In short: Xero records your invoices, but it does very little to chase them. Xero credit control means adding a structured process on top: automated reminders across email, SMS and letter, customer statements, escalation for the invoices that go quiet, and visibility over what is owed and when it will arrive. A dedicated credit control platform like Chaser connects to Xero in minutes and automates that whole layer without changing how you invoice.
Most finance teams running on Xero manage credit control the same way: someone exports the aged receivables report, works out who to chase, and sends reminder emails one at a time. It works at ten customers. It quietly falls apart at a hundred, because the chasing becomes inconsistent, and inconsistency is what customers learn to exploit. According to The 2026 accounts receivable report, 92% of businesses have invoices paid after the due date, and 76% of finance teams spend three or more hours a week on accounts receivable tasks.
This guide covers what credit control in Xero can and cannot do natively, and how to automate the rest.
What Xero does natively, and where it stops
Xero includes basic invoice reminders: you can switch on automatic emails that nudge customers before and after an invoice is due. For a small ledger with prompt payers, that is often enough. But native reminders are email-only, apply fairly bluntly across your customers, and stop at the reminder itself — there is no escalation path, no multi-channel chasing, no customer-level payment behaviour insight, and no way to route a stubborn invoice into collections without leaving your accounting stack.
Credit control is a wider process than reminders. It covers deciding who to chase and when, tailoring tone to the customer relationship, sending statements, tracking replies and promises to pay, escalating when chasing stops working, and reporting on what is actually going to arrive. That layer is what a dedicated platform adds.
Xero native reminders vs a credit control platform
| Capability | Xero native reminders | Chaser connected to Xero |
|---|---|---|
| Channels | Email only | Email, SMS, letter and phone |
| Personalization | Basic templates | Schedules and tone tailored per customer group; reminders that read as hand-typed |
| Payment insight | None | AI payer ratings and late-payment prediction |
| Customer payment portal | No | Branded portal to view and pay invoices |
| Escalation | Manual, outside Xero | Escalate to integrated debt collections without changing systems |
How Chaser connects to Xero
The Chaser Xero integration connects in minutes rather than weeks: authorise the connection, and your invoices, customers and payment data sync automatically, so chasing always runs from the latest position and a paid invoice is never chased. Chaser has been a Xero App Partner of the Year twice, in 2016 and 2023.
From there, credit control runs on schedules rather than memory: polite reminders before the due date, firmer follow-ups after it, statements on a cadence, and every reply tracked in one place so anyone on the team can see where each conversation stands.
Setting up credit control in Xero: the process that scales
- Segment your customers. Prompt payers, late payers, and high-risk or high-value accounts. Tone and cadence should differ for each.
- Set reminder schedules per segment. A friendly nudge before the due date is the cheapest way to prevent lateness; firmness scales for the accounts that need it.
- Go multi-channel. Businesses combining SMS and email reminders are 49% more likely to be paid within two weeks than those using email alone (The 2026 accounts receivable report).
- Send statements monthly. Statements resolve the "which invoices?" conversation before it starts.
- Escalate deliberately. Decide in advance what happens at 30, 60 and 90 days overdue — and use an escalation route, such as Chaser's integrated collections service, rather than letting old debt drift.
- Measure it. Track days sales outstanding, the percentage of invoices overdue, and hours spent chasing. Chaser's guide to the DSO formula covers the benchmark maths.
The payoff for systemising this is well evidenced: businesses using accounts receivable automation software are 52% more likely to be paid within two weeks of the due date than those relying on manual processes (The 2026 accounts receivable report).
See what automated credit control looks like on your own Xero ledger.
Speak to an expertFrequently asked questions
Does Xero have credit control built in?
Xero includes basic automatic invoice reminders by email, but not full credit control: there is no multi-channel chasing, customer-level payment insight, statement scheduling, or escalation to collections. Most teams add a dedicated credit control platform on top of Xero for that layer.
How long does it take to connect credit control software to Xero?
Minutes, for platforms with a native Xero integration. Chaser syncs invoices, customers and payments automatically after a short authorisation, so chasing runs from live data with no imports or ongoing maintenance.
Will automated reminders annoy my customers?
Not if they are personalized. Reminders that read as hand-typed, sent on a sensible schedule with tone matched to the relationship, protect goodwill better than sporadic manual chasing — customers get consistency instead of surprises.
What happens to invoices that reminders do not recover?
They need escalation, not more reminders. With Chaser, unresolved invoices can be referred to the integrated debt collections service directly from the platform, so escalation is a workflow step rather than a separate agency relationship.
Does credit control software replace Xero?
No. Xero stays your accounting system of record. Credit control software layers on top, reads your invoice and payment data, and automates the chasing — nothing about how you invoice or reconcile changes.
Getting started
If your team runs on Xero and chasing still happens manually, the fastest path is: connect a credit control platform, segment your customers, switch on scheduled multi-channel reminders, and set the escalation rule for anything that passes 60 days. Record your DSO and hours-spent-chasing first, so in ninety days the improvement is measurable rather than anecdotal. For a deeper look at the automation layer itself, see Chaser's guide to accounts receivable automation.
