How to Send Xero Statements to Debtors: Complete AU Guide (2026)

2026-03-02 · 10 min read · PaidMate Team

When a customer has multiple overdue invoices, sending individual invoice reminders can feel disjointed — and for the customer, confusing. A Xero account statement solves this by presenting a clear, consolidated view of everything they owe, when it was due, and what they have already paid. It is one of the most underused tools in Xero for accelerating payment from customers with aged debt.

This guide walks through exactly how to generate and send statements in Xero, the different statement types available, best practices for Australian businesses, and how to build a systematic statement-sending routine that reduces your debtor days without requiring hours of manual effort.

What Is a Xero Account Statement?

An account statement is a document generated from Xero that summarises all outstanding transactions for a specific contact over a chosen period. Unlike a single invoice reminder, a statement shows:

• All invoices issued during the period, with dates and amounts
• All payments received, applied credits, and adjustments
• The current outstanding balance
• In some formats, an ageing breakdown (current, 30 days, 60 days, 90 days+)

For B2B businesses in Australia where clients place multiple orders per month, statements are a standard part of the accounts receivable toolkit. Many Australian companies — particularly in trade, wholesale, and professional services — expect to receive monthly statements from their suppliers as a matter of course.

Types of Statements in Xero

Xero offers two main statement formats:

1. Outstanding Statements

Shows all unpaid invoices currently owing, regardless of when they were issued. This is the most useful format for collection purposes because it clearly communicates: here is exactly what you owe us right now. Use this when following up a customer with multiple overdue invoices or a long-running credit relationship.

2. Activity Statements

Shows all activity — invoices raised, payments received, credit notes applied — during a specified date range. This is more useful for customers who want to reconcile their accounts payable with your records. Use activity statements when a customer queries their balance or when conducting end-of-month reconciliation with key accounts.

How to Generate and Send Statements in Xero: Step by Step

Step 1: Navigate to the Contact

Go to Contacts in the top menu, then search for and open the customer record. On the contact page, you will see their full transaction history and any outstanding invoices.

Step 2: Click "Send Statement"

Near the top of the contact page, click the Send Statement button (in some Xero views this may appear under a menu or the options button). This opens the statement generation screen.

Step 3: Choose Statement Type and Date Range

Select either Outstanding or Activity. For an outstanding statement, you generally do not need to set a date range — Xero will pull all unpaid invoices. For an activity statement, set the start and end dates (e.g., the first and last day of the prior month for a monthly statement run).

Step 4: Preview Before Sending

Always preview the statement before sending. Check that the amounts are correct, there are no unexpected credits or write-offs appearing, and the contact’s email address is current. Sending a statement with incorrect figures can create disputes that delay payment further.

Step 5: Customise the Email Message

Xero uses a default email template for statements, but you can — and should — customise it. Go to Settings → Email Templates → Statement to update the default wording. A good statement email for collection purposes is:

• Brief and professional
• Clear about the total amount outstanding
• Specific about your preferred payment methods and details
• Friendly in tone — avoid language that sounds like a legal threat at this stage

Example: “Please find attached your account statement as at [date]. Your outstanding balance is $[amount]. Please arrange payment via EFT to the account details below, or pay online here: [link]. If you have any questions, please call us on [number]. Thank you for your business.”

Step 6: Send or Download as PDF

You can email the statement directly from Xero or download it as a PDF to send via your own email client. Sending via Xero is faster and keeps a record in the contact’s history. Downloading and sending manually gives you more control over the email appearance and the ability to add attachments such as payment details or a cover letter.

Sending Statements in Bulk: The Aged Receivables Approach

For businesses with many debtors, sending statements one by one from individual contact pages is impractical. Xero supports a more efficient bulk approach via the Aged Receivables report:

1. Go to Reports → Aged Receivables
2. Run the report as at today or end of last month
3. Export to Excel or CSV
4. Filter for contacts with balances above your threshold (e.g., more than $100 outstanding) and more than 30 days old
5. Return to each contact in Xero and send their statement

While this is more systematic than ad hoc sending, it is still largely manual. Third-party tools and Xero add-ons can automate this process, triggering statement delivery automatically based on rules you set — for example, sending an outstanding statement to every contact with an account more than 45 days overdue on the first business day of each month.

