Invoicing
Payment terms clearly show when payments must be made, helping businesses handle their cash flow and keep good financial relationships. Setting fair, firm payment terms from the beginning keeps your business running smoothly and without stress. Xero helps you easily set clear payment terms for customers and suppliers, so you can manage expectations and predict your cash flow confidently.
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Knowing when money will come in helps with budgeting and planning expenses and make cash flow easier to predict. Ensures a steady income stream to cover operational costs.
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Clear due dates encourage customers to pay on time reducing late payments.
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Transparency builds trust with customers and suppliers creating stronger business relationships.
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Everyone understands the payment expectations upfront avoiding confusion and disputes.
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mproves Business Stability – Ensures a steady income stream to cover operational costs.
HOW DO YOU USE THIS?
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Every time you issue an invoice, your payment terms tell customers when and how they need to pay (e.g., "Due in 7 days" or "Net 30").
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Suppliers will also set payment terms on their invoices, letting you know when your business needs to pay them (e.g., "Payable within 14 days")
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If you have ongoing clients or suppliers, including payment terms in agreements ensures both parties are clear on expectations before work begins.
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By tracking upcoming payments (both incoming and outgoing), you can predict your cash flow and avoid shortages
WHEN WILL YOU USE IT?
IT ALL BEGINS WITH AN IDEA
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IT ALL BEGINS WITH AN IDEA ✦
Go to the Business menu and select Online payments. Alternatively, click your organisation name, go to Settings, and select Payment services.
Click the Add new payment service tab.
Choose the payment service you want to connect.
Follow the steps to sign up or log in to your payment provider.
(Optional) If your payment service doesn’t integrate with Xero, request a custom URL from your provider. This lets you link the service to your invoice template so you can accept online payments.
Once everything is set up, apply the payment service to your invoices.
HOW TO ADD A PAYMENT SERVICE
HOW TO ADD TO YOUR INVOICES
Adding a payment service to an invoice template allows customers to pay invoices online. Once applied, this becomes the default payment service for all invoices using that template.
Go to the Business menu and select Online payments. Alternatively, click your organisation name, go to Settings, and select Payment services.
Click the Manage connected services tab.
Under your list of connections, click Manage themes or Manage branding themes.
Under Branding themes, find the invoice template you want to update and select the payment service provider.
Click Save.
If both GoCardless direct debit and Stripe auto pay are enabled for the same customer, Stripe auto pay will process the payment.
CHANGE THE PAYMENT SERVICE
If you need to update the default payment service:
Click your organisation name, go to Settings, and select Invoice settings.
Find the invoice template you want to update, click Options, then select Edit.
Under Payment Services (Credit Card, PayPal, or Direct Debit), choose the new payment service.
Click Save.
This ensures the correct payment service is applied to all invoices using that template.
ON YOUR INVOICE
HOW TO SET DEFAULT DUE DATE
Click your organisation's name and select Settings.
Select Invoice settings.
Click Default Settings.
Under Sales Invoices Default Due Date (Optional), enter a number and select a due date option – for example: ‘Due 7 day(s) after the invoice date’.
Click Save. to Add to a Invoice Template
Save yourself time by adding default due dates to invoices. You can always change the due date on invoices for customers with different agreement terms.
It’s a good idea to agree payment terms with your customer before you do the work so there are no surprises later on. For instance, you might give customers more time to pay larger invoices