Payment Reminder Software: 9 Tools That Chase Late Invoices

Payment reminder software emails your clients automatically when an invoice is about to fall due or is overdue, and keeps chasing on a schedule until the invoice is paid, so you don't have to write or remember every follow-up yourself. There are two kinds: invoicing software with reminders built in, which costs from nothing to about A$40 a month, and dedicated credit-control tools that sit on top of Xero or QuickBooks, which start at about A$99 a month and add SMS, late fees and payment portals.

For most sole traders and small businesses, built-in reminders are enough. Dedicated chasing tools earn their price once you have dozens of overdue invoices a month or someone whose job is credit control. We compared both kinds on when reminders go out, how many you get, what you can customise, and what it costs. Everything was checked on the vendors' own pricing and help pages on 16 October 2026, in AUD including GST unless we say otherwise. InvoiceSonic publishes this guide and is one of the tools compared.

Payment reminder software compared

Do you need dedicated payment reminder software?

Probably not, if you send fewer than about 50 invoices a month. Every invoicing tool in this list except MYOB Solo and Invoice Ninja's free plan can send automatic reminders, and a fixed three-step sequence covers most late payers. Most late payment isn't refusal: the invoice was missed, sat in someone's inbox or is waiting on an approval, and a polite automatic email fixes that.

A dedicated tool like Paidnice or Chaser makes sense when:

• you already use Xero or QuickBooks and want more control than their built-in reminders give you
• you want SMS reminders, not just email
• you want late fees or interest added automatically, according to your terms
• someone on your team spends hours a week on credit control, and the subscription costs less than their time

The scale of the problem is real. Xero's Small Business Insights put the average Australian small business payment at 6.0 days late in the June 2026 quarter (Xero, August 2026), and Atradius found 45% of B2B invoices in Australia were paid late in 2024 (Atradius, 2024). But the fix for most small businesses is turning on the reminders they already have, not buying another subscription.

How we chose and checked these tools

We included the invoicing and accounting tools Australian sole traders and small businesses most often use, plus the two dedicated chasing add-ons that sell in Australia. For each, we read the vendor's pricing page and its help documentation on reminders. We looked for four things: when reminders are sent (before, after or both sides of the due date), how many a plan allows, what you can customise, and whether reminders are locked to a higher plan. Where a vendor didn't state something, we say so.

1. InvoiceSonic: simplest automatic reminders for sole traders

InvoiceSonic sends your client an automatic reminder email when an invoice is 7, 14 and 30 days overdue, up to three in total. It stops as soon as the invoice is marked paid, and you can switch reminders off for any invoice, for example when a client has agreed a payment plan or raised a genuine query. Each reminder links back to the invoice, which can carry a "Pay now" button to your own Stripe, PayPal or Square payment page, plus your bank or PayID details.

Invoice open tracking shows when the client first and last viewed the invoice, so you know whether "I never got it" is true before the reminder goes out. Recurring invoices and an invoice tracker for paid, outstanding and overdue invoices are included in Pro.

Price: the free plan includes one automatic reminder and one tracked send a month, so you can see it work. Pro is A$19 a month or A$168 a year for unlimited invoices and reminders, with a 7-day trial.

Watch out for: the reminder schedule is fixed and only runs after the due date. There's no "due in 3 days" nudge, no SMS and no automatic late fee. If you want those, FreshBooks or a dedicated tool fits better.

2. Zoho Invoice: best free reminders you can customise

Zoho Invoice is free and gives you three reminders, each set a chosen number of days before or after the due date, with editable wording. For a free tool, that's the most control in this list. The free plan allows 500 invoices a year and two users. It doesn't add late fees.

3. Square Invoices: free reminders if clients pay by card

Square's free plan includes automatic reminders timed before or after the due date, plus recurring invoices and a card on file. You pay 2.2% on every online card payment, which on A$5,000 a month of card-paid invoices is about A$110 a month. If most of your clients pay by bank transfer, that fee doesn't apply and Square is genuinely free.

4. FreshBooks: reminders plus automatic late fees

Every FreshBooks plan includes up to three automatic reminders, each set a number of days before or after the due date. FreshBooks can also add a late fee automatically, either a percentage or a flat amount, a set number of days after the due date. Before you turn late fees on in Australia, make sure your quote or terms said they would apply (see our guide to overdue invoices and your rights).

Price: Lite is A$29 a month, for up to 5 billable clients; Plus allows 50.

5. Xero: reminders until the invoice is paid

Xero's invoice reminders can go out before and after the due date, then weekly until the invoice is paid. Clients can pay by card through Stripe, by direct debit through GoCardless, or by PayTo, and the payment reconciles in your accounting file. Ignite (A$37 a month) caps you at 20 invoices, so higher-volume businesses need Grow at A$78 a month.

