Xero’s New Cash Flow and Payment Follow-Up Tools

Two of the more practical additions to Xero in 2026 aren’t flashy — they’re aimed squarely at a problem every small business owner knows well: cash flow and chasing overdue invoices.

Cash flow suggestions

Xero can now flag when cash is tight and suggest practical responses — like delaying a non-critical bill or prioritising payments that keep core operations (including payroll) running. It’s built from your actual Xero data, so the suggestions are based on what’s really in your file, not a generic rule of thumb.

Automated payment follow-ups

Chasing overdue invoices is one of those jobs that’s easy to put off, which is exactly when cash flow problems creep in. Xero’s payment follow-up tools can automate reminders on overdue invoices on a schedule you set, so collection happens consistently without you needing to remember to send an awkward email.

Useful, but not a substitute for knowing your numbers

These tools are genuinely helpful for time-poor business owners, but a suggestion is only as good as the data behind it — if your bank feeds and reconciliations are behind, cash flow suggestions will be working off an incomplete picture. It’s worth having your file properly maintained before leaning on these features heavily.

We help Norwest and Hills District businesses keep their Xero file accurate enough that tools like this are actually useful, and show you how to set up payment follow-ups without sounding automated or impersonal to your clients. This is part of what we cover in our Xero training & optimisation service.

GoBookaroo provides bookkeeping and Xero administrative support only, and is not a registered BAS Agent, Tax Agent or accountant unless stated otherwise.

If you want ongoing visibility rather than a one-off fix, have a look at our cash flow and budgeting support service.

Book a free consultation if your cash flow visibility could use some work.

See our full roundup: New Xero Features in 2026.