Setting up QuickBooks to flag overdue invoices automatically

Getting paid on time is the lifeblood of any small business. Yet, so many hours are lost to the tedious, manual task of chasing overdue invoices. If you're using QuickBooks, you already have a powerful accounting tool at your fingertips. The good news is that QuickBooks has several built-in features to help you see which invoices are late. This article provides a practical walkthrough of how to use those features to get a clear view of your outstanding payments.

We'll cover how to find overdue invoices, run essential reports, and even switch on QuickBooks' own automated reminders. But we'll also be honest about where QuickBooks' native tools reach their limit and where dedicated credit control software can take over, transforming your chasing process from a manual chore into a fully automated system that gets you paid faster.

Finding Overdue Invoices in QuickBooks: The Dashboard View

Before diving into detailed reports, your first port of call should be the main QuickBooks Invoices dashboard. This is the quickest way to get a high-level snapshot of your accounts receivable.

To get there, simply navigate from your main dashboard:

1. On the left-hand menu, click on Get paid & pay (or Sales in some versions).
2. Select Invoices.

At the top of this screen, you'll see a series of coloured bars representing the status of your invoices. The most important one for credit control is the bright orange Overdue bar. Clicking this instantly filters your invoice list to show only those that have passed their due date.

This view is excellent for a quick daily check. You can see the customer, the due date, the amount, and how many days late the payment is. From here, you can manually send a reminder for an individual invoice. However, for a more strategic approach to credit control, you need to move beyond this simple list and into proper reporting.

Mastering the Aged Debtors Report in QuickBooks

The single most important tool in any credit controller's arsenal is the Aged Debtors Report (often called the Accounts Receivable Ageing Summary in QuickBooks). This report doesn't just tell you that an invoice is overdue; it tells you how overdue it is.

This is crucial because your chasing strategy should be different for an invoice that is 7 days late versus one that is 90 days late.

How to Run the Aged Debtors Report

1. From the left-hand menu, click on Reports.
2. In the search bar at the top of the Reports screen, type "Aged Debtors" or "Accounts Receivable Ageing Summary". QuickBooks will show you the matching report.
3. Click on the report name to run it.

By default, the report will show you a list of every customer who owes you money. For each customer, it breaks down the total amount owed into time-based columns:

• Current: Invoices that have been issued but are not yet due.
• 1 - 30: Invoices that are between 1 and 30 days overdue.
• 31 - 60: Invoices between 31 and 60 days overdue.
• 61 - 90: Invoices between 61 and 90 days overdue.
• 91+: Invoices more than 90 days overdue.

This breakdown is the foundation of effective credit control. It allows you to prioritise your efforts. A large balance sitting in the "91+" column is a major red flag and requires more urgent and firm action than a small invoice that just tipped into the "1-30" bracket.

Customising the Report for Active Chasing

The default Aged Debtors report is good for analysis, but you can make it even more practical for the act of chasing by adding customer contact details directly to it.

1. Once you've run the report, look for the Customise button in the top-right corner.
2. A side panel will appear. Click on the Rows/Columns section to expand it.
3. Click the Change columns link.
4. A pop-up will appear with a list of available columns. Scroll through and tick the boxes for Customer Phone Number and Customer Email.
5. Click Run report.

Now, your Aged Debtors report includes the contact details for each client, turning it into an actionable worksheet. You can work your way down the list, see who is most overdue, and have their phone number or email right there without needing to click back into their customer record. This simple customisation can save you significant time.

Using QuickBooks' Built-in Automated Reminders

Manually checking reports and sending emails is better than doing nothing, but it's still a time-consuming administrative burden. QuickBooks Online does include a feature to automate some of this process by sending reminder emails on a schedule you define.

While it has its limitations (which we'll discuss next), turning it on is a sensible first step towards automating your credit control.

Setting Up Automatic Invoice Reminders

1. Click the Gear icon in the top-right corner of QuickBooks.
2. Under the "Your Company" column, select Account and settings.
3. In the left-hand menu of the new screen, click the Sales tab.
4. Find the Reminders section and click it to expand the options.
5. Switch the Automatic invoice reminders toggle to On.

Once enabled, you can create a reminder schedule. You have up to three automated reminder slots you can use. A common setup might be:

• Reminder 1: Send a polite reminder 3 days before the due date.
• Reminder 2: Send a firmer reminder 7 days after the due date.
• Reminder 3: Send a final notice 30 days after the due date.

