Automating invoice reminders in Xero saves time, reduces errors, and ensures timely payments. Here’s how you can set it up:

• Why Automate?
  Manual follow-ups are time-consuming and prone to errors. Automation ensures consistent, professional communication and improves cash flow.
• Steps to Set Up in Xero:
  1. Go to Business > Invoices > Invoice Settings.
  2. Enable Invoice Reminders and choose a schedule:
     • 2 days before due: Gentle pre-due notice.
     • On due date: Payment due alert.
     • 7 days overdue: First follow-up.
     • 14 days overdue: Final notice.
  3. Customize reminder messages with placeholders for names, amounts, and invoice details.
• Advanced Tips:
  • Exclude reminders for specific clients or small amounts.
  • Use AI tools like Mesha’s Marcus to optimize timing and tone based on payment trends.

Quick Comparison: Traditional vs. Automated Reminders

Automating reminders helps streamline payments while maintaining client relationships. Start with Xero’s built-in tools and explore AI for smarter invoicing.

How to Set Up Automated Invoice Reminders in Xero

Accessing Invoice Settings in Xero

Start by logging into Xero. Navigate to the Business menu, choose Invoices, and then click on Invoice Settings. This is where you’ll find all the tools needed to manage your invoice reminders.

Activating and Scheduling Reminders

Within the Invoice Settings, find the Invoice Reminders section. Check the box labeled Email customers when an invoice is to turn on automated reminders. From here, you can set up a reminder schedule tailored to your payment terms:

Customizing Reminder Messages

To personalize the messages, click Edit next to each reminder type. This opens a template editor where you can use placeholders to automatically insert customer names, invoice numbers, and amounts. Adjust the tone of your message depending on the urgency and include payment instructions for clarity.

To make reminders more effective, review client responses and adjust the timing or wording as needed. You can also set a minimum invoice amount to avoid sending reminders for minor balances. For a more tailored approach, customize reminders for specific clients or invoice values.

Setting up these reminders helps streamline your invoicing process while keeping communication professional and consistent. Regularly reviewing and tweaking them ensures they remain effective over time.

How to Manage and Adjust Invoice Reminders in Xero

Tracking Payments and Evaluating Reminder Effectiveness

The Invoices tab in Xero is your go-to spot for keeping tabs on overdue payments and assessing how well your reminders are working. By reviewing client payment behaviors, you can tweak the timing of reminders and figure out the best approach for each client. This kind of analysis helps you fine-tune your automated reminders for better payment results.

Once you spot areas that need improvement, Xero’s tools make it easy to adjust your reminder settings.

Adjusting or Deleting Reminders

To make changes to your reminders, navigate to Business > Invoices > Invoice Settings > Invoice Reminders. From here, you can:

• Change the timing of reminders to better match payment terms
• Edit message templates for a more tailored tone
• Add additional reminders to your sequence
• Remove notifications that aren’t needed anymore

Customizing these settings ensures Xero’s automation works efficiently, helping you save time while improving payment collection.

Turning Off Reminders for Specific Clients or Invoices

For clients with special payment terms, you may need to adjust settings. In Invoice Settings, you can set a minimum invoice amount for reminders or switch off reminders for specific clients through individual invoice settings. For important clients, you can create personalized reminder schedules that balance maintaining good relationships with ensuring timely payments.

These adjustments allow you to keep your reminders effective while respecting your clients’ payment preferences.

Avoid late payments: How to set up invoice reminders in Xero

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Using AI Tools to Improve Invoice Reminders

Xero’s reminder system provides a solid starting point, but adding AI tools can take your invoicing process to the next level with smarter, more tailored solutions that go beyond basic email scheduling.

Features of AI-Powered Accounts Receivable Tools

AI billing assistants bring a new level of intelligence to invoice management. They analyze payment trends to fine-tune reminder timing, craft personalized messages based on client history, and adjust strategies automatically for better outcomes. By tapping into each client’s payment habits, these tools make follow-ups far more effective than traditional fixed-schedule reminders.

How Mesha Simplifies Invoice Management

Mesha’s AI billing assistant, Marcus, works with Xero to enhance its features and streamline invoicing. Marcus upgrades the reminder process by:

• Learning client payment patterns over time
• Adjusting reminder timing and tone dynamically
• Automating performance tracking and fine-tuning

Here’s how AI-enhanced reminders stack up against traditional systems:

This smarter approach blends Xero’s reliability with AI-driven insights, creating a smoother, more effective invoicing process. The result? A streamlined workflow that helps businesses collect payments efficiently while keeping client relationships intact.

Simplify Invoicing with Automation

Why Automate Invoice Reminders?

Automating invoice reminders in Xero makes managing accounts receivable easier and more efficient. It helps minimize errors, ensures no invoices are overlooked, and saves time. Plus, it improves cash flow and strengthens relationships with clients.

Now, let’s look at ways to take your invoicing process to the next level.

How to Make Your Invoicing Process Smarter

Xero’s automation features are a great place to start. Set up a reminder schedule, like sending notifications 2 days before the due date, on the due date itself, and at 7-day and 14-day intervals for overdue payments.

Here are some strategies to get the most out of automation:

• Personalize reminders: Tailor messages with clear payment details for different client types.
• Analyze payment trends: Adjust reminder timing based on how your clients pay.
• Keep settings updated: Regularly review and tweak automation settings to stay effective.

Once you’ve got the basics down, you can explore advanced tools. For instance, AI-powered options like Marcus can adjust reminders automatically based on each client’s payment behavior, making collections smarter and more efficient.

Don’t forget to measure your progress – track metrics like how quickly clients pay and how often overdue invoices occur. Use this data to fine-tune your system and achieve even better results.

FAQs

Looking for quick guidance on setting up and managing invoice reminders in Xero? Check out these frequently asked questions.

How do I send a payment reminder in Xero?

To enable reminders, head to the Business menu, select Invoices, click on Invoice Reminders, and switch the setting to ‘On’. Once activated, reminders are sent automatically based on Xero’s default timing. These notifications go to the primary contact and any additional email addresses linked to the invoice.

Can I customize reminder settings?

Absolutely! Xero gives you control over various aspects of reminders, including timing, message content, and more. Here’s a breakdown of what you can adjust:

What are the best practices for Xero reminders?

Follow these tips to make your reminders more effective:

• Use friendly pre-due notices along with timely follow-ups.
• Set minimum invoice amounts to avoid unnecessary reminders.
• Tailor messages to different client groups for a personal touch.
• Explore AI tools like Marcus to automatically adjust reminders based on client payment habits.

These strategies can help you maintain good client relationships while ensuring payments are made on time. For advanced automation, AI-powered tools can further refine Xero’s reminder system by adapting to your clients’ payment behaviors.

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