Best Practice: Monthly Statement Run for Australian B2B Businesses

The most effective cadence for most Australian B2B businesses is a monthly statement run, timed to coincide with when your customers’ accounts payable teams are processing payments. In Australia, this is typically in the first week of the month or around the 20th, depending on the customer’s payment run cycle.

A practical monthly statement routine:

• 1st business day of the month: Run Aged Receivables report for all contacts with amounts more than 30 days overdue
• Send outstanding statements to all contacts on the list with a note: “Your account statement for [Month] is attached”
• Follow up any statements not acknowledged or paid within 5 business days with a phone call
• For 60+ day accounts: Send statements and escalate to a more urgent follow-up communication

Consistency matters enormously. Customers who receive statements regularly know you are tracking their account. It signals professionalism and prevents the assumption that because they have not heard from you, the debt has been forgotten.

Customising Your Statement Template in Xero

Xero allows you to customise the statement PDF template under Settings → Invoice Settings → Statement Template. Recommended customisations for Australian businesses:

• Add your logo and brand colours
• Include your full bank account BSB and account number prominently
• Add your BPAY reference if applicable
• Include a “Pay Online” link if you use Stripe or another payment gateway
• Add your ABN (required for invoices above $82.50 including GST, and best practice on statements)
• Include a contact name and phone number for account queries

A well-designed statement reduces the number of inbound queries from customers who cannot figure out how to pay. Every payment barrier you remove accelerates collection.

Statements vs Invoice Reminders: When to Use Each

Both tools serve different purposes in the accounts receivable toolkit:

• Invoice reminders are best for individual invoices approaching or just past their due date — they are transactional and specific.
• Account statements are best for customers with multiple invoices outstanding, for periodic account reviews, and as a softer “here is what you owe us overall” communication.

For early-stage overdue accounts (under 30 days), invoice reminders are usually sufficient. Once an account has two or more overdue invoices, or has been outstanding for more than 30 days, switch to statements to give the customer a full picture. Some businesses use both: automated invoice reminders for all invoices, plus monthly statements for anyone with an overdue balance.

Tracking Statement Delivery and Opens

When you send a statement via Xero’s email function, the contact history records that a statement was sent. However, Xero does not provide open tracking for statements sent this way. If you need to know whether a statement was received and opened — which matters in escalated collection situations — consider:

• Sending via your own email client (Gmail, Outlook) where open tracking tools are available
• Using a Xero-connected accounts receivable tool that tracks delivery and engagement
• Following up by phone and noting “I sent a statement on [date] — did you receive it?”

Common Mistakes to Avoid

• Sending statements with errors: Always reconcile the contact’s account before sending. Unallocated payments showing as outstanding will frustrate customers and create unnecessary disputes.
• Using the wrong statement type: Sending a full activity statement when a customer just needs to know their current balance can confuse rather than clarify.
• Waiting until end of month: If a customer is significantly overdue, do not wait for a monthly run. Send a statement immediately and follow up within 48 hours.
• Generic email text: A statement email that reads like an automated system message is less likely to prompt action than one with a human touch and a clear call to action.
• No payment options: A statement that tells a customer what they owe but not how to pay it is an incomplete communication. Always include payment methods.

Integrating Statements into Your Broader Collection Process

Statements are most effective as part of a structured accounts receivable process rather than a standalone action. A complete process for Australian SMEs typically looks like:

1. Invoice issued: Sent immediately on completion of goods or services
2. Pre-due reminder (3-5 days before due date): Automated invoice reminder via Xero
3. Day 1 overdue: Automated invoice reminder
4. Day 14 overdue: Personalised follow-up email or phone call
5. End of month (if still outstanding): Account statement with full balance
6. Day 30 overdue: Formal payment request or letter of demand
7. Day 45+: Escalation to external collection or legal action

Within this process, the monthly statement serves as both a soft escalation step and a reconciliation tool. It says, professionally and clearly: we know what you owe, we are tracking it, and we would like to resolve it.

Summary

Xero account statements are a simple but powerful tool for Australian businesses managing overdue accounts. Outstanding statements give debtors a clear, consolidated view of what they owe, removing ambiguity and reducing payment friction. Combined with automated invoice reminders, a monthly statement run, and a structured escalation process, most businesses can meaningfully reduce their debtor days within a quarter. The key is not just knowing how to generate a statement in Xero — it is building a consistent system that sends the right communication at the right time, every time, without relying on someone to remember.