Dext adds payroll to UK payments product for Xero users

Dext has added payroll services to Dext Payments, extending the product for UK customers using Xero.

The bookkeeping software provider has also introduced scheduled payments, credit note handling within payment workflows, and filtering for Direct Debit invoices, broadening a product launched earlier this year.

Customers have processed more than GBP £2 million through Dext Payments since it became generally available. The new payroll function allows businesses, accountants, and bookkeepers to manage supplier, expense, and employee payments on a single platform.

Payroll remains a common service for accountants and bookkeepers, but payments are often handled across separate payroll tools, banking platforms, and email-based approval chains. Dext's approach keeps existing payroll software in place while adding a payment layer within its own system.

Users upload a supported CSV payroll file from their payroll software. Dext then validates employee payment details and flags issues. They can create payment runs, submit them for approval, and either send payments immediately or schedule them for later.

Workflow shift

The expansion reflects Dext's push beyond document capture and bookkeeping automation into broader day-to-day finance workflows. By bringing payment initiation and approval into the same environment as invoice processing, it aims to play a larger role in routine finance operations for small businesses and accounting practices.

Built-in validation, duplicate detection, and Confirmation of Payee checks are intended to reduce errors. Full audit trails and role-based permissions are included to support internal controls and compliance requirements.

Recent additions to the payments product include the option to schedule payment runs up to 90 days in advance. Businesses and advisers can use the feature to plan outgoing payments and reduce last-minute processing.

Credit notes can now be applied directly within payment workflows, removing the need to adjust payment amounts manually. Another update adds enhanced filtering for Direct Debit invoices to reduce the risk of duplicate payments.

Customer base

The payments product, including payroll functionality, is currently available to UK Dext customers using Xero. Support for other general ledger platforms is in development, though no timetable was given.

Dext operates the payments service through a partnership with Airwallex. The arrangement includes Strong Customer Authentication, fraud detection, role-based permissions, and audit trails.

For accounting and bookkeeping firms, the expanded service is designed to make client payment processes more consistent by consolidating supplier, expense, and payroll tasks into a single workflow. For businesses, it provides a single place to pay suppliers, reimburse staff, and process wages.

Sabby Gill, Chief Executive Officer of Dext, said customers had adopted the payments product after launch. "Since launching Dext Payments, we've seen strong adoption from customers looking to bring more of their financial workflows into one place," he said.

He said the addition of payroll expands the product's scope.

"With the addition of payroll payments, Dext Payments becomes a truly complete solution, enabling accountants, bookkeepers and businesses to manage all outgoing payments through a single, consistent workflow. This is a major step towards making Dext the system of record for day-to-day financial operations," Gill said.