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 article“Xero's reminder stages are limited to 5. Does anybody else wish it could support more stages and more automation rules?”
– Xero user on r/Xero
If your Xero invoice reminders aren't working the way you need them to, you're not alone. Thousands of businesses hit the same wall: limited stages, email-only delivery, and zero per-client customization. Here's how to fix it, and what to do when Xero's built-in system simply isn't enough.
Some of these are fixable within Xero. Others are built-in limitations you can't work around, no matter how much you tweak the settings.
Xero defaults to 3 automatic stages at 7, 14, and 21 days overdue. You can stretch this to 5 with manual additions, but many clients need 7-8+ touchpoints before they actually pay. Once you exhaust those stages, you're back to writing emails by hand.
Xero reminders only send email. With average email open rates around 20%, most of your reminders are never even seen. SMS has a 98% open rate, but Xero has no way to send them. Your reminders might technically be "working" but never getting read.
As one Xero user put it: "only 5 reminder slots, and the same template applied to every client. For those with different client types, that's a deal-breaker." You can't send a gentle nudge to a good client and a firm notice to a chronic late-payer.
Xero sends reminders based on days-after-due-date, with no control over time of day, day of week, or timezone awareness. Your reminder might arrive at 2am on a Sunday, buried under a pile of Monday morning emails.
If a client makes a partial payment, Xero may still send a reminder for the full invoice amount. This confuses clients, looks unprofessional, and can damage the relationship you've worked hard to build.
Xero sends reminders from its own email infrastructure. Without custom sender domain support, these emails often trigger spam filters, especially for clients with strict IT policies. Your reminder is "sent" but never arrives.
Xero gives you zero visibility into which reminders were opened, which clients responded, or which stage finally triggered payment. You're flying blind, guessing at whether your reminders are doing anything at all.
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These frustrations show up on Reddit every week. If any of them sound familiar, you've hit the limitation wall.
“Xero's reminder stages are limited to 5. Does anybody else wish it could support more stages and more automation rules?”
– Reddit user on r/Xero
“They quickly hit limitations: only 5 reminder slots, and the same template applied to every client. For those with different client types, that's a deal-breaker.”
– Reddit user on r/Xero
“Chasing late invoices... Most start manually, writing every reminder email themselves. It eats up a huge amount of time.”
– Reddit user on r/Xero
Before looking for an alternative, make sure you've checked these common Xero reminder issues. Some are surprisingly easy to overlook.
Go to Settings > Invoice Reminders and verify the master toggle is enabled. Also check that each individual reminder stage is toggled to "On". It's easy to configure everything but forget to flip the main switch.
Xero only sends reminders for invoices with a status of "Approved" or "Sent", not "Draft". If your invoices are stuck in Draft, reminders will never trigger. Check your invoice list and approve any that need it.
In Xero, you can exclude specific contacts or contact groups from reminders. Go to the contact's record and ensure they're not on the exclusion list. This is a common reason reminders "stop working" for specific clients.
Ask your client to check their spam/junk folder. Xero's reminder emails sometimes get flagged by corporate email filters. If this is happening consistently, it's a sign you need a tool with better email infrastructure, or SMS as a backup channel.
If 3 automatic stages aren't enough, Xero lets you add up to 2 more manual stages (for 5 total). Go to Invoice Reminders and click "Add another reminder". Keep in mind: even 5 stages may not be enough for slow-paying clients.
Still not working the way you need? Check out our full guide on how to automate invoice reminders in Xero for a deeper walkthrough of Xero's settings.
There's a difference between “reminders not working because of a settings issue” and “reminders not working because the tool is too limited.” If you've tried the quick fixes above and you're still frustrated, you've likely hit Xero's limitation wall.
Xero is an excellent accounting platform. But its invoice reminder feature was designed as a basic add-on, not as a dedicated invoice reminder tool. For businesses sending more than a handful of invoices per month, the cracks become obvious: no SMS, no per-client rules, no analytics, and a hard cap on reminder stages.
The result? You end up manually chasing invoices anyway, writing individual emails, tracking who paid in spreadsheets, and spending hours each week on work that should be automated. As one Reddit user described it: “chasing late invoices... most start manually, writing every reminder email themselves. It eats up a huge amount of time.”
The better approach isn't to replace Xero. It's to pair it with a tool that was purpose-built for accounts receivable automation.
Side-by-side: what you get with Xero's native reminders versus pairing Xero with ChaseBot.
| Feature | Xero Built-in | ChaseBot + Xero |
|---|---|---|
| Reminder stages | 3 automatic (5 max) | Unlimited |
| SMS reminders | No | Yes (98% open rate) |
| Auto-stop on payment | Full payment only | Yes (real-time Xero sync) |
| Per-client customization | No (same for all) | Yes (per client) |
| Smart scheduling | Days after due date only | Optimal times + day preferences |
| Reporting & analytics | None | Full analytics dashboard |
| Partial payment handling | Sends full amount reminder | Auto-adjusts remaining balance |
| Email deliverability | Basic (often hits spam) | Optimized infrastructure |
| Setup time | ~10 minutes | ~30 seconds (Xero OAuth) |
| Cost | Free (with Xero subscription) | Free tier + $29/mo |
Want to see how SMS invoice reminders compare to email? SMS has a 98% open rate vs 20% for email, and ChaseBot sends both automatically from your Xero data.
ChaseBot connects to your Xero account through OAuth. No API keys, no manual setup, no spreadsheet imports. Here's the full process.
Click "Connect Xero" and authorize ChaseBot with your Xero login. We sync your invoices, contacts, and payment status automatically. Your accounting data stays in Xero. ChaseBot only reads what it needs for reminders.
Choose when and how to remind: email, SMS, or both. Set as many stages as you want, no 3 or 5 stage cap. Pick the time of day, avoid weekends, and escalate tone automatically as invoices age.
Set different rules for different clients. Give your best clients a gentle 2-stage nudge. Give chronic late-payers an aggressive 8-stage sequence with SMS at every touchpoint. Or use the defaults. They work great out of the box.
Reminders go out on schedule. When a client pays in Xero (full or partial), ChaseBot detects it in real-time and adjusts or stops reminders instantly. No manual tracking. No embarrassing follow-ups after payment.
Need help with your reminder wording? Check out our invoice reminder email templates for copy-paste messages at every stage of the collection process.
You don't need to replace Xero. You need to complement it. Keep Xero for what it does best (invoicing, accounting, bank reconciliation) and add a purpose-built tool for the reminder workflow.
ChaseBot's Xero integration syncs your invoices in real-time, sends reminders through both email and SMS, and automatically stops when clients pay. It's the missing piece that turns Xero from a good invoicing tool into a complete accounts receivable automation system.
Connect your Xero account in 30 seconds. Get unlimited SMS + email reminder stages, per-client rules, smart scheduling, and auto-stop on payment.
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.
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