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 articleBoth Xero and QuickBooks have built-in invoice reminders. Neither is particularly great. Here's the honest, side-by-side comparison, and what to do when both fall short.
If you're choosing between Xero and QuickBooks specifically for payment reminders, the answer might surprise you: it barely matters. Both are limited to email-only, 3 automatic stages, and zero per-client customization. The real solution is pairing either with a dedicated invoice reminder tool.
“Xero’s terrible ‘onboarding’ is making me miss QuickBooks (and that’s saying something).”
– Reddit user on r/Xero
“I think I’m done with my Stockholm Syndrome relationship with QuickBooks but need to choose alternatives. I have been using one single QuickBooks Desktop file for 19 years.”
– Reddit user on r/smallbusiness
Get AI Summary
Xero includes invoice reminders on all paid plans. Here's what's included, and where it falls short.
Xero sends up to 3 automatic reminders based on days after due date. You can add 2 manual stages for a total of 5, but the same schedule applies to every client.
All reminders go via email. No native SMS option. With ~20% email open rates, most reminders are never seen. Xero has no plans to add SMS.
Xero can send reminders before invoices are due, a useful feature that reduces late payments by 10-15%. Templates are editable but apply identically to all clients.
Reminders stop when an invoice is fully paid. Partial payments can cause issues: the system may still send reminders for the original amount.
For setup details, see our guide on how to automate invoice reminders in Xero. Having issues? Check our Xero reminders troubleshooting guide.
QuickBooks Online includes automatic payment reminders on most plans. Here's the reality of what the feature offers.
QuickBooks supports 3 automatic payment reminders: pre-due, on-due, or post-due. Timing is customizable by days, but the same schedule applies globally to all clients.
Like Xero, QuickBooks only sends reminders via email. No SMS, no in-app notifications. Your reminders compete with hundreds of other emails in your client's inbox.
QuickBooks allows some customization of reminder emails, but options are more restrictive than Xero. Message editing is available but formatting and layout control is minimal.
QuickBooks includes AR aging reports to see which invoices are overdue. This is a reporting feature, not automation. You still have to act on the data manually.
A direct feature comparison. Spoiler: they're remarkably similar, which is exactly why the choice shouldn't be based on reminders alone.
| Feature | Xero | QuickBooks |
|---|---|---|
| Auto reminder stages | 3 | 3 |
| Pre-due reminders | Yes | Yes |
| SMS reminders | No | No |
| Template customization | Basic | Limited |
| Per-client rules | No | No |
| Reporting | Aging report | Aging report |
| Auto-stop on payment | Yes (basic) | Yes (basic) |
| Price | From $29/mo | From $30/mo |
Prices reflect the lowest paid plan as of February 2026. Reminder features are included at no extra cost on both platforms.
Xero's interface is widely regarded as more intuitive and visually polished. Setting up reminders and configuring templates feels smoother.
Xero's marketplace has a wider selection of AR add-ons. Tools like ChaseBot, Paidnice, and Chaser all integrate deeply. If you outgrow built-in reminders, the ecosystem has better upgrade options.
Xero's developer-friendly API means third-party AR tools have deeper, more reliable integrations. Real-time sync, payment detection, and contact mapping work more smoothly.
QuickBooks dominates the US small business accounting market. More accountants, bookkeepers, and advisors are familiar with it, a real practical advantage.
QuickBooks has broader built-in integrations with US-centric tools: payroll providers, payment processors, and banking services.
The vast majority of US-based accountants are QuickBooks-certified. This reduces friction with your financial team and means more support resources online.
Neither Xero nor QuickBooks will tell you this in their marketing: their reminder features were designed as basic add-ons, not dedicated collection tools. Both share the same core gaps.
Neither sends text messages. SMS has a 98% open rate vs 20% for email, but neither platform offers it.
Every client gets the same schedule and template. One size fits all, and it fits nobody well.
Both cap at 3 stages. Many clients need 7-8+ touchpoints before paying. After stage 3, you're writing emails manually.
Neither tells you which reminders were opened, which clients responded, or which stage triggered payment. You're flying blind.
Choosing between Xero and QuickBooks for reminders is like choosing between two cars with equally small fuel tanks. The real question isn't which is better. It's how to extend the range. See our ChaseBot vs Xero reminders comparison for a deeper look.
Accounting software is for accounting. Invoice collection is a different problem. ChaseBot integrates directly with Xero to fill every gap. QuickBooks support coming soon.
| Feature | Xero / QuickBooks | ChaseBot + Xero |
|---|---|---|
| Reminder stages | 3 automatic | Unlimited |
| SMS reminders | No | Yes (included) |
| Per-client customization | No | Yes (per client) |
| Smart scheduling | Days after due date | Optimal times + day preferences |
| Analytics & reporting | Aging report only | Full analytics dashboard |
| Partial payment handling | Inconsistent | Auto-adjusts remaining balance |
| Setup time | ~10 minutes | ~30 seconds (OAuth) |
| Additional cost | Free with subscription | Free tier + $29/mo |
ChaseBot doesn't replace your accounting software. It extends it. Keep Xero for invoicing and reconciliation. Let ChaseBot handle reminders with SMS, unlimited stages, and smart scheduling. Learn more about our Xero invoice reminders integration. For the full AR landscape, see our best AR automation software comparison.
Whether you're on Xero or QuickBooks, built-in reminders aren't enough. ChaseBot adds SMS + email, unlimited stages, per-client rules, and auto-stop on payment, connected to your Xero account in 30 seconds.
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.
Read articleCopy-paste late fee clauses for your invoices and contracts. Percentage-based, flat fee, payment terms, and early discount wording.
Read article