How to Automate Invoice Reminders in Business Central

Late payments are one of the biggest challenges facing UK businesses. According to FSB data, more than 50,000 UK businesses close each year due to late payments – a problem that directly impacts cash flow, growth, and even business survival. If you’re running Microsoft Dynamics 365 Business Central, the good news is that you can automate invoice reminders and reduce the time spent chasing payments while improving customer relationships.

In this blog, we’ll explain how to automate invoice reminders in Business Central, tailored for UK businesses, and share best practices so you can set it up correctly from day one.

Why Automate Invoice Reminders?

Manually chasing invoices is time-consuming and prone to errors. Automating this process in Business Central helps you:

💡 Improve cash flow – get paid faster and with less effort.

⏳ Save time – free up your finance team to focus on higher-value work.

🤝 Protect customer relationships – reminders are professional, consistent, and reduce awkward conversations.

📊 Maintain visibility – track outstanding invoices and reminder history directly in your system.

Setting Up Automated Reminders in Business Central (UK-Specific)

While every region has variations in accounting standards and VAT rules, UK businesses have a fairly straightforward process to follow in Business Central. Here’s a step-by-step overview:

1. Define Reminder Terms

Go to Finance > Receivables > Reminder Terms.

• Set up different reminder levels (e.g., 7 days overdue, 14 days, 30 days).

• Define grace periods (for example, allowing a few extra days for payment before the first reminder).

• Configure additional fees or interest charges – these must comply with UK legislation (Late Payment of Commercial Debts Act).

2. Create Reminder Levels

For each reminder level, you can specify:

• The text of the message (customise to fit your tone).

• Whether to apply a service charge or interest.

• The sequence in which reminders are triggered.

Example:

• Level 1: Friendly reminder (7 days overdue).

• Level 2: Formal reminder (14 days overdue).

• Level 3: Final notice before escalation (30+ days overdue).

3. Customise Reminder Text

Under Report Layouts, you can customise reminder letters so they reflect your brand. For UK businesses, keep the tone professional but polite – payment culture is sensitive, and a consistent message helps maintain good client relationships.

4. Run and Send Reminders

Once set up, Business Central can automatically:

• Generate reminders based on overdue invoices.

• Send them via email (most common in the UK) or print letters if required.

• Log reminder history against the customer record for audit and reference.

Best Practices for UK Businesses

✅ Align with credit control policies – ensure your reminder schedule matches your internal credit terms.

✅ Stay compliant with UK law – if you plan to charge late fees, they must be reasonable and legally permitted.

✅ Segment customers – not every client should receive the same reminder cadence; VIP customers may need a softer approach.

✅ Review reports regularly – Business Central gives visibility into outstanding receivables; use these insights to adjust your reminder strategy.

The Benefits of Automating Invoice Reminders in Business Central

When properly configured, automated reminders do more than speed up collections – they create a predictable cash flow that helps businesses scale confidently. UK SMEs, in particular, benefit from reducing admin costs and ensuring compliance with VAT reporting requirements.

💬 "By automating invoice reminders in Business Central, businesses can spend less time chasing payments and more time growing."

Final Thoughts

Late payments are a reality in today’s economy, but they don’t have to control your business. With Business Central, UK organisations can easily automate invoice reminders, stay compliant with financial regulations, and reduce the stress of credit control.

If you’re ready to get started with automating invoice reminders in Business Central but aren’t sure how to tailor it to your setup, we can help.

👉 Book a free consultation with our Business Central experts and take the first step towards better cash flow management.