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Keeping tabs on your accounts receivable is an absolute must for entrepreneurs. Xero invoice reminders are an effective way to ensure you're getting paid in a timely manner and avoiding any unnecessary delays or missed payments. When you pair Xero's invoice reminders with payment services and use a handy add on for collections, the days of not getting paid on time will be a thing of the past. Need a little help crafting the perfect payment reminder and setting them up in Xero? We've got you covered with our example email templates and a handy Xero invoice reminder set up guide.
Automated invoice reminders are a great way to get paid faster and stay organized with your invoicing. With Xero, you can quickly set up automated reminders to be sent regularly, helping ensure customers stay on top of their payments and keeping your cash flow steady.
One of the challenges of running a small business is managing the cash flow cycle, which involves ensuring that there is enough money coming in to cover expenses and invest in growth. Late payments from clients can create cash flow gaps that can be challenging to overcome, particularly for small businesses that may not have large cash reserves. By automating the process of sending payment reminders, small business owners can ensure that their clients are reminded to pay their invoices promptly and consistently, without adding more work to the business owner's plate.
Manually sending payment reminders to clients who haven't paid their invoices on time can be a time-consuming process. By automating the process of sending payment reminders, you can save valuable time that can be better spent on other aspects of your business, such as marketing, product development, and customer service. This can help you to work more efficiently and effectively, and ultimately contribute to the growth and success of your business.
As a business owner, you know that even small errors can have a significant impact on your business. When it comes to invoicing, errors can result in late payments, misunderstandings, and damaged client relationships. By automating the process of sending payment reminders, you can reduce the risk of errors and ensure that your invoicing process runs smoothly. You can customize the reminders to include the correct payment details, due dates, and other relevant information, ensuring that clients have all the information they need to pay their invoices on time.
The way you communicate with your clients can have a significant impact on your business relationships and overall success. Sending payment reminders manually can sometimes come across as confrontational or unprofessional, which can damage client relationships and make it difficult to do business in the future. Invoice Reminders can be customized to match your brand identity and tone, helping to maintain positive relationships with clients.
Setting up automated invoice reminders in Xero is a great way to ensure your clients are always aware of their payment obligations. With just a few simple steps, you can quickly configure these helpful notifications and save yourself time and energy.
To begin, log into your Xero account, click on Business and then select Invoices.
From there, click "Invoice Reminders: Off".
Tick the box next to, "Email customers when an invoice is..."
Here you can edit the
You can use placeholders within the Xero's email templates to personalize the content and make it more relevant to each individual invoice. This information is pulled from different parts of Xero, including the Invoice Module and Contact Module, and allow you to send customized emails to your clients without having to do any extra work.
Here are the placeholders can be used within Xero's Invoice Reminders
Placeholder | Description | |
Amount Due Without Currency |
The amount due on the invoice, or remaining credit on the prepayment, including tax, without the currency code. |
|
Amount Due |
The amount due on the invoice, or remaining credit on the prepayment, with the currency code included. |
|
Contact / Customer First Name |
The first name of the contact/customer stored in your contact's details. |
|
Contact/Customer Last Name |
The last name of the contact/customer stored in your contact's details. |
|
Contact/Customer Name |
The name of the contact/customer stored in your contact's details. |
|
Currency Code |
The 3-letter code that represents the currency type. |
|
Currency Symbol |
The symbol representing the currency type. |
|
Due Date |
The due date from the invoice. |
|
Invoice Number |
The number of the credit note, invoice etc. |
|
Invoice Total Without Currency |
The total invoice amount, including tax, without the currency code. |
|
Invoice Total |
The total invoice amount, including tax, with the currency code included. |
|
Month Year |
The current month and year, for example, October 2014. For example, if the current month is December 2014, [Month Year+1] will display January 2015. |
|
Month |
The current month of the year, for example, October. For example, [Month+1] will display the month after the invoice date. |
|
Online Invoice/Quote Link |
The link to the online credit note, invoice, or quote. |
|
Reference |
The reference from the credit note, invoice or quote etc |
|
Trading Name |
Your organization's legal/trading name set up in Organization Settings. |
|
Week Year |
The current week and year, for example, 46 2014. Weeks start on Monday. |
|
Week |
The current week of the calendar year, for example, Week 8. Weeks start on Monday. |
|
Year |
The current year. |
When sending invoice reminders, the language you use can make a big difference in how customers respond. It’s important to be professional and polite while still making sure your message is clear and concise. Here are some best practices for crafting effective emails:
Your tone should always be respectful when communicating with customers about payment. Use phrases like “please” and “thank you” to show that you value their business. Avoid using aggressive or threatening language as this will only lead to frustration on both sides.
