Overview
Xero has a powerful built-in invoice reminder system that most users never configure. Once set up, it sends professional, customizable reminders to clients automatically at your chosen intervals — saving hours of manual follow-up and significantly reducing average payment times. This guide covers the full setup and how to customize reminders for different client types.
Before you start
- Xero account
- Invoices sent via Xero (not third-party invoicing)
- Client email addresses in Xero contacts
- Business email connected to Xero
Step-by-step guide (4 steps)
Enable invoice reminders in Xero
In Xero, go to Settings > Email Settings > Invoice Reminders. Toggle on 'Send invoice reminders.' You'll see the option to configure reminder timing and templates.
Configure your reminder schedule
Set up three reminders: (1) 3 days before due — a friendly heads-up. (2) On the due date — polite reminder. (3) 14 days overdue — firm follow-up requesting immediate payment. Xero sends these automatically from your connected email.
For high-value invoices, configure a 4th reminder at 30 days overdue that includes a note about your late fee policy.
Customize the reminder email templates
Click 'Edit' on each reminder. Personalize: add your logo via Xero's branding settings, customize the subject line (e.g., 'Invoice #1234 — Action Required'), and add your business phone number. The default template is generic — a 10-minute customization makes it significantly more effective.
Configure per-client reminder settings
For clients who've asked not to receive automated reminders (e.g., large enterprise clients on Net-60 terms), go to their contact record in Xero and uncheck 'Send invoice reminders.' This gives you per-client control without disabling the system entirely.
What you'll get
Reduces average payment time by 7-10 days
No manual follow-up required for standard overdue invoices
Professional, consistent communication with clients
Frees up mental energy from tracking who owes what
Common mistakes to avoid
Using the default generic template without customization (it looks automated and clients ignore it)
Not testing reminders by sending yourself a test email first
Forgetting to disable reminders for clients on special payment terms
Frequently asked questions
Do I need coding experience to set up this Xero automation?
No coding is required. This guide walks you through everything using Xero's built-in features and Zapier's visual interface. If you can follow a recipe, you can follow this guide.
How long does this automation take to set up?
Most users complete this setup in 30–60 minutes on their first try. Once set up, it runs completely automatically with zero ongoing effort.
What happens if the automation fails?
Zapier and Make both have error notifications and task history, so you'll know immediately if something goes wrong. We cover troubleshooting steps in the guide above.
Can I customize this automation for my specific business?
Absolutely. The guide includes notes on common customizations. Most automations have multiple variation points — timing, conditions, notification recipients, and more.