Software for managing overdue invoices in Xero
Start with Xero's own invoice reminders, which are built into its invoicing. Add software when reminders are not enough: Chaser (from US$259 a month) and Paidnice (from US$69 a month) chase customers by email and SMS, and Lateby (US$19 a month, with a free plan) turns late payment interest into draft invoices in Xero. Prices were checked on 14 November 2026.
What Xero does on its own
Xero sends automatic invoice reminders. Its invoicing page says you choose how often to send them, daily or weekly for example, and whether to message customers before or after the payment due date. Xero also keeps track of when each reminder was sent (Xero: send invoices).
What Xero does not do is add interest to a late invoice. You work out the sum and raise it yourself: see how to charge interest on overdue invoices in Xero.
So the question is what you need beyond a reminder email: someone to chase, a fee that is applied for you, or interest billed for a backlog.
Four options side by side
| Option | What it does with overdue invoices | Price Checked 14 Nov 2026 |
|---|---|---|
| Xero invoice reminders | Automatic reminder emails before or after the due date, with a record of when each one was sent. | Built into Xero's invoicing. Xero: send invoices. |
| Chaser | Accounts receivable automation. The Compact plan has four users, 30 follow-up templates and 4 automated receivables workflows, for a business with annual revenue under £4 million. Chaser lists Xero among its integrations. | Compact from US$259 a month (£199 in the UK), or from US$233 (£179) a month billed yearly. The next plan, Core, is from US$779 a month. Chaser pricing. |
| Paidnice | Email and SMS reminders, automated statements, late fees and interest charges, and prompt payment discounts. It integrates with Xero, QuickBooks Online and Stripe. | Essentials US$69 a month (£49) for up to 150 invoices a month and 2 team members. SMS reminders cost US$0.10 each. The first 20 actions are free with no card. Paidnice pricing. |
| Lateby | Takes a Xero sales invoice export, works out the interest on every late invoice at the UK statutory rate or your own rate, and writes one draft interest invoice per customer as a Xero import file, with a PDF notice for each customer. It runs in your browser and has no Xero login. It does not send reminders. | Free for the first three customers in each batch. Practice plan US$19 a month or US$190 a year, for any number of Xero organisations. Lateby. |
Atesen Software, which publishes this guide, makes Lateby. The other rows use only each vendor's public page, opened on 14 November 2026. Features and prices change, so check each page before you decide.
Which one fits
- Customers who pay once they are reminded. Turn on Xero's reminders first. They are part of Xero's invoicing.
- Chasing is somebody's daily job. Chaser and Paidnice both run reminder sequences by email and SMS. Paidnice starts lower, at US$69 a month for 150 invoices. Chaser starts at US$259 a month and is priced by annual revenue.
- You want a fee applied as invoices go overdue. Paidnice lists late fees and interest charges in its Essentials plan.
- You want to bill interest for a backlog, without connecting another app to Xero. Lateby works from an export file and gives you drafts to check and approve in Xero.
- You only need the figure for one invoice. Use a free calculator: UK statutory interest, Ireland, or a late fee from your own terms.
Before you charge anything, check that your terms or the law allow it. In the UK a business can claim statutory interest on a late business invoice, but a fee from your own terms depends on the contract. This is information, not legal advice.
If interest is the gap: Lateby
Reminder tools get invoices paid sooner. They do not bill the interest you are owed on the ones that were paid late anyway. Lateby does that one job. Export your sales invoices from Xero, drop the file on the page, and it works out the interest on every late invoice, at the UK statutory rate (Bank Rate plus 8%) or at your own rate. You get a Xero import file with one draft interest invoice per customer, and a PDF notice to send with it. Nothing is uploaded and the drafts wait for your approval in Xero.
The free plan makes the import file and notices for the first three customers in each batch. The Practice plan covers every customer and any number of Xero organisations for US$19 a month or US$190 a year. The code FOUNDING40 takes 40% off the first payment until 30 November, and every charge has a 14-day refund.
To do the same by hand, read how to calculate late payment interest in Xero and import it as draft invoices.
Questions people ask
What is the best software for managing overdue invoices in Xero?
It depends on what is missing. For reminder emails, Xero's own invoice reminders are enough. For chasing by email and SMS, Paidnice starts at US$69 a month and Chaser at US$259 a month. For billing late payment interest, Lateby costs US$19 a month and has a free plan. Prices were checked on 14 November 2026.
Does Xero send overdue invoice reminders automatically?
Yes. Xero's invoicing includes automatic reminders. You choose how often they go out and whether they are sent before or after the due date, and Xero records when each one was sent.
Can Xero add interest to overdue invoices automatically?
No. Xero does not add interest to a late invoice. You work it out and raise it yourself, or use a tool: Paidnice lists late fees and interest charges, and Lateby writes draft interest invoices from a Xero export.
How much does overdue invoice software cost?
On 14 November 2026: Xero's reminders are built into Xero, Lateby is US$19 a month or US$190 a year, Paidnice Essentials is US$69 a month for up to 150 invoices, and Chaser Compact is from US$259 a month, or from US$233 a month billed yearly.
Is there a free option?
Xero's reminders come with Xero. Paidnice says the first 20 actions are free with no card. Lateby is free for the first three customers in each batch. Chaser's site offers a free trial.
Sources, checked on 14 November 2026: Xero: send invoices, Chaser pricing, Paidnice pricing and the Lateby site. Atesen Software makes Lateby and is independent of Xero, Chaser and Paidnice. Xero is a trademark of Xero Limited. Questions: support@atesensoftware.com.