# Invoice dunning software that runs on your schedule

Paidnice chases overdue B2B invoices in **Xero and QuickBooks Online**, step by step, until each one is paid.

Source: https://www.paidnice.com/dunning-software

## What is dunning software?

**Dunning software automates the steps a business takes to collect overdue invoices.** For B2B invoices, that means five jobs:

- **Reminders:** a schedule of emails and texts, each with its own day and tone.
- **Dunning fees:** a late fee or interest at the step you choose.
- **Statements:** every open invoice in one document, with a link to pay.
- **Dunning letters and escalation:** a final notice or letter before action, printed and posted on request on Pro and above, or a call or Stop Credit assigned to a person.
- **Stop rules:** every later step stops when the invoice is paid, and can pause while a payment is promised or a query is open.

Subscription businesses use "dunning" for retrying a failed card payment. Paidnice is B2B dunning software for invoices on payment terms, and it does not retry card payments.

## B2B invoice dunning vs subscription dunning

Both are called dunning. They solve different problems with different tools.

| Type | Best for | What it does | Where it stops |
| --- | --- | --- | --- |
| B2B invoice dunning (Paidnice) | B2B businesses that invoice on payment terms in Xero or QuickBooks Online | Reminders on a schedule, late fees and interest, statements, dunning letters and escalation to a person | Needs Xero or QuickBooks Online, or another cloud ledger on the Custom plan. Does not retry card payments |
| Subscription dunning | Subscription businesses that bill a card every month | Retries failed card payments and asks customers to update their card | Does not chase invoices on payment terms |
| Built-in reminders in Xero or QuickBooks | A few invoices a month | Basic invoice reminders | No escalation, no posted letters and no fees in Xero. QuickBooks Online in the US can add a fee to the invoice only |

## Run the full dunning schedule, step by step

An example dunning schedule, also called a dunning campaign, with five levels. You set the day, channel and template for each level, for each customer group.

| Day | Step | Channel | Tone |
| --- | --- | --- | --- |
| 3 days before due | Courtesy reminder | Email | Friendly |
| Due date | Due date reminder | Email and SMS | Clear |
| 7 days overdue | Firm reminder | Email and SMS | Firm |
| 14 days overdue | Dunning fee or interest | Added to the invoice or raised as a new invoice in Xero or QuickBooks Online, with an optional email to the customer | Firm |
| 30 days overdue | Final notice and escalation | Letter or phone call, assigned to a person | Formal |
| When paid | Every later step stops | Synced from Xero or QuickBooks Online |  |

Each email step uses your template or is written by AI from your prompt. Steps pause while a payment is promised or a query is open, and stop for any customer or invoice you freeze.

## Dunning letters, printed and posted

On Pro and above, Paidnice prints and posts overdue letters, final notices and letters before action for US$2.00 a letter, print and postage included. We turn it on when you ask.

| Letter | When | Price |
| --- | --- | --- |
| Overdue letter | Any step you choose | US$2.00 a letter, print and postage included |
| Final notice | The last step of your schedule | US$2.00 a letter, print and postage included |
| Letter before action | After the final notice | US$2.00 a letter, or solicitor-signed, priced case by case by country |

A solicitor-signed [letter before action](https://www.paidnice.com/blog/letter-before-action-template) is priced case by case by country. Letters are posted in the US, Canada, the UK, the EU, Australia, New Zealand, Singapore, Hong Kong and South Africa.

## Paidnice is dunning software for small business

Most small businesses on Xero or QuickBooks Online do not need an enterprise collections platform. They need every overdue invoice chased on a schedule, without someone sending each reminder.

- **Built for invoices on terms:** Paidnice chases invoices from Xero or QuickBooks Online, not failed card payments
- **More than built-in reminders:** a schedule with late fees, statements, dunning letters and escalation
- **Stops on its own:** every later step stops when the invoice is paid

## How Paidnice automates dunning

### Late fees and interest

Once it is late. Paidnice adds the fee or interest your terms allow, posts it to Xero or QuickBooks and can tell the customer. Each fee can wait for your approval. [More on late fees](https://www.paidnice.com/late-fees)

### AI that reads replies and queries

When they reply. Paidnice reads each reply and logs a promise or a query, so the next dunning step can wait. For a query, AI looks into the reason and proposes the next step for a person to approve or change. [More on reply handling](https://www.paidnice.com/ai-accounts-receivable)

### Customer statements

Every month. Customers with a balance get a statement on the day you choose, with a Pay now link inside the PDF. [More on statements](https://www.paidnice.com/automated-customer-statements)

### Escalations

If it stalls. When reminders stop working, the account moves to a person on your team with its full history. They choose the next step: a call, a letter or a credit stop. [More on escalations](https://www.paidnice.com/escalations)

