The problem
A haulier pays for fuel every week but waits 30 days end of month to be paid, and some customers stretch that to 60. If a firm sends 40 invoices a month and the office spends 10 minutes chasing each of 25 that go overdue, that's 250 minutes, about 4.2 hours a month of phone calls and emails.
What the AI does
Xero is accounting software. Its invoicing page says it flags invoices once they pass their due date, emails polite reminders for you, and lets customers pay by card or Direct Debit from a Pay now button through providers such as Stripe or GoCardless. You turn on reminders, write the wording once, and put the customer's purchase order number and the accounts email on every invoice. The office then phones only the customers who ignore the reminders.
A worked example
A 6-truck haulier in Grimsby moving chilled and ambient loads for food processors, invoicing 40 loads a month on 30 days end of month terms.
Before
25 invoices a month overdue, each chased by hand at about 10 minutes: 250 minutes, about 4.2 hours
After
Reminders sent automatically; about 10 invoices still need a phone call at 10 minutes: 100 minutes, about 1.7 hours
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 (250 minus 100 = 150 minutes) at an assumed $33£25€30A$48C$47 an hour; 15 fewer invoices needing a call is an assumption. If you already pay for Grow, there's no new cost. Card and Direct Debit payments have their own provider fees, which aren't counted, and neither is the value of getting paid sooner.
How to set it up
- Check your customers' accounts email addresses in Xero, so reminders reach the people who pay.
- Turn on invoice reminders and write the wording: the load, the delivery date and your terms.
- Connect a payment provider so the invoice carries a Pay now button.
- Attach the POD or put its reference on every invoice, so no customer can hold payment for want of it.
- Each Friday, ring anyone more than 14 days overdue after the reminders.
What goes wrong
- Xero's pricing page doesn't list reminders per plan, so check yours includes them. Ignite allows only 20 invoices a month, so 40 needs Grow.
- Many shippers only pay against a purchase order number. An invoice without one will sit unpaid however many reminders go out.
- Reminders don't replace terms. Your rate confirmation should state payment terms and your right to statutory late payment interest.
- Card payments carry a provider fee; decide whether to offer cards on large invoices.