The problem
A social enterprise selling workshops to schools and services to the council often waits 30 to 60 days to be paid, and cash runs tight while it waits. Writing 25 invoices a month in Word at 10 minutes each (250 minutes) and chasing 8 overdue ones at 20 minutes each (160 minutes) takes 410 minutes, about 6.8 hours a month.
What the AI does
Xero is online accounting software. Its invoicing page says you can set up repeating invoices for regular customers so Xero creates and sends them, flags invoices once they pass their due date and emails polite reminders on your behalf, checking your bank first to see which are still outstanding. Invoices can carry a Pay now button for card or Direct Debit through Stripe or GoCardless. Ignite is limited to 20 invoices, so a business sending 25 a month needs Grow at $52£39€46A$75C$73 a month. The plan lists don't say which plans include reminders, so check in your plan before relying on them.
A worked example
A community interest company in Bradford runs wellbeing workshops for 12 schools on monthly contracts and one-off sessions for the council and housing associations, about 25 invoices a month. A part-time finance and admin worker handles invoicing.
Before
About 6.8 hours a month writing invoices and chasing late payers
After
About 1.5 hours a month checking repeating invoices and the few reminders that don't work
What it's worth
About $126£95€113A$182C$179 a month in staff time saved, against $52£39€46A$75C$73 for Xero Grow. 5.3 hours a month saved (6.8 minus 1.5), valued at an assumed $24£18€21A$35C$34 an hour. Grow is $52£39€46A$75C$73 a month excluding VAT; new UK customers can get 90% off the base plan for the first 6 months. Payment provider fees come on top if customers pay online.
How to set it up
- Sign up for Xero Grow and connect the business bank account.
- Set up each school's monthly invoice as a repeating invoice with its purchase order number.
- Turn on invoice reminders and write the wording in your own polite tone.
- Connect Stripe or GoCardless if customers want to pay online, and check the fees first.
- Each week, look at the overdue list and call anyone the reminders haven't moved.
What goes wrong
- Councils and schools often pay only against a purchase order or through their own portal. A reminder won't help if the invoice is missing the PO number.
- Ignite's 20-invoice limit catches out growing businesses; Grow has no invoice cap listed.
- Reminders go to the email address on the contact. Check you have the accounts payable address, not the person who booked the workshop.
- Restricted grant money still needs tracking for funders; invoicing doesn't do that on its own.