Xero has just released a function for Xero users who invoice through Xero to automatically remind customers when their invoice remains outstanding.  This is a great little addition from Xero and is a simple way for organisations to stay on top of their receivables.  It is sure to improve cash-flow for organisations that choose to use this function.

Enabling the Invoice Reminders is simple – in the awaiting payment tab in sales, there is an ‘Invoice reminders off’ tab to click.  From here you can turn on the reminders function, edit the stages you wish for customers to receive the reminders or stick with the default intervals of 7 days, 14 days and 21 days overdue.  Customers who have overdue invoices at these intervals will then receive a friendly reminder email automatically.  You can use the default wording for these reminders or edit these to add your own flavour to the messages.  There is an option to exclude specific customers from these reminders.

One caution for those who intend to use this – make sure you stay on top of your reconciling of your bank transactions so that all deposits received have been matched off against the appropriate invoice.  This would save your customers from receiving an unnecessary reminder from you when they had in fact paid you. We recommend reconciling your transactions daily. 

The Invoice Reminders will be a simple and effective debtors management tool which will improve your cash-flow and save you time from having to individually remind late payers. 

If you would like any help with this or debtors management in general, please give the team a call.

Written by Dylan Guitry