Cash flow kills businesses. Not lack of sales, not poor products—late payments. As accountants, we see this constantly: profitable businesses struggling because customers don’t pay on time.
AI-powered invoice chasing has transformed how we help clients manage this critical challenge. These tools don’t just send reminder emails; they predict payment behaviour, personalise communication, and dramatically improve collection rates.
Here’s how to implement AI invoice chasing for your clients—and add genuine value to your practice in the process.
The Case for AI Invoice Chasing
Traditional invoice chasing is manual, inconsistent, and emotionally draining. Business owners either:
- Chase too aggressively and damage relationships
- Chase too passively and damage cash flow
- Don’t chase at all because they’re too busy
AI removes these problems by:
- Sending consistent, professional reminders automatically
- Timing communications based on predicted payment behaviour
- Escalating appropriately without human emotion
- Tracking everything for clear audit trails
The Numbers
Practices implementing AI invoice chasing for clients report:
- 25-45% reduction in average debtor days
- 70-80% of invoices paid without manual intervention
- Significant reduction in bad debt write-offs
- Improved client satisfaction (yes, really—they appreciate the help)
Understanding How AI Invoice Chasing Works
Payment Prediction
The most sophisticated tools analyse historical data to predict:
- Which customers typically pay late
- How long each customer usually takes
- What communication style works best
- When payment is most likely after a reminder
This allows personalised chase sequences rather than one-size-fits-all approaches.
Intelligent Escalation
AI systems create escalation paths that feel appropriate:
Stage 1 (invoice date): Friendly confirmation invoice received
Stage 2 (due date - 3 days): Polite reminder payment coming due
Stage 3 (due date): Clear statement payment now due
Stage 4 (due date + 7): Firmer reminder with payment options
Stage 5 (due date + 14): Final notice before escalation
Each message is personalised based on customer relationship, payment history, and invoice amount.
Learning and Adaptation
The AI learns from outcomes:
- If a customer always pays after the first reminder, reduce subsequent messages
- If a customer needs multiple contacts, start earlier
- If certain message styles perform better, favour those
Recommended Tools
Chaser
Chaser is purpose-built for invoice chasing and integrates directly with major accounting platforms.
Key features:
- Multi-channel chasing (email, SMS, postal)
- Payment prediction
- Customisable chase schedules
- Real-time reporting dashboard
- Thank you messages when paid
Best for: Practices wanting a specialist tool with maximum functionality.
Pricing: From £50/month per organisation.
Xero Integration
Xero includes basic invoice reminders, which work well for simpler requirements.
Features:
- Automatic reminders at set intervals
- Customisable email templates
- Basic tracking
Best for: Clients with straightforward chasing needs already on Xero.
Limitations: Less sophisticated than dedicated tools; no payment prediction.
QuickBooks
QuickBooks similarly offers built-in reminder functionality.
Best for: Existing QuickBooks users with simple requirements.
Sage
Sage provides invoice reminder capabilities in its higher-tier products.
Best for: Larger clients with complex requirements already in the Sage ecosystem.
Implementation Guide
Step 1: Assess Client Suitability
Not every client needs AI invoice chasing. Good candidates have:
- Regular invoice volume (10+ per month)
- History of late payments
- Limited time for manual chasing
- Business model relying on credit terms
Poor candidates include:
- Cash businesses
- Clients with few, large customers (manual relationship management better)
- Businesses with complex payment negotiations
Step 2: Review Current Debtor Position
Before implementing, document:
- Current average debtor days
- Worst offenders and amounts
- Existing communication templates
- Any customers requiring special handling
This creates a baseline for measuring improvement.
Step 3: Configure the System
Set up:
Chase schedules: Different schedules for different customer types. A loyal customer of 10 years needs different treatment than a new account.
Message templates: Professional, on-brand communications. Review and refine—these represent your client’s business.
Escalation rules: When to move from automated to manual intervention.
Exclusions: Customers who should never receive automated chases (key accounts under relationship management, customers with known disputes).
Step 4: Test Before Launch
Send test emails to yourself. Check:
- Branding and formatting
- Tone and language
- Links work correctly
- Payment options are clear
Step 5: Launch Gradually
Start with:
- New invoices only (don’t suddenly chase everything)
- A subset of customers
- Close monitoring for the first 2-4 weeks
Step 6: Monitor and Refine
After launch, review weekly:
- Open rates and click rates
- Payment response times
- Customer complaints or issues
- Messages that aren’t working
Best Practices
Tone Matters
The best chase messages are:
- Professional but not aggressive
- Clear about the ask
- Easy to act on
- Appropriate to the relationship stage
Example of good early-stage message:
Subject: Invoice #1234 - Payment Reminder
Hi [Name],
Just a friendly reminder that invoice #1234 for £2,500 is due on [date].
[Pay Now Button]
If you have any questions or need to discuss payment arrangements, please get in touch.
Best regards, [Business Name]
Provide Easy Payment Options
Every chase email should make payment simple:
- Direct payment links where possible
- Clear bank details
- Multiple payment methods
- Contact details for queries
Handle Disputes Properly
Flag disputed invoices immediately to prevent:
- Inappropriate automated chases
- Relationship damage
- Wasted effort
Most tools allow invoices to be paused while disputes are resolved.
Thank People for Paying
Often overlooked: send automated thanks when payment is received. This:
- Confirms receipt
- Maintains good relationships
- Feels professional
Adding Value as an Advisor
AI invoice chasing creates advisory opportunities:
Cash Flow Forecasting
With predictable payment patterns, offer more accurate cash flow forecasting. You know when money is likely to arrive.
Customer Analysis
Identify customers who consistently pay late. Help clients decide whether to:
- Tighten credit terms
- Require deposits
- Fire the customer
Process Improvement
Use insights from chasing data to improve your client’s invoicing:
- Are certain invoice types always paid late? (Perhaps unclear)
- Do certain customers need different terms?
- Is the payment process too complicated?
Credit Policy Development
Help clients create proper credit policies:
- Credit limits by customer
- Payment terms by relationship
- Escalation procedures
- Bad debt provisions
Measuring Success
Track these metrics:
| Metric | Before | After | Target |
|---|---|---|---|
| Average debtor days | X | Y | Z |
| Invoices paid on time | X% | Y% | Z% |
| Bad debt write-offs | £X | £Y | £Z |
| Manual chase time | X hrs/month | Y hrs/month | Z hrs/month |
Review monthly initially, then quarterly once stable.
Common Objections
”Won’t this damage customer relationships?”
Consistent, professional chasing typically improves relationships. Customers know what to expect, and automated messages lack the emotional charge of manual chases.
”Our customers are used to paying late”
That’s exactly the problem. Implementing proper chasing resets expectations. Some customers will adjust; others will reveal themselves as unsuitable.
”We tried reminders and they didn’t work”
Basic reminders aren’t the same as AI-powered chasing. The prediction, personalisation, and multi-channel approach makes a material difference.
Getting Started
To implement AI invoice chasing:
- Identify 3-5 suitable clients – Start with those who’ll benefit most
- Choose your tool – Chaser for sophistication, built-in tools for simplicity
- Set up one client fully – Learn the system properly
- Measure the impact – Document improvements
- Roll out more broadly – Use success stories to encourage adoption
Cash flow management is foundational to business success. AI invoice chasing is one of the highest-impact services you can offer—improving your clients’ businesses while creating ongoing advisory relationships.
Learn more about invoicing tools in our category guide.
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