GuideFeb 12, 2026
Accounts receivable automation: complete guide
Learn how to automate your AR process. Reduce DSO, eliminate manual follow-ups, and get paid faster. Step-by-step for small businesses.
Read article“I'm frustrated with the limitation of 5 reminder stages in Xero. Some of our clients need way more follow-ups before they actually pay.”
– Xero user on r/xero
Xero's built-in invoice reminders are a good start, but most growing businesses quickly hit their limits. This guide covers exactly how to set them up, and what to do when 5 stages aren't enough.
Xero's built-in reminder feature is free and takes about 10 minutes to configure. Here's how to do it step by step.
From your Xero dashboard, click the gear icon in the top right. Under "General Settings", find and click "Invoice Reminders". This is where you'll configure all your reminder stages.
Toggle the master switch to enable reminders. You'll also need to check the box for each contact group you want to receive reminders. By default, reminders are sent to all contacts, but you can exclude specific ones.
Xero lets you set up to 5 reminder stages. For each stage, choose: how many days after the due date to send it, the email subject line, and the email body. You can use placeholders like [InvoiceNumber] and [Balance].
Each stage has its own email template. Keep early reminders warm and friendly, then escalate tone for later stages. Include clear payment details and the invoice amount in every email.
Preview each reminder email to make sure the placeholders resolve correctly. Then toggle each stage to "On". Xero will now automatically send reminders based on your schedule.
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Xero's reminders are better than nothing, but they have real limitations that growing businesses quickly run into.
Some clients need 7-8 touchpoints before they pay. Once you've exhausted Xero's 5 stages, you're back to manual follow-ups.
Xero reminders only send emails. With email open rates around 20%, many of your reminders go unread. SMS has a 98% open rate.
You can only set "days after due date". No time-of-day control, no weekday preferences, no smart scheduling to avoid holidays.
The same reminder schedule applies to all clients (or contact groups). You can't set different rules for a reliable client vs a chronic late-payer.
If a client makes a partial payment, Xero may still send reminders for the full invoice amount. This confuses clients and looks unprofessional.
Xero doesn't tell you which reminders are working, what your open rates are, or which clients need special attention.
Side-by-side comparison of Xero's native invoice reminders versus ChaseBot's Xero integration.
| Feature | Xero Built-in | ChaseBot + Xero |
|---|---|---|
| Reminder stages | 5 max | Unlimited |
| Email reminders | Yes | Yes |
| SMS reminders | No | Yes (98% open rate) |
| Time-of-day scheduling | No | Yes |
| Weekday preferences | No | Yes |
| Per-client rules | Contact groups only | Per-client |
| Partial payment handling | Basic | Auto-adjusts amounts |
| Auto-stop on payment | Yes (full only) | Yes (full + partial) |
| Reminder analytics | No | Open rates, response tracking |
| Setup time | ~10 minutes | ~2 minutes (Xero sync) |
| Price | Free (included) | Free plan available |
ChaseBot connects to your Xero account and takes over the reminder workflow, so you get more control without leaving Xero.
One-click OAuth connection. ChaseBot syncs your invoices, contacts, and payment status in real-time. Your Xero data stays in Xero. We just read invoice statuses.
Choose when and how to remind: email, SMS, or both. Set as many stages as you want. Pick the time of day, avoid weekends, escalate tone automatically.
Reminders go out on schedule. When a client pays in Xero (full or partial), ChaseBot detects it instantly and adjusts or stops reminders. No manual intervention needed.
See which reminders were sent, opened, and which clients responded. Identify chronic late-payers and adjust your strategy. All while your invoices and accounting stay in Xero.
These are real frustrations from Xero users on Reddit, and exactly the problems ChaseBot was built to solve.
“Xero's invoice reminders are OK but I wish I could send SMS as well. Half my clients don't even open emails anymore.”
– Reddit user on r/xero
“I've got clients who need 8+ follow-ups. Xero's 5 stages run out and then I'm back to writing manual emails every week.”
– Reddit user on r/smallbusiness
“The worst part is when a client makes a partial payment and still gets a reminder for the full amount. It makes us look disorganized.”
– Reddit user on r/Bookkeeping
Whether you use Xero's built-in reminders or ChaseBot, here's the schedule that works best for most businesses.
| Timing | Channel | Tone | Xero stage |
|---|---|---|---|
| 3 days before due | Friendly heads-up | Stage 1 | |
| On due date | Email + SMS | Polite reminder | Stage 2 |
| 7 days overdue | Email + SMS | Concerned follow-up | Stage 3 |
| 14 days overdue | Email + SMS | Firm notice | Stage 4 |
| 30 days overdue | Formal warning | Stage 5 | |
| 45 days overdue | Email + SMS | Final notice | Xero limit reached |
| 60 days overdue | Collections warning | Xero limit reached |
Notice how the most effective collection schedules need 7+ stages, exceeding Xero's 5-stage limit. With ChaseBot's Xero integration, you get unlimited stages plus SMS at every touchpoint. See our invoice reminder email templates for copy-paste messages for each stage.
Connect your Xero account in 30 seconds. Get SMS + email reminders with unlimited stages, smart scheduling, and auto-stop on payment.
Try ChaseBot freeLearn how to automate your AR process. Reduce DSO, eliminate manual follow-ups, and get paid faster. Step-by-step for small businesses.
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