.webp)
.webp)
Xero has rolled out invoicing and payment updates aimed at reducing delays in getting paid. The changes include a redesigned invoice template editor, a new "Pay" button on online statements, and expanded automation through its JAX assistant.
The updates form part of a broader effort to tackle late payments and uncertainty over when invoices will be settled. Xero says nearly half of payments made to small businesses are late, creating an ongoing drag on day-to-day operations.
Invoice workflow
A key change is a new invoice template editor that adds more formatting and branding controls within Xero. Users can upload a logo and have the software pull brand colours into the template. The editor also lets users adjust fonts, column names and payment details.
Xero framed the update as a response to customers who previously relied on third-party tools for invoice design and formatting. It also said it has prioritised streamlining invoice creation after feedback following last year's transition to a newer version of invoicing.
Beyond invoice appearance, Xero is emphasising flexibility in how invoices are paid. It said small businesses handle deposits, partial payments and mixed payment arrangements in different ways, and that existing tools have often forced workarounds.
Statement payments
Xero has added a "Pay" button to online statements, allowing customers to pay multiple invoices at once with a single payment. It said the change is designed to reduce friction that can lead customers to postpone payment.
One Xero customer, Joseph Young, described the impact in a case example included with the announcement.
"multiple monthly invoices early," which "boosted cash flow," Young said.
Xero argued that payment friction often sits on the customer side of the transaction rather than the supplier side. If paying is complicated, customers may put it off or forget, it said.
Automation focus
Xero is also expanding automation tools through JAX, which it describes as a "financial superagent". The assistant is positioned as a way to handle routine invoicing tasks and quickly retrieve information from within the platform.
JAX can create batches of invoices from a plain-language prompt, such as asking it to generate invoices for a client portfolio. It can also be queried for overdue accounts or payment histories. Xero said the goal is to speed up workflows while keeping users in control of final actions.
The assistant-led approach reflects a broader trend in business software as vendors add generative AI tools to automate administrative work and surface insights. Xero is tying that automation to cash collection, one of the most sensitive operational issues for smaller firms.
More payment options
Xero also pointed to existing payment features it says can shorten the time between invoice and settlement. These include SMS invoicing, which it said leads to payment on average the same day, as well as payment methods such as cards, secure bank transfers and Buy Now, Pay Later.
Xero also flagged further changes in development across invoicing and payment tools. One planned addition is support for taking deposits before starting work, allowing businesses to collect money earlier and cover upfront costs.
Another upcoming feature is scheduled invoicing, which would let invoices be sent at set times and give businesses more control over when invoices land in a customer's inbox.
Xero also outlined a feature that would let customers commit to a future payment date when they receive an invoice, which it said could reduce missed due dates and increase predictability for suppliers.
The product direction shows Xero focusing on points in the invoicing chain where delays occur, from invoice creation and presentation to how customers settle balances. Xero said it will continue building tools around the different ways businesses bill and collect payments.
"Cash flow uncertainty is a small business tax, and we're done with it," Xero said.