How to Keep Track of Customers that Owe You Money and How to Follow up on Unpaid Invoices in Xero

One of the things that Xero help you do is to keep track of the invoices you’ve sent to customers and which ones are awaiting payment and which are overdue.

It’s important, from a cash flow point of view to follow up on the the customers who owe you money and remind them to pay. A great way to do this is to send statements (shown below how to do this). It’s important you do this, because if you don’t remind them of payment, it may work to your detriment when you need to recover those funds formally.

So how do we keep track of people who owe us money in Xero?

  1. Go to the home screen in Xero and you’ll see in the “People who owe you money” area, people who …. owe you money.
  2. Click on the amount that is overdue and you’ll be taken to the “Awaiting Payment” tab.
  3. Above the tab, there is a button called “Send Statements” click on that button.
  4. Now click on the checkbox next to each customer name that has an overdue balance (this is where there is a number in the “Overdue” column).
  5. In the blue box above, select what statement you’d like to send (explanation below) and then click “Update”.
    • Activity statements are statements that show opening balance, payment, invoices etc… pretty much the ins and outs that happen.
    • Outstanding statements show the amount outstanding. I usually send this to customers as it’s my customers find it easier to understand.
  6. Click:
    • “Email” fill in the details and then press “Send” and this will send their statement to them (also select the check box that says “Send me a copy”, and put a note in the message saying “Please settle overdue accounts immediately”.
    • or click “Print” and then print out the PDF and send via mail to your customer.

You’re done!

Next: Recording Payment for Your Sales Invoices in Xero

Sign up to post comments

Have A Question?

Get in touch!