How to Invoice Using Xero: A Step-by-Step Guide
If you're running a business, getting paid is important. And the faster and more professionally you can send out your invoices, the better your cash flow will be. That’s where Xero comes in, it’s a powerful, cloud-based accounting system that makes invoicing simple and efficient.In this guide, we’ll walk you through how to create and send an invoice using Xero, along with a few tips to make the most of the features available.
Why Use Xero for Invoicing?
Xero isn’t just for accountants — it’s designed for small business owners too. Its invoicing tool allows you to:
Create professional, branded invoices
Send them directly from your phone or laptop
Track when invoices are opened
Set up automatic reminders
Accept online payments to speed things up
Let’s dive into the process.
Step 1: Set Up Your Branding
Before sending your first invoice, make sure your branding is set up.
Go to:
Business > Invoices > Invoice settings
Here, you can:
Upload your logo
Choose fonts and layout
Set payment terms (e.g., due in 14 days)
Add default messages or payment instructions
This gives your invoices a professional look and keeps them consistent with your brand.
Step 2: Create a New Invoice
To create an invoice:
Go to Business > Invoices
Click New Invoice
Fill in the details:
To: Choose an existing contact or create a new one
Date & Due Date: Set the invoice and payment dates
Reference: Optional, but useful if the client needs a PO number
Description: Add what you’re billing for (product, service, hours worked, etc.)
Amount: Enter quantity, price, and any VAT
You can also use saved items if you invoice for the same services regularly.
Step 3: Review & Send
Once you're happy with the invoice:
Click Preview to check how it looks
Then hit Email (or save as draft if you want to send later)
Xero lets you customise the email message too. You can keep it short and sweet, or add any key notes the client might need.
Step 4: Add Online Payment Options (Optional, but Recommended)
If you want to get paid faster, set up online payments like Stripe, GoCardless or PayPal.
Go to:
Settings > Payment services
Follow the instructions to connect your payment provider.
Once connected, your invoices will include a "Pay now" button — making it easier for clients to pay you on time.
Step 5: Track and Chase Payments
After sending an invoice, you can see:
If it’s been viewed
When it’s due
Whether it’s been paid
Xero can also send automatic reminders on your behalf (e.g., 3 days before due, 1 day after due, etc.), so you don’t have to chase manually.
Bonus Tips:
Recurring Invoices: For regular clients, use Xero’s repeating invoice feature
Attach Files: Add timesheets, receipts or notes as attachments
Mobile App: Create and send invoices on the go via Xero’s mobile app
Invoice in Multiple Currencies: If you deal internationally, Xero supports this too (on certain plans)
Final Thoughts
Invoicing with Xero is quick, easy, and helps you keep your finger on the pulse of your cash flow. Whether you’re just starting out or managing a growing business, getting your invoicing process right is one of the simplest ways to stay on top of your finances.
Need help getting started or want a walkthrough of how this works in your specific setup? Feel free to book a call with me — I’ll help you get up and running in no time.