6. QuickBooks Online: three reminder slots

QuickBooks Online lets you set up to three automatic reminders per invoice, each up to 90 days before or after the due date. You can't exclude individual customers from automatic reminders, which is awkward if one client is on a payment plan. QuickBooks' Australian pricing page currently shows promotional discounts, so check the standing price before you commit.

7. Hnry: automatic chasing built into a tax service

Hnry chases invoices automatically once they are more than two days overdue, and you can switch reminders off per client. You can't change the timing. Hnry costs 1% of your self-employed income plus GST, capped at A$1,500 plus GST a year, because it also handles your tax and GST. It's only worth it for reminders if you want that service anyway.

8. Paidnice: dedicated reminders, SMS and late fees for Xero or QuickBooks

Paidnice is an add-on for Xero and QuickBooks Online. It sends reminders by email and SMS using editable reminder policies, and can automatically add late fees, interest or early-payment discounts to invoices in your accounting file. Clients pay through a Stripe-powered payment portal.

Price: Essentials is A$99 a month (US$69), for up to 150 invoices and 600 emails a month. SMS costs US$0.10 per message. Your first 20 actions are free with no card required.

Watch out for: it's an add-on, so you pay for Xero or QuickBooks as well.

9. Chaser: credit control for finance teams

Chaser is accounts receivable software for businesses with a finance team. It runs configurable chasing workflows from your accounting software, with a customer payment portal, Chaser Pay and late payment fees. The Compact plan is A$399 a month (A$359 a month billed yearly), for businesses under £4 million revenue, with 4 users and 4 workflows. That is more than most sole traders spend on all their software combined, so it only makes sense with a real credit-control workload.

A reminder sequence that works

Whatever tool you use, a short, predictable sequence works better than a long, escalating one. A sensible default for a small business:

1. A few days before the due date: a friendly heads-up with the invoice and payment details. (Zoho, Square, FreshBooks, Xero and QuickBooks can automate this; InvoiceSonic doesn't.)
2. About a week overdue: a polite reminder that assumes it was missed.
3. Two weeks overdue: a firmer reminder that restates the amount and asks for a payment date.
4. A month overdue: a final reminder. After this, stop automating and pick up the phone, or move to a formal letter of demand.

Ready-to-send wording for each step is in our payment reminder email templates, and our payment reminder email sequence guide explains what to check before each one goes out.

Which payment reminder software should you choose?

• You want it free and customisable: Zoho Invoice.
• You're a sole trader who just wants overdue invoices chased without thinking about it: InvoiceSonic, from A$19 a month.
• You want late fees added automatically: FreshBooks, or Paidnice if you're on Xero or QuickBooks.
• You already use Xero and it's enough: turn on Xero's built-in reminders before buying anything else.
• You have a finance team and a lot of overdue debt: Chaser.

For the wider picture, including recurring invoices and auto-charging, see our automated invoicing software comparison. Or try InvoiceSonic free and let your first overdue invoice chase itself.

Frequently asked questions

What is payment reminder software?
Payment reminder software automatically emails (and sometimes texts) clients before or after an invoice's due date, and keeps following up on a schedule until the invoice is paid. It's either built into invoicing software or sold as a separate add-on for accounting software such as Xero and QuickBooks.

What is the best payment reminder software for small businesses?
Most small businesses don't need a separate tool. Zoho Invoice (free), Square Invoices (free) and InvoiceSonic (A$19 a month) all send automatic reminders. If you use Xero or QuickBooks and want SMS reminders or automatic late fees, Paidnice starts at A$99 a month. Chaser, from A$399 a month, suits businesses with a finance team.

Can Xero send payment reminders automatically?
Yes. Xero can send invoice reminders before and after the due date, then weekly until the invoice is paid. Note that Xero's Ignite plan is capped at 20 invoices.

Is there free payment reminder software?
Yes. Zoho Invoice and Square Invoices both include automatic payment reminders on their free plans. InvoiceSonic's free plan includes one automatic reminder a month.

How many payment reminders should I send?
Three or four is enough for most invoices: one shortly before or on the due date, one about a week overdue, one at two weeks and a final reminder at about 30 days. After that, a phone call or a formal letter of demand works better than more emails.

Can I add a late fee to an overdue invoice in Australia?
Only if your client agreed to it in advance, for example in your quote, contract or terms of trade. You can't add a late fee that wasn't part of the agreement. Some tools, including FreshBooks and Paidnice, can add agreed late fees automatically.