The Complete Guide to Xero Invoice Reminders

Xero is one of the most popular accounting platforms in Australia, and for good reason. It handles invoicing, bank reconciliation, and reporting with a clean interface that actually makes sense. But when it comes to chasing overdue invoices, Xero's built-in tools leave a lot on the table.

If you have ever tried to set up invoice reminders in Xero, you know the frustration. The options are basic, the customisation is limited, and the scheduling feels like an afterthought. This guide covers exactly what Xero offers, where it falls short, and how to build a reminder system that actually gets invoices paid on time.

What Xero offers out of the box

Xero does have an invoice reminder feature. You will find it under Settings, then Invoice Settings, then the Reminders tab. From there, you can enable up to three reminder stages, each with its own timing and email template.

Each reminder stage lets you choose how many days after the due date to send the email. You can customise the subject line and body text, and Xero will automatically insert the invoice number, amount, and due date using template variables. You can also choose whether to send reminders for all overdue invoices or just selected ones.

On the surface, this sounds workable. Three stages of reminders with customisable text should cover most situations. But once you start using it in a real business, the cracks appear quickly.

The limitations of Xero's built-in reminders

No pre-due-date reminders. Xero's reminders only trigger after an invoice is overdue. You cannot send a friendly "heads up, this is due in 3 days" message. This is a major gap, because a well-timed pre-due reminder is one of the most effective ways to prevent late payments in the first place.

Only three stages. Three reminders might work for clients who simply forgot. But for chronic late payers, you need a longer escalation sequence. Some businesses need five, six, or even seven touchpoints before escalating to a formal demand or debt collection. Xero caps you at three.

No per-client customisation. Every client gets the same reminder sequence. You cannot send a gentler tone to your best client and a firmer tone to a repeat offender. In reality, different clients need different approaches, and a one-size-fits-all reminder often feels impersonal or inappropriate.

Manual triggering. Xero does not send reminders automatically on a schedule. You need to go into the Invoice Reminders section, review the list, and click Send. If you forget, or if you are away, the reminders do not go out. This defeats much of the purpose of having a reminder system.

No tracking or analytics. Xero does not tell you which reminders were opened, which were effective, or which clients consistently pay late. Without this data, you are flying blind, unable to refine your process or identify problem accounts.

How to supercharge Xero with [ProductName]

[ProductName] was built specifically to fill these gaps. It connects directly to your Xero account using Xero's official API, reads your invoice data in real time, and manages the entire reminder lifecycle for you. No manual clicking, no forgetting, no one-size-fits-all emails.

With [ProductName], you get pre-due-date reminders, unlimited escalation stages, per-client customisation, and full analytics on every reminder sent. It runs in the background, 24/7, and you only get involved when you want to. Your Xero data stays in Xero. [ProductName] reads it, but never modifies your invoices or accounting records.

The result? Fewer overdue invoices, faster payments, and none of the awkward manual chasing. Most businesses see a measurable improvement in their overdue rate within the first two to four weeks.

Setting up automated reminders

Getting started takes less than five minutes. Here is how to set up a complete reminder workflow that runs on autopilot.

Step 1: Connect your Xero account. Sign in to [ProductName] and authorise the Xero connection. This is a standard OAuth flow, the same process you use to connect any Xero add-on. Your credentials are never stored.

Step 2: Choose your reminder schedule. Set up when reminders should go out. A recommended starting sequence is: 3 days before due, on the due date, 7 days overdue, 14 days overdue, and 21 days overdue. You can adjust these intervals at any time.

Step 3: Customise your message tone. Each stage can have its own email template. Start friendly and gradually increase formality. [ProductName] includes professionally written templates out of the box, or you can write your own.

Step 4: Set exclusions. Choose which clients or invoices to exclude from automated reminders. Some businesses prefer to handle their largest clients manually while automating everything else.

Step 5: Turn it on. Once your schedule and templates are set, activate the automation. [ProductName] will start monitoring your Xero invoices immediately and send reminders according to your rules.

That is it. No complicated setup, no code, no ongoing maintenance. The system monitors your invoices, sends the right message at the right time, and stops automatically when the invoice is paid.

If you are using Xero and you are still chasing invoices manually, you are doing more work than you need to. Xero is a great accounting tool, but it was not built to be a collections platform. Let Xero do the accounting, and let [ProductName] handle the chasing.