Simplify your accounts receivable process and encourage faster payments with Xero's automated invoice reminders. This guide walks you through the setup process and provides tips for efficient use.
Why Use Invoice Reminders?
✅ Automated Nudges: Save time by letting Xero track outstanding invoices and send reminders for you.
✅ Custom Scheduling: Set reminders before or after due dates or establish regular follow-ups for long-term invoices.
✅ Enhanced Insights: Monitor sent, opened, and paid invoices and access aged receivables reports at any time.
Key steps to success
- Set up Invoice Reminders in Xero - Configure reminders based on your own business needs (e.g., send a reminder 3 days past the duedate).
- Enable Windcave payments in Xero - Allow clients to make instant payments directly from reminder emails.
- Reconcile Bank Transactions Regularly - Ensure reminders are accurate and not sent for paid invoices, especially if you've recently migrated from NetSuite.
- Mark invoices as Sent Regularly - Only invoices marked as "Sent" in Xero will trigger reminders.
How to Set Up Invoice Reminders
- Login to Xero using a general user account with access to send reminders.
- Navigate to Business > Invoices.
- Click on "Invoice Reminders: Off" to activate the feature.
- Select the checkbox for "Email customers when an invoice is overdue".
- Xero’s default reminders will now send for overdue invoices.
- Customise reminders as needed:
- (Optional) "Include link to online invoice and detail summary": Adds the online invoice link, amount due, due date, and invoice ID in the email header.
- (Optional) "Include a link to the invoice PDF": Includes a PDF copy of the invoice in reminders.
- (Optional) "Don't send reminders for amounts owing on an invoice under": Enter a threshold to avoid sending reminders for small amounts.
- Click Save. Reminders will automatically send for all invoices marked as "Sent".
Additional resources:
- Login into Xero.
- Navigate to Business > Invoices.
- Select the "Awaiting Payment" tab.
Tick the box beside "Number" to select all or specific invoices.
Tip: Adjust the "Showing X items per page" setting at the bottom of the screen to select more invoices at once.
Click "Print" and select "Mark as Sent"
This action downloads all selected invoices as a single PDF file.
Tip: Test this process with a few invoices to avoid printing to a local printer. Ensure "Microsoft Print" to PDF is selected. To do this, Click ctrl+P to show which printer is active. Select 'Microsoft print to PDF' for this action. Don't forget to change this back once done.
All selected invoices will now be marked as sent.
Frequency: Repeat this step regularly (eg. end of week) to keep reminder active.