How to Set Up Xero Invoice Payment Reminders and Why They Help Your Cashflow
- johnry8
- Dec 22, 2025
- 2 min read
Xero has a built in invoice reminder feature that helps you follow up on unpaid invoices automatically. Once set up, Xero sends gentle email nudges to your customers, so you get paid faster without chasing anyone manually.
If you want to free up your time, improve your cashflow and keep your invoicing process organised, this guide will walk you through everything you need to know.
Chasing unpaid invoices is one of the most time consuming parts of running a small business. Automated reminders help you:
Get paid faster
Customers often forget a due date or overlook an invoice. A simple automated reminder brings the invoice back to their attention.
Save admin time
Instead of sending follow up emails manually, Xero does it for you consistently and on schedule.
Improve cashflow
More timely payments mean steadier cashflow, helping you cover expenses, invest in growth and reduce stress.
Stay professional
Your reminders sound polite, consistent and branded even when you are busy or out of office.
To make sure reminders work smoothly:
Add a current email address for each customer in Contacts
Make sure invoices are marked as Sent
Ensure you have an Advisor or Standard user role
Customer replies go to the email address of the person who first turns reminders on and this can be updated
How to Turn On Invoice Reminders in Xero
Xero already provides three default reminder templates, so turning them on is quick.
Step by step Turning on reminders
Go to Sales then Invoices
Click Invoice Reminders Off
Tick Email customers when an invoice is
Choose your additional settings
Include online invoice link and details summary
Include a link to the invoice PDF
Set a minimum amount so reminders only send for invoices above a certain value
Click Save
Xero will now send reminders for all invoices marked as sent.
How to Add Custom Invoice Reminders
Xero allows up to five reminders, so you can tailor the follow up process.
To add a new reminder
Go to Sales then Invoices
Click Invoice Reminders Off or On
Tick Email customers when an invoice is if needed
Click Add reminder
Choose when the reminder should send
Before the due date choose due in
After the due date choose overdue by
Enter the number of days
Use Xero to send a reminder on the due date
Edit the email template if needed and insert placeholders
Click Save
Your new reminder will send automatically for all invoices marked as sent.
When Should You Send Reminders Best Practice
Every business is different, but a common setup looks like this:
Seven days before due date friendly reminder
On the due date polite nudge
Seven days overdue follow up
Fourteen days overdue stronger reminder
Thirty days overdue final notice
Setting up Xero invoice payment reminders is one of the easiest ways to save time and improve your cashflow. After you turn it on, the system works quietly in the background, helping you stay organised and reducing the stress of overdue invoices.