The problem
Office lunches and corporate events are invoiced after the event on 30-day terms, and invoices sit with the wrong person until someone chases. If a caterer sends 40 invoices a month, 15 go overdue and each takes 15 minutes of emails and calls, that's 225 minutes, about 3.8 hours a month, and the cash arrives late.
What the AI does
Xero is accounting software. Its invoicing page says it flags invoices as soon as they pass their due date, emails polite reminders for you, and lets customers pay by card or Direct Debit from a Pay now button on the invoice through providers such as Stripe or GoCardless. You turn on reminders, add a payment service, and put the purchase order number and the accounts email on every invoice. Ignite allows only 20 invoices, so 40 a month needs Grow.
A worked example
A corporate and event caterer in Manchester sends about 40 invoices a month for office lunches and events on 30-day terms. It moves from Ignite to Xero Grow, turns on reminders and adds online payments.
Before
15 overdue invoices a month x 15 minutes of chasing = 225 minutes, about 3.8 hours a month
After
About 5 overdue invoices still needing a personal call x 15 minutes = 75 minutes, 1.3 hours a month
What it's worth
About $84£63€75A$121C$118 a month saved, against $52£39€46A$75C$73 for Xero Grow. That's 2.5 hours (225 minus 75 = 150 minutes) at an assumed $33£25€30A$48C$47 an hour; 10 fewer overdue invoices is an assumption. If you already pay for Grow, there's no new cost. Card and Direct Debit payments through Stripe or GoCardless have their own fees, which aren't counted, and neither is the value of cash arriving sooner.
How to set it up
- Check your plan: Ignite allows only 20 invoices, so 40 a month needs Grow at $52£39€46A$75C$73 excluding VAT.
- Turn on invoice reminders and read the wording a client receives; keep it polite and include your bank details.
- Connect an online payment service such as Stripe or GoCardless so invoices carry a Pay now button, and check its fees first.
- Ask for the purchase order number and the accounts payable email when you take each booking, and put both on the invoice.
- Each week, phone anyone more than 14 days overdue yourself.
What goes wrong
- Xero's page doesn't say how far you can change reminder timing or wording, so check the settings before you rely on them.
- Reminders go to the email on the contact. If that's the office manager rather than accounts, nobody pays.
- Card payments carry a fee from your payment provider; decide whether to offer cards on large invoices.
- Reminders don't replace terms. Put payment terms and late payment wording in your booking confirmation.