### Payment portal and plans

When they pay. Customers see every open invoice, with no login, and pay by card or bank debit or move to a payment plan. [More on the payment portal](https://www.paidnice.com/customer-payment-portal)

## Dunning in Xero and QuickBooks Online

Xero dunning and QuickBooks dunning start with basic reminders. Paidnice adds the full schedule and posts every fee to your Xero organisation or QuickBooks Online company.

| Compare | Xero | QuickBooks Online |
| --- | --- | --- |
| Built-in dunning | Invoice reminders set in Xero, with no late fees | Invoice reminders, plus a late fee on the invoice in the US |
| With Paidnice | A dunning schedule for each customer group, fees and interest posted to your Xero organisation, statements, letters and escalation | A dunning schedule for each customer group, fees and interest posted to QuickBooks Online, statements, letters and escalation |
| Read more | [Credit control for Xero](https://www.paidnice.com/xero/credit-control) | [Credit control for QuickBooks](https://www.paidnice.com/quickbooks/credit-control) |

## What to look for in dunning software

- **Works with your ledger:** Reads invoices from Xero or QuickBooks Online and posts each fee back.
- **Steps that stop themselves:** Later steps stop when paid and pause while promised or queried.
- **A schedule per group:** Different days, channels and templates for your best and slowest payers.
- **Dunning fees you control:** A flat fee, a percentage or interest at the step you choose.
- **Letters and escalation:** The last step goes to a person: a call, a letter or Stop Credit.
- **A link to pay:** Each reminder and statement links to a portal to pay or start a plan.

## Price

Paidnice starts from US$69 a month, priced by invoice volume. Pro, with the full core feature set and unlimited users, starts from US$99 a month. Your first 20 actions are free. See [pricing](https://www.paidnice.com/pricing).

## Dunning software: common questions

### What is dunning software?

Dunning software automates the steps a business takes to collect overdue invoices: reminders on a schedule, dunning fees and interest, statements, dunning letters and escalation to a person.

### Is dunning only for subscriptions?

No. Subscription businesses use dunning to retry failed card payments. B2B dunning chases invoices on payment terms, and that is the kind Paidnice does for Xero and QuickBooks Online.

### What is automated dunning?

Automated dunning is dunning software sending each step on its day, with no one pressing send: reminders, fees, statements and the handover to a person. In Paidnice, an Active policy runs every step on schedule from your Xero or QuickBooks Online invoices.

### Does Paidnice retry failed card payments?

No. Paidnice does not retry failed subscription charges. For invoices, every reminder has a link to pay, and the portal takes card or bank debit, or a payment plan.

### Can AI write dunning emails?

Yes. Paidnice can write each reminder with AI from your prompt when it sends, using the invoice, the customer's other open invoices, recent payments and any fee coming. Run the policy as Active and AI-written reminders send on schedule, or as Draft and each one waits for your approval. You can also pre-approve the types of reply and action you trust. See [AI reply handling](https://www.paidnice.com/ai-accounts-receivable).

### What are dunning fees?

Dunning fees are charges added to an overdue invoice to cover the cost of collection and to encourage on-time payment. They can be flat late fees, percentage fees or interest. Paidnice adds each one to the overdue invoice, or raises it as a new invoice, in Xero or QuickBooks Online on the day it is due.

### Can Paidnice send dunning letters?

Yes. Any escalation step can use a template legal letter, from an overdue letter to a letter before action. On Pro and above, Paidnice can print and post it for you. See [collection letter templates](https://www.paidnice.com/blog/collection-letter-templates).

### Does dunning stop when the invoice is paid?

Yes. Paidnice stays in sync with Xero and QuickBooks Online, so the next step does not send once the invoice is paid. Steps can also pause when a payment date is promised or a query is open.

### How much does dunning software cost?

Paidnice Pro has the full core feature set and unlimited users, from US$99 a month for 300 invoices to US$799 a month for 4,000. Plans start from US$69 a month, priced by invoice volume. Your first 20 actions are free. See [pricing](https://www.paidnice.com/pricing).

### Can I control which customers get contacted?

Yes. Exclude any customer or a whole group, freeze a single invoice, add grace periods and set different rules for each group, so the customers who pay on time are left alone.

### Does it change anything in my Xero or QuickBooks?

Nothing changes unless a rule you set makes it happen. Paidnice connects through the official Xero and QuickBooks integrations.

## Related

- [The dunning process](https://www.paidnice.com/blog/dunning-process): Every step, explained
- [Dunning](https://www.paidnice.com/dictionary/dunning): The term, defined
- [Collection letter templates](https://www.paidnice.com/blog/collection-letter-templates): Letters for each stage
- [Late fees and interest](https://www.paidnice.com/late-fees): Set the fee for each step
- [Credit control software](https://www.paidnice.com/credit-control-software): The wider process
- [Escalations](https://www.paidnice.com/escalations): Calls, letters and Stop Credit