How to automate invoice chasing in Xero

Chasing overdue invoices by hand is slow, awkward and the first thing to slip when you're busy. If you run your books in Xero, here's how to automate it properly — and where Xero's own tools stop.

Option 1: Xero's built-in invoice reminders

Xero has free invoice reminders you can switch on in minutes. They'll email customers automatically when an invoice is overdue, which is far better than nothing. But they have real limits:

• They only send — they don't read or handle the replies that come back.
• Emails come from a Xero-related address, not always your own domain, which can hurt deliverability and recognition.
• Each overdue invoice is chased separately, rather than as one consolidated statement.
• There's no dispute handling, promise-to-pay tracking, pay links or credit insight.

For a sole trader with a handful of invoices, that may be enough. For a business with real receivables, you'll quickly want more.

Option 2: a dedicated credit-control tool

A purpose-built tool connects to Xero and automates the whole cycle, not just the outbound email. The features that actually move the needle:

• Smart, escalating chasing from your own domain, with tone matched to each customer.
• Reply handling — something that reads "we already paid", "send a copy" or "we dispute line 3" and acts on it.
• One-click pay links so customers can pay instantly from the reminder.
• Consolidated statements and a live view of cash coming in.

How in2 collect automates chasing in Xero

in2 collect connects securely to Xero in a few minutes and pulls in your outstanding invoices automatically. From there it:

• Writes and sends AI chase sequences from your own domain.
• Runs an AI reply & dispute inbox that reads what debtors send back, classifies it, logs promises and drafts responses for you to approve.
• Adds a pay-now link to every chase and reconciles invoices when they're paid.
• Scores each customer's credit risk and forecasts the cash you'll actually collect.

It's the difference between an automated reminder and an automated credit controller. See 9 ways to reduce DSO for the wider playbook.