For each reminder, you can specify when it should be sent (before, on, or after the due date) and customise the email that goes out.

Customising the Reminder Email

QuickBooks provides default wording, but it's wise to tailor it to your brand's tone of voice. You can edit the subject line and the body of the email. Use the available placeholders like [Invoice No.] and [Company Name] to automatically pull in the correct details.

For example, a friendly first reminder might have a subject like "Just a gentle reminder about invoice [Invoice No.]" and a polite message. A later reminder could have a more direct subject like "Action Required: Invoice [Invoice No.] is Overdue" and firmer wording.

Don't forget to check the box to "Email a copy to myself" when you're first setting this up. This lets you see exactly what your clients are receiving and gives you confidence that the system is working as expected.

The Limits: Where QuickBooks Needs Help

Using QuickBooks' native reports and automated reminders is a huge step up from manual spreadsheets and calendar alerts. It provides visibility and basic automation. However, for businesses serious about optimising cash flow and minimising admin, these built-in tools have several key limitations.

1. Lack of Sophisticated Escalation

While you can set up a few reminders, QuickBooks doesn't support true escalation logic. A professional credit control process isn't just about sending three emails; it's about the tone, timing, and content changing significantly at each stage. You want a friendly nudge, followed by a firm request, followed by a final notice that mentions late payment charges, and finally, a letter before action. Managing this progression within QuickBooks' simple reminder slots is clunky and inflexible.

2. Email-Only Communication

The world runs on more than just email. For certain clients, an SMS or a WhatsApp message can cut through the noise of a crowded inbox and get a much faster response. QuickBooks' reminders are strictly email-only, limiting your ability to reach customers on their preferred channel.

3. All-or-Nothing Automation

QuickBooks' reminder system is generally "all-or-nothing". You turn it on for all customers or turn it off. You can't easily create different chasing schedules for different types of clients. For example, you might want a more relaxed schedule for a long-standing key client but a much more aggressive one for a new client with no payment history. Dedicated tools allow for this granular control.

4. Handling Replies and Disputes

This is a big one. What happens when a customer replies to an automated reminder? They might say, "Thanks, I'll pay it on Friday," or they might raise a dispute: "I never received the goods."

In either case, you need the automated reminders for that specific invoice to stop immediately. Sending another "Your invoice is overdue" email after they've already promised payment looks unprofessional and damages the client relationship. With QuickBooks' native reminders, you have to remember to go in and manually exclude that invoice from the automation, which adds a layer of manual work and risk of error.

5. Limited Reporting on Chasing Effectiveness

QuickBooks tells you who owes you money. It doesn't tell you how effective your chasing efforts are. Dedicated credit control software provides analytics on key metrics like:

• Average Days to Pay (and how it's changing over time)
• Which reminder emails get the best response
• Which customers are consistently your latest payers

This data is invaluable for refining your process and making strategic decisions about who to offer credit to in the future.

This is where specialist invoice-chasing software comes in. Tools like InvoiceReminder connect directly to QuickBooks and are built specifically to solve these problems, offering sophisticated, multi-stage, and multi-channel automation that QuickBooks itself doesn't provide.

QuickBooks Native Reminders vs. Dedicated Automation: A Comparison

To make the differences clear, here’s a breakdown of how QuickBooks' built-in features stack up against a dedicated credit control automation tool.

Feature	QuickBooks Native Reminders	Dedicated Automation Software (e.g., InvoiceReminder)
Basic Automation	Yes, can send scheduled emails based on due dates.	Yes, this is the core function.
Escalation Rules	Limited to 3-5 simple, sequential reminders.	Unlimited, configurable escalation paths with changing tones and timings.
Communication Channels	Email only.	Multi-channel: Email, plus the option for SMS reminders.
Client Segmentation	Limited. It's largely an "on/off" switch for all customers.	Advanced. Create different chasing schedules for different client groups.
Handling Replies	Manual. You must remember to stop reminders for an invoice if a client replies.	Smarter. Often includes features to auto-pause reminders when a reply is detected or provides a one-click dashboard to manage it.
Customisation	Basic text editing of a standard template.	High. Full control over email design, branding, and content at each stage. Ability to remove provider branding on paid plans.
Performance Analytics	None. Reporting is on what's owed, not on the chasing process itself.	Detailed analytics on chasing effectiveness, days-to-pay, problem clients, etc.
Cost	Included with your QuickBooks subscription.	Varies. Some providers offer free entry-level plans for basic automation.

