The verdict in three sentences
For a Dublin SME turning over EUR 6 to 10 million, automating payment reminders is one of the fastest-payback digital projects: every day of DSO removed frees roughly EUR 6,000 to 25,000 of cash. An off-the-shelf SaaS tool (EUR 150 to 600 a month) is enough while invoicing stays simple; once the ERP carries discounts, credit notes and disputes, a custom ERP-connected workflow (EUR 8,000 to 18,000) prevents wrong reminders that damage customer relationships. Aim for DSO cut from 68 to about 49 days within 3 to 4 months of a go-live delivered in 6 weeks.
Why manual chasing costs more than it looks
In most Irish SMEs, the credit controller chases when time allows: at month end, after the close, or when the bank starts asking questions. First reminders often go out 15 to 20 days after the due date, and customers who pay "when chased" settle into that habit. Irish late payment rules (European Communities Late Payment in Commercial Transactions Regulations) allow statutory interest at the ECB rate plus 8 points and fixed compensation of EUR 40 to EUR 100 per invoice, rarely claimed for lack of follow-up.
| Item (SME, EUR 8M revenue, 900 invoices/month) | Manual chasing | Automated reminders |
|---|---|---|
| Finance time spent chasing | 2.5 days/week | 0.5 day/week |
| Average delay of first reminder after due date | 18 days | Day +1 (Day -5 pre-reminder) |
| Observed DSO | 68 days | 49 days (2026 order of magnitude) |
| Invoices chased in error (already paid, disputed) | 4 to 6% | under 0.5% with ERP connection |
| Annual cost of time (loaded salary EUR 55,000) | about EUR 27,500 | about EUR 5,500 |
| Cash tied up by the DSO gap | baseline | about EUR 120,000 released |
The cash maths is simple: annual credit revenue / 365 x DSO days saved. With EUR 2.3M invoiced on credit in the scope, 19 fewer days is about EUR 120,000. At overdraft or invoice finance rates of 5 to 7%, that is EUR 6,000 to 8,400 of finance costs avoided each year, on top of time saved.
Off-the-shelf tool or custom workflow: 2026 comparison
SaaS credit control tools work well for standard invoices. Their limits show when data lives in a business ERP (Sage 200, Business Central, NetSuite, Xero with add-ons, Odoo) with its own rules: key accounts chased by the account manager, disputed invoices to hold, negotiated payment plans.
| Criterion | Off-the-shelf SaaS | Custom ERP-connected workflow |
|---|---|---|
| Cost | EUR 150 to 600/month (EUR 1,800 to 7,200/year) | EUR 8,000 to 18,000 one-off, then EUR 100 to 300/month hosting |
| Payment sync | Import or standard connector, often daily | Real time or hourly, bank reconciliation included |
| Disputes and credit notes | Manual, ticked in the tool | Automatic hold based on ERP status |
| Channels | Email, sometimes SMS | Email, SMS, registered e-letter, scheduled call |
| Rules per customer segment | Limited templates | Rules by customer, amount, age, account manager |
| Set-up time | 1 to 3 weeks | 6 weeks |
| Ownership of data and workflows | With the vendor | With you, documented |
Beyond 3 years, custom often costs about the same as a top-tier subscription, with ERP-level accuracy on top. For an SME issuing fewer than 200 invoices a month with few disputes, an off-the-shelf tool remains the right choice.
The standard 5-step workflow
An effective workflow combines prevention and gradual escalation, without aggression:
| Step | Timing | Channel | Content |
|---|---|---|---|
| 1. Pre-reminder | Day -5 before due date | Invoice copy, payment link | |
| 2. Friendly reminder | Day +3 | Email + SMS | Amount due, bank details |
| 3. Firm reminder | Day +15 | Email + scheduled call for the account manager | Statutory interest and fixed compensation |
| 4. Formal notice | Day +30 | Registered e-letter (about EUR 4 to 6 each) | Interest calculated automatically |
| 5. Hand-off to collections | Day +45 | Task in the ERP | File ready for legal recovery |
Each step reads the invoice status in the ERP just before sending: an invoice paid yesterday or flagged as disputed is never chased.
Mini case study
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Aoife, financial controller of an electrical wholesale SME in Ballymount, Dublin (EUR 8.2M revenue, 140 active accounts), chased by hand with a 68-day DSO. The project: Sage 200 connector feeding a workflow engine, 5 steps, receivables dashboard, for EUR 13,500 and EUR 140 a month hosting, delivered in 6 weeks.
After 4 months, DSO is at 50 days. With average receivables down from EUR 1.53M to EUR 1.12M, released cash reaches about EUR 410,000 gross across the ledger, of which EUR 120,000 is directly attributable to automatically chased invoices. Aoife recovers 2 days a week, about EUR 22,000 of valued time per year. The project pays back in under 8 months on time savings alone.
FAQ
How much does payment reminder automation cost an SME in 2026?
A SaaS tool costs EUR 150 to 600 a month depending on invoice volume. A custom ERP-connected workflow runs EUR 8,000 to 18,000, plus EUR 100 to 300 a month for hosting and maintenance.
Can DSO really drop from 68 to 49 days?
It is a common 2026 order of magnitude for an SME that chased late and irregularly. The gain comes mainly from the Day -5 pre-reminder and consistency: 60 to 70% of late payments are oversights, not financial difficulty.
Are SMS reminders allowed in B2B?
Yes, for collecting an existing debt from a business contact, subject to GDPR (transparency, data minimisation). Cost is about EUR 0.05 to 0.09 per SMS in Ireland.
Which ERPs can be connected?
Sage 200, Business Central, NetSuite, Xero, Odoo and most ERPs with an API or database access. For a legacy ERP without an API, an hourly scheduled export is enough in 90% of cases.
Should customers be told about the change?
It is recommended: a notice email one month ahead avoids negative reactions. Key accounts can be excluded from automation and handled by their account manager.
Let's scope your project. Send us your ERP, monthly invoice volume and current DSO, and we will price a reminder workflow between EUR 8,000 and 18,000, delivered in 6 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