Keep your messages short and sweet - no one likes to read long emails. Make sure all of the necessary information is included but avoid going into too much detail or getting sidetracked by other topics unrelated to payment.
When writing an email, use plain language that anyone can understand easily without having specialized knowledge or experience in accounting or finance. Avoid industry jargon as this could confuse customers who may not be familiar with the terminology used in your field of work.
Clearly explain what payment options are available so there is no confusion about how they can pay their invoice (e.g., credit card, PayPal, etc.). Include any relevant links for online payments if applicable and provide instructions on where/how they should send checks if that's an option as well.
Let customers know when payment needs to be received by providing a deadline date along with any potential consequences such as late fees if they miss it (this should also be stated clearly on the invoice itself). This helps ensure prompt payments from clients who may otherwise procrastinate until reminded again at a later date.
Subject: Payment Due for Invoice # [Insert Invoice Number]
Dear [Insert Client Name],
This is a friendly reminder that your payment for Invoice # [Insert Invoice Number] is now due. You can easily pay your invoice online using the link provided below:
[Insert payment link]
Thank you for being a valued customer. If you have any questions or if there is anything that we can help with, please don't hesitate to contact us.
Best,
[Insert Your Name]
Subject: Payment Reminder for Invoice # [Insert Invoice Number]
Dear [Insert Client Name],
We wanted to reach out and let you know that we have not yet received payment for your Invoice # [Insert Invoice Number], which was due seven days ago.
You can pay your invoice securely by clicking on the link below and following the simple prompts:
[Insert payment link]
If you have already submitted payment or have any questions about your invoice, please do not hesitate to contact us at [Insert Contact Information].
We value our partnership and would like to thank you for your attention to this matter.
Best regards,
[Insert Your Name]
Subject: Urgent Payment Reminder for Invoice # [Insert Invoice Number]
Dear [Insert Client Name],
Unfortunately, it has come to our attention that your payment for Invoice # [Insert Invoice Number] is now 21 days past due.
We value our partnership and understand that delays can occur due to unforeseen circumstances. We would like to assist you in resolving any issues that you may be facing with the payment of this invoice. If you are having any difficulties paying the invoice or have any questions regarding the payment or outstanding balance, please do not hesitate to contact us at [Insert Contact Information]. We will do our best to assist you in resolving any issues.
You can pay your invoice securely by clicking on the link below and following the simple prompts:
[Insert payment link]
Please be advised that invoices over 30 days will incur a late fee, and we'd like to settle this matter before a late fee is applied.
Thank you for your attention and cooperation in this matter, and we look forward to your continued patronage.
Best regards,
[Insert Your Name]
Subject: Final Notice of Payment for Invoice # [Insert Invoice Number]
Dear [Insert Client Name],
Unfortunately, your payment for Invoice # [Insert Invoice Number] is now 30 days past due and a late fee of [$ Late Fee Amount] has been applied to your balance.
Failure to receive payment may result in the suspension or termination of our services, and we would like to avoid this from occurring.
To make payment as easy as possible, we offer the convenience of paying online. You can pay your invoice securely by clicking on the link below and following the simple prompts:
[Insert payment link]
Please note that if we do not receive payment soon, we may have to take additional legal and procedural measures to ensure that this outstanding balance is resolved.
Best,
[Insert Your Name]
Subject: Invoice # [Insert Invoice Number] Will Been Sent to Collections
Dear [Insert Client Name],
We regret to inform you that your payment for Invoice # [Insert Invoice Number] is now 45 days past due. Despite our previous requests for payment, we have yet to receive any communication or payment from you in this regard.
