How do I automate invoice payment reminders?

To automate invoice payment reminders, turn on the reminder feature in your accounting or invoicing software, or build a simple workflow that checks for unpaid invoices each day and sends a polite email a few days before the due date, on the due date and at set points after it. Stop reminders as soon as payment arrives, and pass anything long overdue to a person.

Key takeaways

• Most accounting tools can send automatic reminders before and after the due date; start there before building anything.
• A good schedule is short and polite: 3 days before, on the due day, then 7, 14 and 30 days after.
• Reminders must stop the moment an invoice is paid, or you annoy customers who already paid.
• In the UK, businesses can claim statutory interest of 8% plus the Bank of England base rate and a fixed £40-£100 recovery fee on late B2B payments.
• Keep a person in charge of anything past 30 days and of any decision to charge interest or fees.

Why automate invoice reminders

Chasing payment by hand is slow, easy to forget and awkward. Automated reminders go out on time every time, in a consistent and polite tone, and free you to deal only with the invoices that need a real conversation.

Clear terms help as well. GOV.UK's guidance on payment terms says that if no payment date is agreed, a business-to-business payment is late 30 days after the customer receives the invoice or the work is delivered, whichever is later, and that an agreed payment period between businesses is normally up to 60 days. Putting the due date clearly on every invoice is the first step; reminders then follow from it.

Two ways to automate reminders

Start with the built-in option. For example, Xero's invoicing page says it can email customers payment reminders before or after the due date, written in your own words, and that reminders stop once a payment is matched. Other accounting tools have similar features; check yours before building anything custom.

A reminder schedule that works

Keep each message short. Always include the invoice number, amount, due date and a direct payment link. Ask whether there is a problem with the invoice; sometimes the delay is a missing purchase order number, not a reluctant customer.

Building a custom workflow, step by step

If built-in reminders are not enough, for example because invoices live in one system and customer contacts in another, a workflow tool can do it. Plan it before you build; the guide on how to plan a business automation before you build it explains why.

1. Trigger: a daily schedule, for example at 9am on weekdays.
2. Find invoices: search the invoicing system for invoices with status "unpaid" or "overdue".
3. Work out the stage: compare today's date with each due date to find whether it is 3 days before, the due day, or 7, 14 or 30 days after.
4. Check before sending: confirm the invoice is still unpaid at that moment, and that no reminder for the same stage was already sent (keep a log).
5. Send: the right email template for the stage, from a real address customers can reply to.
6. Escalate: at 30 days, create a task for a person instead of sending another email.
7. Log and alert: record every reminder sent, and alert you if the workflow fails.

The most common mistakes are sending reminders for invoices already paid (because payment data syncs late) and sending the same reminder twice. Checking status just before sending and keeping a log solves both. A full plan should also cover error handling and testing; see what an automation blueprint should include.

Late payment interest and fees in the UK

For business-to-business sales, the law gives you extra options when invoices are paid late. GOV.UK's guidance on charging interest on commercial debt says you can claim statutory interest of 8% plus the Bank of England base rate, unless your contract sets a different rate. The guidance on claiming debt recovery costs sets fixed sums: £40 for debts under £1,000, £70 for £1,000 to just under £10,000, and £100 for £10,000 or more.

You can mention these rights in your later reminders, but keep the decision to actually charge them with a person. Many small businesses use them as a last resort to protect a good customer relationship. These rules apply to business customers, not consumers. This is general information, not legal advice.

Example: a design studio's reminder set-up

Example: illustrative figures, not a real business's results.

A two-person design studio sends about 20 invoices a month, averaging £1,200, on 30-day terms. Before automating, the owner chased by hand when she remembered, and about a third of invoices were paid late.

• Set-up: she turns on built-in reminders in her accounting software at 3 days before, on the due date, and at 7 and 14 days after. She writes the wording herself. Time taken: about an hour.
• Escalation: anything unpaid at 30 days goes on her task list for a personal call.
• Interest: her later reminders mention her right to statutory interest and the fixed £70 recovery fee for a £1,200 debt, but she decides case by case.
• Time saved: she estimates chasing used to take about 2 hours a month. Now she spends around 20 minutes on the few that reach 30 days.

Her rule of thumb: automation handles the polite nudges; she handles the conversations.

Before you switch it on

Check that customer contact details are correct, that each invoice has a clear due date and payment link, and that reminders stop when payment is recorded. Send a test reminder to yourself first. For a broader view of which tasks are worth automating, see which small business tasks to automate first.

Automation Blueprint turns a plain-language description of a process like this into a buildable plan with steps, tools, error handling and a testing checklist.

FAQ

How many payment reminders should I send?

Three or four automated reminders is usually enough: before the due date, on the day and one or two after. After that, a personal contact works better than more emails.

What should a payment reminder email say?

The invoice number, amount, due date, a direct payment link and who to contact with questions. Keep it short and polite.

Can I charge interest on late payments in the UK?

For business-to-business invoices, yes: statutory interest of 8% plus the Bank of England base rate, unless your contract says otherwise, plus a fixed recovery fee. It does not apply to consumers.

Will automatic reminders annoy my customers?

Not if they are polite, well-timed and stop as soon as payment arrives. Most customers appreciate a reminder before the due date.

Do I need Zapier or Make to automate reminders?

Usually not. Most accounting tools have built-in reminders. Workflow tools help when you need custom rules across several systems.

Should reminders come from a no-reply address?

No. Use a real address customers can reply to, because many late payments come down to a simple query about the invoice.

More Automation Blueprint articles