How to Stop Chasing Invoices Manually (The $0 Fix)

The invoice went out two weeks ago. No payment. So you write a follow-up: polite enough not to offend, firm enough to actually get paid: and send it. Then wait. Then write again.

If you use Xero, you’ve been doing this manually when the software would do it for you. Invoice reminders are included in every Xero plan. Most people haven’t turned them on.

Why automated reminders work better than manual ones

Manual follow-ups go out when you remember, which is usually later than you meant to, and after you’ve already started to feel awkward about it. Automated reminders go out on time, in a neutral business tone, every single time.

Most late payments aren’t disputes: the client just forgot. A reminder two days before the due date catches most of them before the invoice is ever overdue.

Real example

An electrician in Brisbane had 15–20 outstanding invoices at any given point. He was spending Sunday evenings writing follow-ups. He turned on Xero’s reminders on a Tuesday. Six invoices were paid by Friday. The clients hadn’t noticed the due date had passed: they just needed a nudge.

How to set it up in Xero

1. Log in to Xero
2. Go to Settings, then Invoice Settings, then Invoice Reminders
3. Enable reminders
4. Set your timing: two days before due, on the due date, seven days overdue, and fourteen days overdue covers most situations
5. Edit the email templates to sound like you. Three sentences each is enough.

The setup takes about ten minutes. After that, Xero handles the follow-ups. You only get involved if a client actually disputes something.

Not on Xero?

MYOB has the same feature under Business Settings. Wave (free accounting software) includes payment reminders too. The setup is slightly different in each, but the logic is identical: set the timing once, and the software sends the emails.

For more advanced workflows. SMS follow-ups, escalating to a different contact after 30 days, or integrating with a CRM: see How to Automate Chasing Overdue Invoices.

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This is part of the Zero Dollar Fix series: real business problems, free solutions. Browse all Zero Dollar Fix posts →

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