Per our terms of service, we must remind you that if payment is not made by the end of this week, we will be forced to send the outstanding invoice to a collections agency for resolution. Unfortunately, this will also result in the termination of our working relationship, and we are sure that is not an outcome we would want to consider.
We understand that unforeseen circumstances may arise, and we are here to assist you in resolving any issues that you may be facing with payment. We urge you to arrange payment for this invoice as soon as possible to avoid any legal or collections actions.
To make payment as easy as possible, we offer the convenience of paying online through our secure payment portal, powered by Xero. You can pay your invoice securely by clicking on the link below and following the simple prompts:
[Insert payment link]
We urge you to take prompt action to make payment and avoid any further escalation. If you have any questions, please contact us at [Insert Contact Information], and we will do everything we can to assist you.
Thank you for your attention and cooperation in this matter.
Best regards,
[Insert Your Name]
Understanding the importance of language in your emails is key to successful communication. Moving forward, we will discuss how payments work with Xero Invoice Reminders and how you can set up automated reminders for customers who are overdue on their invoices.
Including payment services to invoices is key for streamlining the collection of payments from customers. Automated invoice reminders with payment options can help reduce the amount of time and effort spent on tracking down payments from clients. With Xero, you can easily add payment services like Stripe, GoCardless, and Paypal to your invoices for a frictionless way to get paid.
Stripe is a widely-used payment processing platform that offers convenience and cost-effectiveness for small businesses. It’s easy to set up and integrates seamlessly with Xero so that customers can pay their invoices directly through Stripe’s secure system without having to leave your website or log in anywhere else. Plus, Stripe offers competitive rates and no setup fees so it’s a great option for small businesses looking for an affordable solution.
GoCardless also makes it easy for customers to pay their invoices directly through its secure platform without leaving your website or logging in elsewhere. It supports multiple currencies so international customers won't have any trouble paying their bills either. Additionally, GoCardless has lower transaction fees than other providers making it ideal if you want to save money on processing costs while still offering convenient payment methods for customers.
PayPal is another popular choice when adding payment services to your invoices as many people already have PayPal accounts set up which makes checkout faster and easier than ever before. PayPal also offers fraud protection and advanced security measures so you know that customer data will remain safe at all times when using this service too.
When setting up these automated invoice reminders with integrated payments systems, be sure that all language used in emails sent out is clear and concise yet friendly enough not to sound robotic or overly formal. This helps ensure that clients understand what they need to do to complete their transactions quickly without confusion or frustration. Also make sure you include instructions on how payments work within each email reminder - such as what currency they should use etc., as well as details about refunds/return policies just in case something goes wrong during the transaction process. Finally don't forget to provide links back directly into Xero where applicable (e.g., view/pay invoice). This allows customers access everything they need right away without having to search around different websites trying to figure out how to complete their purchase/payment.
Integrating payment services into your invoicing system can help expedite the collection of payments, saving time and effort. To ensure that your customers are reminded about their due invoices in a timely manner, it is important to use best practices for language when sending out emails.
Ideally, you'd receive full payment promptly; however, if this isn't the case, there are measures to take in order to recoup what's owed. Regrettably, this isn't always the reality. If you find yourself unable to collect payment from a customer, there are several steps you can take to try and recover what's owed.
First off, make sure your invoices clearly outline all terms of payment including due dates and any late fees or interest associated with nonpayment. This will help set expectations for when payments should be made so customers know exactly what they owe and when it needs to be paid by. Additionally, sending out friendly reminders before an invoice is due can help encourage timely payments as well as build trust between both parties.
If these strategies don't work then it may be necessary to turn over unpaid invoices to a collections service like Collbox which specializes in recovering delinquent accounts receivable (AR). Collbox helps businesses streamline their collections process by automating tasks such as creating collection letters, tracking communication with debtors and reporting on progress toward recovery goals—all while helping maintain strong relationships with customers throughout the process.
Here is a quick demo explaining how Collbox works:
Managing accounts receivable and ensuring timely payments is crucial for the success and growth of your business. By leveraging Xero's invoice reminders, integrating payment services, and utilizing best practices for communication, you can streamline your invoicing process and improve cash flow.
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