Don't Forget Your Rights: The UK Late Payment Act

Whichever tool you use, it's vital to know your rights under UK law. The Late Payment of Commercial Debts (Interest) Act 1998 gives you a statutory right to claim interest and compensation from another business if they pay your invoice late. This applies even if it wasn't mentioned in your original terms.

For most UK B2B invoices, you can add:

1. Statutory Interest: 8% plus the Bank of England base rate. This is calculated daily.
2. Fixed Compensation: A one-off charge per invoice, depending on the invoice value.

Debt Value	Compensation You Can Claim
Up to £999.99	£40
£1,000 to £9,999.99	£70
£10,000 or more	£100

You don't have to use this right, but simply mentioning it in your "final notice" email can be a powerful motivator for a non-paying client to settle their bill. It shows you are serious and aware of your legal options. This is general guidance, not legal advice, and your specific contract terms may vary.

Automate the Process, Not the Relationship

The goal of automation isn't to replace human interaction but to eliminate the repetitive, low-value tasks so you have more time for high-value ones. Automating the first few friendly reminders frees you up to personally call the client whose bill is 60 days overdue.

By setting up QuickBooks to give you clear visibility and then layering on smart automation, you transform credit control from a reactive headache into a proactive system that protects your cash flow and lets you focus on running your business.

Frequently asked questions

How do I see a list of all my overdue invoices in QuickBooks?

The quickest way is to go to Get paid & pay > Invoices from the left-hand menu. At the top of the screen, you'll see a coloured bar chart. Click the orange Overdue section to instantly filter your list to show only invoices that have passed their due date. For a more detailed breakdown, run the Accounts Receivable Ageing Summary report from the Reports section.

Can QuickBooks automatically send reminders for overdue invoices?

Yes. You can enable this feature by going to the Gear icon > Account and settings > Sales > Reminders. Here you can turn on automatic reminders and set up a schedule to send emails before, on, or after the invoice due date.

What is the difference between an invoice reminder and a statement?

An invoice reminder is a notification about a single, specific unpaid invoice. A statement of account (or 'statement') is a summary of all transactions between you and a customer over a period, showing all invoices, payments, and credit notes, and concluding with the total outstanding balance. Statements are useful for clients with multiple open invoices.

Is it legal to charge interest on late invoices in the UK?

Yes, for business-to-business (B2B) transactions, the Late Payment of Commercial Debts (Interest) Act 1998 gives you a statutory right to claim interest (currently 8% plus the Bank of England base rate) and a fixed compensation sum (£40, £70, or £100 depending on the debt size) for each late invoice. This right exists even if not stated in your terms.

Do I have to stop automatic reminders if a customer says they will pay?

Yes, absolutely. If a customer replies to an automated email and promises payment or raises a query, you should immediately pause any further automated reminders for that invoice. Sending another "your invoice is overdue" email after they've engaged looks unprofessional and can damage the relationship.

How much does invoice chasing automation cost?

The cost varies. The basic reminder feature within QuickBooks is included in your subscription. For more advanced, dedicated software that integrates with QuickBooks, pricing differs by provider. Some, like InvoiceReminder, currently offer a free plan that provides unlimited automated email reminders at no cost, which is a great starting point for many small businesses. Paid plans typically add more advanced features like SMS reminders and detailed reporting.

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Stop Chasing, Start Automating

QuickBooks offers a solid foundation for seeing who owes you money. But visibility is only half the battle. The real time-drain is the manual process of chasing. That's where dedicated automation comes in. InvoiceReminder connects directly to your QuickBooks account and takes over the entire chasing process. You can set up powerful, multi-stage escalation rules that automatically send friendly reminders, firmer follow-ups, and final notices via email, freeing you from ever having to manually chase an overdue invoice again. With a free plan currently available that includes unlimited email reminders, it's a no-risk way to get your time back and improve your cash flow. InvoiceReminder is built by the team behind WeCovr, a UK company authorised and regulated by the Financial Conduct Authority for its insurance activities, bringing a focus on robust and reliable technology to your credit control process.