Best AR Automation and Collections Software for Xero (2026)

Disclosure: Abivo is our product. Facts about other tools come from their own websites as of October 2026.

The short answer: If your collectors spend most of the week on routine follow-up, Abivo is built for that job, because its AI agent Kate calls, texts and emails customers about overdue invoices and hands disputes to your team. If your priority is reminder schedules, late fees, payment portals or cash application, Upflow, Chaser, Invoiced, Kolleno, Paidnice, Peakflo and Gaviti all state a Xero integration and are worth a look.

Xero makes sending invoices and tracking who owes what straightforward. As a business grows, though, the receivables ledger grows with it. Someone still has to phone the customer who has ignored every reminder, note the promise to pay they make on that call, and keep an eye on which accounts are drifting past 60 days. Once that work fills several people's weeks, it is time to look at dedicated AR automation and collections software.

This guide covers eight tools that say, on their own websites, that they integrate with Xero. We left out tools whose Xero integration we could not confirm on the vendor's site. Some names you may know from larger ERP roundups, such as Tesorio, did not list Xero when we checked; if you are weighing it for another system, see our Tesorio alternative page. We did not include pricing, because it changes often and most vendors quote by volume.

Which AR Tools Integrate With Xero? The Comparison Table

Abivo: An AI Agent That Does the Follow-Up

Best for: Teams whose collectors spend the week on routine follow-up and want an agent that does phone, text and email follow-up.

What it does: Abivo's AI agent, Kate, follows up on overdue invoices by phone, text and email, in your company's brand. Reminders name the job, site, PO or billing period from the invoice, and one message can cover all open invoices on an account. On each conversation she captures promises to pay, disputes and next steps. When a customer disputes an invoice, refuses to pay, or asks to speak to a person, Kate hands the account to your team, and sensitive accounts can go to a named owner. You can set the cadence per account or segment, pause follow-up on a single invoice, and pause Kate or take over any customer at any time. Managers get dashboards, aging views, alerts and a full audit trail of every touch.

Abivo is built around taking the routine calls, texts and emails off your collectors' plate, so their hours go to disputes and key accounts.

Proof: OFS Group, a fire protection company, went from four collectors on the phones to one while recovering $842,518 in four months and cutting DSO by more than 30 days. Read the OFS Group case study.

Integration notes: Kate follows up with customers in many countries and works in any currency. Abivo connects to Xero, plus NetSuite, Sage Intacct, Microsoft Dynamics 365, SAP, QuickBooks, Chargebee and CSV. See how Abivo works as the automated collector for your Xero account. If you want to size your overdue balance first, here is how to export an AR aging report from Xero.

Worth knowing: Abivo focuses on follow-up and the conversation with the customer. If your main need is late fees, payment plans or matching remittances, look at the tools below as well.

Upflow: Collaborative Workflows on Live Xero Data

Best for: Teams that want collaborative collections workflows and AR dashboards running on live Xero data.

What it does: Upflow offers adaptive collection workflows based on customer context and risk, multi-channel outreach, and pre-built AR dashboards that show DSO, aging and collection metrics.

Integration notes: Upflow states a native Xero integration with a three-click OAuth setup. It says AR data syncs one way from Xero, so invoices, payments and customer records are pulled into Upflow and refreshed about every 10 minutes, while your financial records stay in Xero. Upflow imports Xero contacts marked as customers or those with at least one receivable invoice.

Comparing the two? See our Upflow alternative page.

Chaser: Broad Reminder Channels Plus Credit Tools

Best for: Teams that want a wide range of reminder channels and emails that come from their own address.

What it does: Chaser sends personalized reminder emails from your own email address, with multiple chasing schedules, automatic thank-you messages when customers pay, email open tracking, monthly statements, customer payment behavior insights and a payment portal. Across its product, Chaser also lists SMS reminders, automated letters, automated phone calls and in-app calling.

Integration notes: Chaser says it syncs all your Xero invoices and customer information, with a secure sync automatically before every reminder is sent, every hour, or on demand. Data flows from Xero into Chaser to drive the reminders.

Comparing the two? See our Chaser alternative page.

Invoiced: Dunning, Payment Plans and Subscription Billing

Best for: Teams that want automated dunning plus payment plans and subscription billing.

What it does: Invoiced offers custom invoicing with automated chasing, payment plans, subscription billing management, automatic dunning and a dashboard of the latest transactions.

Integration notes: Invoiced describes a two-way Xero connection. It says it imports outstanding invoices, contacts and recorded payments from Xero, and writes invoices created in Invoiced back to Xero while reconciling payments received. You connect it from the Apps section inside Invoiced.

Kolleno: Drag-and-Drop Dunning and Central Reconciliation

Best for: Teams that want drag-and-drop dunning workflows and one place to reconcile payments from several processors.

What it does: Kolleno offers drag-and-drop dunning workflows with branching logic, integrated email, SMS and phone communications, dispute management, performance analytics, multiple payment methods, automatic cash application and centralized reconciliation across payment processors.

Integration notes: Kolleno describes an official Xero integration available through the Xero App Marketplace. It says Xero receivables data syncs into Kolleno, and that the Xero record is updated immediately after a payment is made.

Paidnice: Reminders, Statements and Late Fees on Autopilot

Best for: Teams that want automated late fees, statements and reminders working directly on Xero data.

