How to set up an invoice reminder bot

You've done the job, sent the invoice, and now you're waiting. And waiting. Chasing payment feels awkward, so you don't, and your cash flow takes the hit.

Step by step

1. Open the invoice reminder settings in your accounting software.
2. Write three reminders: friendly, firmer, final (AI can help draft them).
3. Set timing, for example 7, 21 and 35 days after due.
4. Include a payment link if you accept card payments.
5. Turn it on and send a test to yourself.
6. Pick up the phone for anything past the final reminder.

Watch-outs

• Exclude customers on payment plans.
• Keep the tone polite; most late payers just forgot.
• Check reminders stop once the invoice is paid.

A worked example

A Brisbane signwriter turns on automatic invoice reminders in Xero. One goes out three days before the due date, then seven days after, then 21 days after. He rewrites Xero's default wording so it sounds friendly but clear, and includes a 'pay now' link.

Most clients pay after the first reminder. He now reviews the aged receivables report on Friday mornings, and only picks up the phone for invoices over 30 days.

What it costs in Australia

Invoice reminders are built into Xero (Australian plans range up to A$107 a month for Comprehensive and A$143 to A$250 for Ultimate, AUD including GST) and MYOB (Smart Invoice Reminders from MYOB Lite, which is A$315 a year after its intro offer; Pro is A$70 a month). QuickBooks has reminders too. No extra tool needed. Online payment fees apply if you add 'pay now' links.

Prices are approx., October 2026, converted at about A$1.43 per US$1 where the vendor charges in US dollars. Your bank may add a foreign transaction fee. Check the vendor's pricing page before you buy.

The legal bits

Payment reminders for money owed are generally not commercial electronic messages under the Spam Act, but if you add promotions to them, they become marketing and the rules apply. Be polite and factual; harassment and coercion in debt collection can breach the Australian Consumer Law. Invoices from GST-registered businesses must meet the ATO's tax invoice requirements.

Is it worth it?

Almost always. It's built into software you probably already pay for, it takes 15 minutes, and it directly affects money coming in. If you only invoice a handful of clients a month and they all pay on time, you might not need it, but most small businesses have at least one slow payer.

Common mistakes

• Leaving the default wording. The built-in templates can sound cold. Rewrite them in your voice.
• Reminders after payment. If your bank feed isn't reconciled, a customer who paid might get a reminder. Reconcile at least weekly.
• Too many reminders. Three is plenty. After that, pick up the phone.
• No payment link. Make paying easy. A 'pay now' button or clear bank details in every reminder helps.
• Forgetting the relationship. For a long-standing client who's suddenly late, a phone call may be better than an automated email.

If you're unsure about wording, the overdue invoice use case on our sister site has a prompt for friendly, firm and final versions.

You don't need a chatbot or any AI for this one. Plain scheduled reminders do the job.

Questions

Do I need extra software?

Usually not. Most accounting tools have this built in.

Can AI chase on the phone?

Possible, but for small businesses a human call is better for relationships.

Will reminders annoy my customers?

Polite, well-timed reminders rarely do. Most people are grateful for the nudge.

Should I add late fees?

Only if they're in your terms and the client agreed before you started work.

Do this today

Log in to Xero or MYOB, turn on invoice reminders, and edit the wording so it sounds like you. Ten minutes.

Related guides

• How to set up a missed-call text-back bot
• How to set up a meeting notes bot
• How to set up a document data entry bot

Need prompts for the AI steps? See 40 AI use cases with copyable prompts. Want a hand? Get in touch.