Automatic reminders for overdue invoices in Xero or QuickBooks

Short answer: Both Xero and QuickBooks Online can email customers automatically when an invoice is about to fall due or is overdue, so you only step in when a reminder has failed. A sensible schedule is one friendly nudge a few days before the due date, then reminders at 7, 14 and 30 days late, each one firmer and each carrying a pay-now link. After the last automatic email, a person should pick up the phone.

Why automate the chasing at all

Most late payment in a small business is not refusal. It is an invoice sitting in someone's inbox under forty other emails, or a bookkeeper who pays on Thursdays and never saw yours. A polite, well-timed reminder fixes most of those cases, and the awkward part is remembering to send it. Software never forgets, never feels embarrassed and never sends the third reminder in a temper.

A reminder schedule that works for most firms

Here is a starting point. Adjust the gaps if your terms are short (7 days) or long (60 days), but keep the shape: early and light, then steadily clearer.

Two rules make this schedule work. First, reminders stop the moment the invoice is paid or a payment is recorded, which both tools handle automatically once the bank feed or payment service marks the invoice as paid. Second, a reminder only goes to invoices that were actually sent; drafts and invoices you posted by hand without marking them as sent are skipped.

Setting it up in Xero

According to Xero's help centre (checked November 2026), invoice reminders live under Sales → Invoices → Invoice Reminders. The first time you open it the switch reads "Off".

1. Make sure each customer in Contacts has a current email address. Reminders go to the contact's primary person and anyone else ticked "Include in emails".
2. Tick Email customers when an invoice is… Xero then switches on three default reminders for overdue invoices.
3. Decide on the global options: include the online invoice button and a summary of the amount and due date, include a link to the PDF, and skip reminders for amounts below a figure you choose (useful for rounding differences of a few pence).
4. Add or edit reminders. Xero allows up to five. Choose "due in" for reminders before the due date or "overdue by" for later ones, then enter the number of days. Zero days sends on the due date itself.
5. Edit each email template and insert placeholders such as the contact name, invoice number and amount due.
6. Save, then check who receives replies. By default, customer replies go to the login email of whoever turned reminders on, which is a problem if that person has left. Change it to a shared accounts address.

You can also stop reminders for one customer or a single invoice, for example a part-paid invoice you have already agreed a plan for. Each invoice shows its reminder history, so you can see whether an email actually went.

Setting it up in QuickBooks Online

QuickBooks Online has its own automatic reminder setting in its sales settings, where you switch reminders on and write the message. The exact menu names, the number of reminders and the timing options vary by edition and have changed over time, so open Intuit's current UK help article on invoice reminders before you configure it rather than relying on an old screenshot. The same principles apply: confirm customer email addresses, only rely on it for invoices that were emailed from QuickBooks, and send replies to a monitored inbox.

If the built-in options feel too limited, both platforms have app marketplaces with dedicated credit-control tools. Try the built-in reminders first.

Make paying the easy part

A reminder that says "please pay" but makes the customer hunt for bank details is half a reminder. Xero's UK payments page lists card, Apple Pay, Google Pay, Direct Debit, Klarna and Pay by Bank as options customers can use from an online invoice once a payment service is connected (as of November 2026). Whatever tool you use, connect at least one online payment method so every reminder carries a button, and keep your bank details on the PDF for customers who prefer a transfer.

Wording you can adapt

Keep reminders short. Lead with the facts, then make the action obvious.

Before the due date

Hi [first name], a quick heads-up that invoice [number] for [amount] is due on [date]. You can view and pay it here: [link]. Thanks!

7 days overdue

Hi [first name], invoice [number] for [amount] was due on [date] and still shows as unpaid on our side. If it's already on its way, please ignore this. If anything about it needs sorting, just reply and we'll help.

14 days overdue

Hi [first name], invoice [number] for [amount] is now two weeks overdue. Could you let us know when we can expect payment? The pay link is here: [link].

30 days overdue

Hi [first name], invoice [number] for [amount] is 30 days overdue. We'll call you this week to agree a payment date. Until then, new work for your account is on hold.

Only state a consequence you will genuinely carry out. A threat you never act on teaches customers to ignore the next one.

When the emails stop working

Automatic reminders handle forgetfulness, not disputes or cash-flow trouble. If a customer has gone quiet after the 30-day email, ring them. Often there is a reason nobody wrote down: a wrong purchase order number, an invoice sent to someone who has left, a query about one line. A short call fixes in five minutes what four emails could not. Note the outcome against the invoice so the next person knows what was agreed.

Every few months, check which reminder most invoices get paid after. If many pay only after the call, bring the call forward.

FAQ

Will customers find automatic reminders rude?

Rarely, if the first one is friendly and arrives before or shortly after the due date. Most people prefer a polite automatic note to a surprised phone call weeks later. Keep the tone neutral and let customers reply to a real inbox.

Do reminders go out for invoices I paid by bank transfer but haven't reconciled?

They can. Reminders check whether the invoice is still unpaid in the software, so if a payment arrived but hasn't been matched yet, the customer may get an unnecessary chase. Reconcile your bank feed regularly, especially before reminder days.

Can I exclude one big client from reminders?

Yes. Xero lets you stop reminders for a specific contact or invoice. Use it sparingly and set yourself a manual reminder instead, so those invoices aren't forgotten entirely.

Should I also send statements?

A monthly statement listing every open invoice is useful for customers with many small invoices, because their accounts team can pay them in one go. It complements reminders rather than replacing them.

If you'd like reminders, payment links and a call-back step joined up with the rest of your billing workflow, tell us how you invoice today.

Sources

• https://central.xero.com/0/article/How-invoice-reminders-work
• https://central.xero.com/0/article/Set-up-invoice-reminders
• https://www.xero.com/uk/accounting-software/accept-payments/