Xero's standard invoice reminder system allows up to five scheduled email reminders. After those configured reminders have been sent, overdue invoices remain visible in Xero for further follow-up, while newer JAX Payment Follow-Ups are expanding Xero's collections automation capabilities. For B2B companies extending net terms to customers, integrating AR automation tools can extend Xero's capabilities with AI-powered payment reminders, detailed aging analysis, and intelligent escalation sequences that adapt to customer payment behavior.
The gap between basic accounting workflows and more advanced B2B receivables requirements creates opportunities for platforms like Resolve Pay that combine net terms financing with automated collections to help businesses maintain healthy cash flow while offering competitive payment terms.
Xero serves as the accounting foundation for 5 million businesses globally, providing cloud-based invoice management, bank reconciliation, and financial reporting. For B2B sellers managing net payment terms, Xero handles the core accounting workflows but can be supplemented with additional tools for more sophisticated receivables management.
The platform's native AR capabilities include:
For companies offering Net 30, 60, or 90 terms, these native features provide a starting point. Additional automation tools can enhance collections workflows and cash flow management for businesses with growing receivables volume.
Xero's standard reminder schedule can be configured with up to five reminders. Users can customize timing and messaging, though the system shares one schedule across the organization.
Modern AR automation extends beyond simple email cadences. Advanced platforms enable:
Resolve Pay's agentic collections approach combines automated sequences with AI-powered capabilities that support systematic follow-up while preserving customer relationships.
AR aging reports form the foundation for collection prioritization and cash flow forecasting. These reports group unpaid invoices into standard date ranges to show how long each amount has been outstanding.
The typical aging structure includes:
Bad debt allowances generally increase as receivables age. Xero provides illustrative allowance percentages for different aging buckets, but businesses should set their own assumptions using historical write-offs, customer risk, and industry conditions. Reviewing aging reports regularly can help teams identify overdue accounts before collection risk increases further.
Aging reports enable multiple business-critical analyses:
For B2B companies extending net terms, integrating aging intelligence with credit decisioning creates closed-loop systems where payment history informs future credit limits and collection intensity.
Artificial intelligence is transforming AR from reactive collections to proactive workflow automation. The shift moves beyond rules-based triggers to adaptive systems that adjust in real-time based on customer payment behavior.
Five primary use cases are emerging across AR platforms:
These capabilities can reduce manual AR work by automating repetitive collections, reconciliation, and payment-processing tasks while giving finance teams more time to focus on exceptions.
Xero's AI initiative, JAX (Just Ask Xero), has evolved from a conversational query interface to an agentic platform. Current capabilities include auto-reconciling bank transactions, creating invoices across channels, and answering business questions using real-time ledger data.
Xero announced new JAX collections and cash flow capabilities at Xerocon London in July 2026. By October 2026, Xero's product updates showed Payment Follow-Ups entering its JAX feature set, although availability and individual capabilities can vary during rollout. JAX capabilities include:
This evolution signals Xero's recognition that AR workflows benefit from agentic automation while validating the market for sophisticated collections tools.
Advanced AR automation directly affects working capital, liquidity, and credit exposure. For companies offering net payment terms, these impacts multiply across the customer portfolio.
AI-powered AR automation can help businesses reduce DSO by making payment follow-up more consistent, improving reconciliation, and identifying accounts that need attention earlier. For a company with USD 5 million in annual revenue, reducing DSO by 14 days frees approximately USD 192,000 in working capital that would otherwise remain locked in receivables.
The calculation is straightforward: daily revenue multiplied by DSO reduction equals freed capital. For businesses experiencing the US average of 27.9-day payment cycles with 7.8 days late, automation that brings payments closer to terms creates substantial cash flow improvement.
Non-recourse financing structures can help reduce sellers' exposure to buyer credit defaults on eligible approved financed invoices. For eligible approved invoices, Resolve Pay's non-recourse structure can reduce seller exposure to covered buyer defaults while providing advance payments to support cash flow. Advance amounts and funding timing depend on underwriting, invoice eligibility, verification, and applicable program terms.
AR requirements are better evaluated by receivables complexity than by fixed revenue thresholds. Relevant factors include:
Companies extending net terms may need capabilities beyond standard accounting workflows when receivables volume, collection complexity, or manual work begins to increase.
Effective AR solutions integrate with existing infrastructure:
Resolve Pay supports integrations with major ecommerce, ERP, and accounting platforms, including Xero, and provides flexible REST APIs for custom implementations. Implementation timing depends on the systems involved, required data flows, and configuration needs.
Integration between Xero and specialized AR platforms creates workflows that neither system achieves alone. The combination addresses the full receivables lifecycle from credit decisioning through payment collection.
Bidirectional data flow enables:
This integration eliminates the double-entry burden that undermines AR efficiency when systems operate independently.
For B2B companies using Xero to manage net payment terms, Resolve Pay provides integrated solutions that combine credit decisioning, financing, and collections automation in one platform.
Resolve Pay's capabilities complement Xero's accounting foundation by adding:
By integrating with Xero, Resolve Pay enables businesses to extend net terms confidently while maintaining healthy cash flow and reducing credit exposure on eligible transactions. The platform supports businesses looking to offer competitive B2B payment terms without building large credit departments or absorbing working capital strain.
Xero's standard reminder system supports up to five scheduled email reminders. For more advanced follow-up, Xero has begun introducing JAX Payment Follow-Ups, while dedicated AR platforms can provide additional collections automation and segmentation capabilities including multi-channel communication, customer-specific sequences, automated fee calculation, payment plan management, and intelligent escalation workflows. The distinction matters most for B2B companies with diverse customer portfolios requiring different collection approaches.
Core AR metrics include Days Sales Outstanding (DSO) measuring average collection time, Aging Distribution showing percentage of receivables in each time bucket, Collection Effectiveness Index measuring success rate of collection efforts, Bad Debt Ratio comparing write-offs to total credit sales, and Average Days Delinquent tracking how far past terms customers typically pay. US small businesses average 27.9 days to receive payment with 7.8 days late beyond terms.
Many AR platforms support multi-currency operations, though feature parity varies by geography. Key considerations include payment method availability by region, compliance requirements that differ by jurisdiction, language support for customer communications, and time zone handling for reminder scheduling. Xero supports 160 currencies globally. Verify specific country support during vendor evaluation, particularly for markets outside major regions.
Late fee and interest rules vary by contract and jurisdiction, so AR automation should be configured using terms that have been reviewed for the applicable customer and location. In the US, requirements can vary by state and contract. Canadian interest rules include specific disclosure requirements under the federal Interest Act, but the Act's 5% provision should not be treated as a universal B2B late-fee cap. Businesses should verify applicable law before automating late fees.
Credit intelligence informs collection strategy by identifying which customers require different follow-up approaches. Companies that assessed creditworthiness upfront possess data that should govern downstream collection intensity and escalation triggers. For example, a customer with strong credit who pays one invoice late warrants different treatment than a customer with limited credit history who habitually delays payment. Integrating credit decisioning with collections creates systems where payment behavior refines future assessments.
This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.