What it does: Paidnice sends email and SMS reminders from your own domain, with rules set per contact group. It can apply flat late fees or interest, send scheduled weekly or monthly statements with payment links, offer a branded payment portal and installment payment plans, and escalate overdue accounts as call tasks, credit stops or formal letters. Its dashboards include DSO tracking and customer risk scoring.

Integration notes: Paidnice says it reads invoices, contacts, contact groups, payments, credit notes and tracking categories from Xero, and writes late fee and interest charges back to Xero, either on the original invoice or as a new invoice. Reminders and fees stop when a payment lands in Xero. It describes this as "no import and no second ledger."

Peakflo: Receivables and Payables on One Platform

Best for: Teams that want accounts receivable and accounts payable automation on one platform.

What it does: Peakflo offers invoice customization, automated multi-channel reminders by customer segment, a finance CRM with centralized collections task management and an audit trail, reconciliation through virtual accounts, AI cash application, real-time collection tracking and a customer payment portal.

Integration notes: Peakflo states that you can integrate Xero with Peakflo to automate invoice-to-cash and procure-to-pay processes. Its Xero page does not list the specific fields that sync, so ask what moves in each direction. Comparing the two? See our Peakflo alternative page. Comparing the two? See our Peakflo alternative page. Comparing the two? See our Peakflo alternative page.

Gaviti: Collections, Credit, Disputes and Cash Application in One Suite

Best for: Teams that want collections, credit management, dispute handling and cash application in one AR suite.

What it does: Gaviti offers AR management and automation, collections analytics, invoice distribution, cash application, credit monitoring, dispute management, a customer self-service portal and an AI assistant.

Integration notes: Gaviti has a dedicated "Accounts Receivable Automation for Xero" page and lists Xero among its ERP integrations. That page does not describe how the sync works, so ask Gaviti what data moves in each direction and how often.

How Should a Team With Three or More Collectors Choose?

Once you have three or more people working the ledger, the question changes. It is less about whether reminders go out and more about where your collectors' hours go. A few practical steps: For a wider view across ERPs, see our guide to the best collections software for AR teams with 3 or more collectors. We also compare tools for QuickBooks and NetSuite.

Measure where the week goes

Ask each collector to tag a typical week: routine reminders and check-in calls, chasing promises that were missed, working disputes, and account research. If most hours land in routine follow-up, an agent that makes those calls and sends those texts will move the needle more than a better email template.

Decide which channels you actually need

Check which channels each vendor states: email, text, letters, phone. If your customers tend to answer the phone sooner than they answer email, weight phone follow-up heavily.

Check the handoff

With several collectors, the hard part is routing. Ask each vendor how disputes, refusals and "let me talk to a person" requests reach the right collector, and whether a collector can pause automation on a sensitive account.

Look at the Xero sync in detail

Ask what syncs (invoices, contacts, payments, credit notes, tracking categories), which direction, and how often. One-way and two-way syncs both work; the point is knowing which records the tool will change in Xero and which it only reads.

Split responsibilities by account tier

A common pattern is letting automation work the long tail of smaller balances while senior collectors own strategic and disputed accounts. Make sure the tool lets you segment that way, for example by Xero contact group.

Pilot on real overdue accounts

Export your Xero AR aging report, pick a slice of overdue customers, and compare promises to pay and cash collected against your usual process over a few weeks.

Practical Takeaways

• Start from the bottleneck: routine follow-up points to an agent, late fees and statements point to a reminder tool, matching remittances points to reconciliation.

• Check how each tool syncs with Xero (one way or two way, and how often) before you switch anything on.

• Ask every vendor how disputes and "speak to a person" requests reach a named collector.

• Pilot on a slice of real overdue accounts and judge it on cash collected and accounts touched each week.

Frequently Asked Questions

What is the best collections software for Xero?

It depends on the bottleneck. If your collectors spend most of their week on routine follow-up calls, texts and emails, Abivo is designed for that. If late fees, payment plans, a payment portal or cash application is the priority, Upflow, Chaser, Invoiced, Kolleno, Paidnice, Peakflo and Gaviti each state a Xero integration.

Which Xero add-ons send reminders by text, letter or phone?

Several tools in this guide go beyond email: Chaser and Paidnice add SMS and letters, Kolleno adds SMS and phone communications plus dunning workflows, Paidnice adds late fees and statements, and Abivo's agent Kate handles phone, text and email follow-up and hands disputes to your team.

Can AI make collection calls for Xero users?

Yes. Abivo's agent Kate calls, texts and emails customers about overdue invoices, records promises to pay and disputes, and hands disputes and "speak to a person" requests to your team. Chaser also lists automated phone calls among its reminder channels.

How do I reduce DSO in Xero without hiring more collectors?

Start by finding where collector time goes, then automate the routine follow-up so people can focus on disputes and large accounts. OFS Group used Abivo to go from four collectors on the phones to one while recovering $842,518 in four months and cutting DSO by more than 30 days.

Does AR automation software replace my collections team?

It changes what the team works on. Tools like Abivo handle routine follow-up and hand disputes, refusals and requests for a person to your collectors, who can pause or take over any customer. Your team keeps the judgment calls and the relationships.

Ready to see Kate work your Xero overdue accounts? Get started with Abivo.