How does Xero assist with following up on overdue invoices?

Xero provides a streamlined way to manage overdue invoices by automatically sending reminder emails. This feature is highly effective as it saves time and ensures consistency in communication with clients. When an invoice is overdue, Xero allows users to set up automated reminders to be sent out on specific dates or intervals, which can greatly enhance cash flow and improve the likelihood of getting paid on time.

This automation not only reduces the administrative burden on users but also maintains a professional approach in managing accounts receivable. By using this feature, businesses can effectively remind their customers of outstanding payments without needing to take up significant amounts of time or effort in manual follow-ups.

The other options relate to aspects of invoice management but do not address the primary automated process Xero has in place for overdue invoices. Detailed billing reports may provide insights, lowering future invoice amounts would not directly resolve overdue payments, and manual calls, while effective, do not offer the same level of efficiency as the automated reminder system.