GuideFeb 12, 2026
How to automate invoice reminders in Xero (2026 guide)
Step-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 articleYou send the invoice. You follow up by email. Then you follow up again. And again. Nothing. Your reminder is sitting in a promotions tab, buried under 47 other unread messages, or flagged as spam. Meanwhile, your cash flow is drying up.
The problem isn't your client. It's your channel. Email open rates for business messages hover around 20%. SMS? 98%. If you're only using email to chase invoices, you're leaving money on the table.
“I hate chasing payments. It's awkward. I forget to follow up. I waste hours writing 'just checking in' emails.”
– Reddit user on r/Entrepreneur
“Existing tools help with invoicing but they don't really automate the awkward follow-up part.”
– Reddit user on r/Entrepreneur
Get AI Summary
Every metric that matters for getting invoices paid favors SMS. Here's how the two channels stack up for SMS payment reminders vs email.
The bottom line: a text message payment reminder is nearly 5x more likely to get a response than an email. But that doesn't mean you should abandon email entirely. The smartest businesses use both. Read on for the complete comparison.
Both channels have strengths. Here's how they compare across every metric that matters for invoice collection.
| Metric | SMS | |
|---|---|---|
| Open rate | 98% | 20% |
| Average response time | 90 seconds | 2.5 days |
| Response rate | 45% | 6% |
| Click-through rate | 19% | 2.3% |
| Cost per message | $0.01 - $0.05 | $0.001 - $0.01 |
| Character / content limit | 160 characters | Unlimited |
| Best for | Urgency, quick nudges | Detail, formal notices |
| Deliverability | 99%+ (no spam filters) | 85% (spam, promotions tab) |
| Personalization | Name, amount, link | Full branding, templates |
| Spam / ignore risk | Very low | High (30%+ never seen) |
SMS wins on every engagement metric. Email wins on cost and content depth. The takeaway? You need both. Check out our SMS payment reminder templates and invoice reminder email templates for ready-to-use copy.
Email is far from dead. There are specific scenarios where email reminders outperform SMS.
Full invoice details, line items, and PDF attachments belong in email. SMS can't carry this level of detail.
Statements, account summaries, and legal notices need the formatting and documentation that email provides.
Bank transfer details, multiple payment options, or international payment info requires the space email offers.
Contracts, receipts, credit notes, and supporting documents can only be attached via email.
Email provides a searchable, time-stamped record that both parties can reference for disputes or audits.
SMS shines when you need immediate attention and quick action from your clients.
A quick text on the day an invoice is due creates urgency. Clients see it instantly and can tap to pay in seconds.
When emails have gone unanswered, an SMS cuts through. It's harder to ignore a text message than another email.
Short, friendly reminders that don't need detailed context. Just the amount, due date, and a payment link.
Clients who routinely ignore emails often respond to texts. Switch channels to break the pattern.
Late fees about to kick in, accounts about to be suspended, or payment plans about to expire. SMS delivers urgency.
The best collection results come from combining SMS for urgency with email for detail. Here's the ideal reminder sequence that balances both channels without overwhelming your clients.
This multi-channel approach is used by businesses that reduce their average days sales outstanding (DSO) by 40% or more. For a deeper dive into accounts receivable automation, see our complete guide.
Friendly email with invoice details, amount, due date, and a payment link. Sets the expectation early.
Same-day email confirming the invoice is due today. Includes a clear call-to-action with payment link.
Short, friendly text: "Hi [Name], invoice #[INV] for [Amount] is 3 days overdue. Pay here: [link]"
Longer email with invoice copy attached, payment options listed, and a polite request to arrange payment this week.
Firmer text: "Invoice #[INV] is 14 days overdue. Immediate payment requested: [link]"
Formal email with final notice language and consequences. Paired with a final SMS for maximum visibility.
Pro tip: The key rule is that reminders stop the instant your client pays. No channel-switching, no accidental double-messages, no awkward “sorry, disregard that” texts. This requires real-time sync with your accounting software, which is exactly what ChaseBot does with Xero.
Building a multi-channel reminder sequence manually is exhausting. ChaseBot does it automatically, for every invoice, every client, every time.
Set up reminder sequences that combine text messages and emails. Define which channel fires on which day. No separate tools needed.
ChaseBot pulls invoices directly from Xero and monitors payment status in real time. When a client pays, all pending reminders are cancelled instantly.
No more embarrassing "please pay" messages after someone already has. The moment Xero registers payment, ChaseBot stops all reminders for that invoice.
Reminders are sent during business hours in your client's time zone. No 2 AM texts, no weekend messages unless you want them.
Every SMS and email is personalized with the client's name, invoice number, amount, and a direct payment link. No manual copy-pasting.
Every message sent (SMS and email) is logged in your dashboard. See exactly what was sent, when, and whether it was opened or clicked.
ChaseBot is purpose-built invoice reminder software that combines the power of SMS invoice reminders with email reminder templates into a single automated workflow. Connect your Xero account and start getting paid faster in under 60 seconds.
Copy-paste SMS templates with 98% open rates for every stage of collections.
Professional email templates for pre-due, due-date, and overdue reminders.
The complete guide to automating your AR process and reducing DSO.
How ChaseBot automates SMS + email reminders with Xero integration.
ChaseBot combines SMS and email invoice reminders into one automated workflow. Connect Xero, set your schedule, and let ChaseBot chase your invoices so you never have to again.
Try ChaseBot freeStep-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 articleLearn 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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