ListicleFeb 13, 2026
Best accounts receivable automation software [2026]
7 AR automation tools compared — features, pricing, and who each is best for. From SMS-first to enterprise-grade.
Read articleXero's built-in reminders are a starting point, but they won't cut it once you're chasing more than a handful of invoices. We compared the top Xero-compatible add-ons for invoice collection (features, pricing, and real trade-offs) so you can pick the right one and get paid faster.
“I’ve been trying to configure an invoice template for use in my services business. I keep running into barriers with the invoice fields and placements being too limited.”
– Reddit user on r/Xero
“They tried Xero’s automated reminders to cut down the workload. It helped a bit, but they quickly hit limitations.”
– Reddit user on r/Xero
Get AI Summary
Xero is excellent accounting software, but its built-in invoice reminders have real limitations. Most Xero users who outgrow the basics hit the same walls.
Xero reminders are limited to email. With email open rates around 20%, many reminders go completely unseen. SMS has a 98% open rate.
You get three automated stages and that's it. No ability to build multi-step escalation sequences that adapt over time.
The same reminder template goes to every client. No way to tailor tone or timing for different customers or invoice sizes.
No visual flow builder, no conditional logic, no ability to vary timing based on how overdue an invoice is.
A dedicated Xero invoice reminder app solves these problems by adding SMS, multi-step workflows, and smarter automation on top of your existing Xero setup. Below, we break down the five best options for 2026.
Ranked by value for small-to-medium Xero users. We evaluated each tool on reminder capabilities, SMS support, Xero integration quality, pricing transparency, and ease of setup.
SMS-first invoice reminders with real-time Xero sync
ChaseBot is purpose-built for Xero users who want to get paid faster without the hassle. It takes an SMS-first approach to invoice collection, pairing text messages with email reminders in automated sequences you design with a visual flow builder. It syncs with Xero in real-time, so reminders stop automatically the moment a client pays. Setup takes about two minutes.
AR automation with late fee support for Xero & QuickBooks
Paidnice is a well-established Xero add-on that won Xero's 2025 Small Business App of the Year. It offers a broad feature set: email and SMS reminders, automatic late fee application, a customer self-service payment portal, and statement generation. SMS is available but costs $0.10 per message on top of your plan price.
Enterprise credit management and collections for Xero
Chaser is a full-featured credit management platform that goes well beyond simple invoice reminders. It offers email, SMS, and even auto-calling, plus credit checks, risk scoring, payment prediction, and an outsourced collections service for truly delinquent accounts. It integrates with Xero and is particularly popular with UK-based mid-size businesses.
Simple, no-frills invoice chasing for Xero
Debtor Daddy is a straightforward Xero add-on focused on one thing: sending automated email reminders for overdue invoices. It doesn't try to be a full AR platform. If you just need basic email reminders without the complexity of a larger tool, Debtor Daddy keeps things simple. It lacks SMS support and advanced features, but that simplicity is its appeal for some users.
Free invoice reminders included with every Xero plan
If you already use Xero, you have basic invoice reminders built right in at no extra cost. Xero lets you set up to three automatic reminder stages with customizable email templates. It's a reasonable starting point for very small operations, but businesses with more than a handful of invoices quickly find the limitations frustrating: email only, no SMS, same template for every client, and no smart escalation.
A quick side-by-side to help you narrow down your options. For deeper analysis, read the full reviews above.
| Tool | SMS | Free Tier | Late Fees | Auto-stop | Price From |
|---|---|---|---|---|---|
| ChaseBot | Included | Yes (5/mo) | No | Yes | Free |
| Paidnice | $0.10/each | No | Yes | Yes | $39/mo |
| Chaser | Available | No | No | Yes | Contact sales |
| Debtor Daddy | No | No | No | Yes | ~$15/mo |
| Xero Reminders | No | Yes | No | Yes | Free |
Pricing and features accurate as of February 2026. For detailed head-to-head comparisons, see ChaseBot vs Paidnice, ChaseBot vs Xero Reminders, and ChaseBot vs Chaser.
The best tool depends on your situation. Walk through these questions to find your match.
If your clients consistently ignore email reminders, SMS changes the equation. With a 98% open rate, text messages get seen within minutes.
Volume determines whether per-invoice pricing will hurt. ChaseBot's flat rate shines at higher volumes, while Xero's built-in reminders are fine for a handful.
If automatically applying late fees to overdue invoices is a priority, that narrows your options considerably.
Budget constraints matter. Here's how the options stack up at different price points.
If you're dealing with credit risk assessment, debtor management, or need an outsourced collections service, you need a heavier tool.
Quick summary: For most Xero users who want SMS + email reminders with minimal fuss, ChaseBot is the best value. If you need late fee automation, go with Paidnice. If you need enterprise credit management, Chaser is the choice. If you send fewer than 10 invoices a month, Xero's built-in reminders may be enough to start.
Not all Xero add-ons are created equal. These are the features that actually matter for getting invoices paid.
Two-way sync ensures your add-on always has the latest invoice statuses. When a client pays in Xero, reminders stop instantly. Without real-time sync, you risk embarrassing duplicate reminders.
Email alone has a ~20% open rate. Adding SMS to your reminder workflow dramatically increases the chance your invoices get noticed and paid promptly.
When an invoice is marked as paid in Xero, reminders must stop automatically. This is non-negotiable. Manual tracking defeats the purpose of automation.
A drag-and-drop sequence builder lets you see your entire reminder workflow at a glance. Much easier than configuring rules in settings menus.
Watch for per-invoice caps and hidden SMS fees. Flat-rate pricing lets you budget accurately as your invoice volume grows.
The best Xero add-ons connect via OAuth and start syncing in minutes. If a tool requires weeks of implementation, it's probably overkill.
These are the pitfalls that cause Xero users to pick the wrong tool or give up on automation entirely.
Xero's built-in reminders are fine for getting started, but if you're manually following up on overdue invoices every week, you've outgrown them. The time you spend chasing payments is worth more than $29/month.
Professionalism matters, but so does getting paid. A well-worded SMS is perfectly professional and far more likely to be read. The best approach combines both: email first, SMS for overdue escalation.
A $15/month tool that only sends emails may seem cheaper than a $29/month tool with SMS. But if SMS reminders get you paid 10 days faster on $50K in receivables, the ROI is immediate.
Some tools advertise low starting prices but cap your invoices. If you send 80 invoices a month, a plan capped at 20 will push you into a much more expensive tier.
Dive deeper into Xero invoice automation with these guides.
Step-by-step guide to setting up automated reminders in Xero and beyond.
Read moreBroader comparison including non-Xero tools like HighRadius and GoCardless.
Read moreEverything you need to know about Xero's built-in reminder system.
Read moreDetailed head-to-head comparison of the two most popular Xero add-ons.
Read moreWhy businesses upgrade from Xero's built-in reminders to ChaseBot.
Read moreComparing a lightweight SMS-first tool with an enterprise credit platform.
Read moreChaseBot sends SMS + email invoice reminders on autopilot, syncs with Xero in real-time, and stops the moment your client pays. Set it up in 2 minutes.
Try ChaseBot free7 AR automation tools compared — features, pricing, and who each is best for. From SMS-first to enterprise-grade.
Read articleCopy-paste email templates for every stage of the collection process — from friendly pre-due nudge to final notice. Free to use.
Read articleStep-by-step guide to setting up Xero's built-in reminders — and how to go beyond its limits with SMS, smart scheduling, and auto-stop.
Read article