How to automate invoice chasing in Xero (and what Xero can't do)

What Xero's invoice reminders actually do

Xero offers a built-in invoice reminder feature. Here is how it works:

Manual batch reminders. You can go to Business → Invoices → Awaiting Payment, select overdue invoices, and click "Send Reminder." Xero sends a generic email with the invoice attached. You can customise the reminder template, but it is the same message every time.

Automatic reminders (Xero Standard and above). You can set up automatic reminders to send at intervals after an invoice becomes overdue. For example: send Reminder 1 at 7 days overdue, Reminder 2 at 14 days, Reminder 3 at 21 days.

This sounds decent on paper. So why is it not enough?

What is missing from Xero's reminders

No escalation. Every reminder uses the same tone. Reminder 3 sounds exactly like Reminder 1. There is no progression from friendly nudge to firm notice to final warning. In reality, your tone should change as the invoice gets older. A message that is appropriate at 3 days overdue is inappropriate at 30 days.

No statutory interest references. Xero's reminders do not mention the Late Payment of Commercial Debts Act. They do not calculate statutory interest or include compensation amounts. These are powerful tools for getting paid, and Xero ignores them entirely.

No relationship-safe language. Xero's default templates are functional but cold. They read like system-generated notifications, because they are. There is no nuance, no warmth, and no strategic thinking about how to phrase a chase email without damaging a valuable client relationship.

No intelligent stopping. If you use automatic reminders and a client pays between reminder intervals, there is a risk they receive a chasing email after payment has been made. Xero syncs, but the timing is not always immediate.

The emails come from Xero. Clients receive an email from "notifications@xero.com" or similar. It is obvious that you are using accounting software to chase them. This undermines the personal touch that is so important in maintaining relationships.

No visibility into what happens next. Xero does not tell you if the reminder was opened. It does not track responses. There is no dashboard showing which invoices are being chased, which have been opened, and which need escalation.

Xero vs dedicated chasing: a comparison

How to fill the gap

You have three options:

1. Do it manually. Write your own chase emails at each stage, track which invoices need attention in a spreadsheet, and send follow-ups yourself. This works when you have five clients. It does not scale.

2. Use Xero reminders and accept the limitations. Better than nothing, but you are sending the same flat message every time and missing the tools (escalation, statutory interest, personal tone) that actually get invoices paid.

3. Use a dedicated chasing tool that connects to Xero. This is what Owed does. It reads your Xero ledger, identifies overdue invoices, and runs a 4-stage chase sequence that escalates in tone, references statutory interest, and sends in your business name. When Xero marks an invoice as paid, Owed stops chasing automatically.

For the email templates that Owed uses as a foundation, see our template guide. For a deeper look at the chasing process, read how to chase a late invoice in the UK.