, they show why payment timing remains a working-capital concern on both sides of the ledger. A company can face delays in receiving its own money while still being expected to meet agreed terms with suppliers.

The Fair Payment Code currently has more than 800 awardees across its three tiers. Its structure gives companies a way to demonstrate payment behaviour externally, but the same data can also expose deterioration before an application or renewal takes place.

Xero plans further reporting around incoming and outgoing payment behaviour. A Customer Days to Pay Detail report is expected to provide equivalent information on how quickly customers settle their invoices, while summary reporting is intended to show average payment times across customers and suppliers.

Bringing both sides together would give finance teams a clearer view of the difference between when cash is expected, when it actually arrives and how quickly the business pays others. The immediate supplier report tackles a narrower problem: making information already held in the accounting system easier to use when payment performance has to be demonstrated rather than assumed.