Late invoices are one of the most predictable problems in business — and one of the most time-consuming to fix manually.
Someone has to check the spreadsheet. Find the overdue ones. Write a polite email. Wait. Write a firmer one. Wait again. Eventually escalate. Every month. The same routine.
It doesn't have to work like this.
Why Manual Invoice Chasing Is Costing You More Than You Think
The obvious cost is time. A finance person or business owner spending 3–4 hours a month chasing invoices is burning roughly €600–800/year in labour on a task that delivers no value — it just recovers money that was already owed.
The hidden costs are worse:
- Inconsistency — tone shifts depending on who sends the reminder and when. Some clients get chased at day 10, others at day 30.
- Delayed cash flow — manual processes mean late reminders. Late reminders mean later payments.
- Relationship risk — nobody enjoys chasing, and it shows. Reminders that feel rushed or passive-aggressive damage client relationships.
- Zero data — manual chasing leaves no audit trail. You can't easily see which clients pay late habitually, or what reminder timing actually works.
What Automated Invoice Reminders Look Like
A properly built invoice automation system does the following without human input:
1. Monitors payment status continuously Connects to your accounting software (Xero, Merit, QuickBooks, Directo) and tracks every invoice in real time — due date, outstanding amount, payment history.
2. Sends reminders on a schedule Automatically sends pre-written reminders at defined intervals:
- Day 0 (invoice day): sends the invoice with a polite intro
- Day 3 before due: gentle reminder
- Day 1 after due: friendly follow-up
- Day 7 overdue: firmer tone
- Day 21 overdue: escalation flag to you for manual follow-up
Each reminder is personalised — client name, invoice number, amount, due date — and sent from your email address so it looks like you wrote it.
3. Adjusts tone automatically Good payment history? Tone stays warm. Chronic late payer? Tone is firmer from day one. This can be configured once and runs itself.
4. Escalates only when necessary The agent handles everything up to a configurable threshold. Only when the system determines human intervention is needed (repeated non-response, disputed invoice, unusually large amount) does it flag you for action — with full context already prepared.
5. Builds a payment behaviour dataset Over time, you accumulate data on which clients pay late, how often, and how they respond to different reminder styles. This informs future credit decisions and cash flow forecasts.
How to Build This Without a Developer
There are three ways to set this up, depending on your technical appetite:
Option 1 — Use your accounting software's built-in reminders Most modern accounting tools (Xero, QuickBooks) have basic automated reminders. They're limited — fixed templates, no tone adjustment, no escalation logic — but they're better than nothing. If you're just starting, begin here.
Option 2 — Use a dedicated AR automation tool Tools like Chaser, Kolleno, or Paidnice sit on top of your accounting software and add more sophisticated reminder workflows. Monthly cost, but no custom development needed.
Option 3 — Build a custom AI agent For businesses that want full control — custom logic, CRM integration, multi-channel reminders (email + WhatsApp), escalation workflows, and payment behaviour analytics — a custom agent is the right answer. More setup upfront, but it fits your exact process and improves over time.
What the Numbers Look Like
For a 20-person SME sending ~40 invoices/month:
| Metric | Manual | Automated | |---|---|---| | Time spent on reminders | 4–5 hrs/month | ~15 min (review only) | | Average days to payment | 38 days | 24–28 days | | Labour cost (annual) | €700–900 | ~€100 | | Late invoice rate | ~30% | ~12–15% |
The cash flow improvement from getting paid 10 days faster is often worth more than the direct labour saving — especially for businesses with tight working capital.
What to Automate First
If you're considering automating your AR process, start with the simplest version:
- Map your current process — write down exactly what you do today, at what intervals, in what tone
- Pick one accounting tool integration — wherever your invoices live already
- Define your escalation threshold — what triggers human intervention?
- Start with email-only reminders — add WhatsApp or other channels later
The hardest part is usually step 1. Most businesses discover they don't have a consistent process — which is precisely why it hasn't been automated yet.
The Takeaway
Manual invoice chasing is mechanical work dressed up as a human task. It feels like a relationship issue — which is why it often gets handled personally — but 90% of it follows predictable rules that a system can execute better than a human can.
Automating it doesn't remove the human element. It removes the friction, so the human element is reserved for the cases that actually need it.
Want to see what this looks like for your business? Get a free consultation — we'll map your current invoice process and show you exactly what can be automated, and what it's worth.