Invoice disputes are a major reason for delays in AR payments. While it may be difficult to eliminate invoice disputes altogether, you can try your best to prevent such disputes and in the event of their occurrence, handle it calmly and resolve the issue. Here are some precautions you can take to prevent and handle invoice disputes with clients.
- Generate Accurate Invoices– Missing and incorrect information on invoices is a major reason for invoice disputes and payment delays according to account receivable solutions companies. Generating accurate invoices with correct prices, items, units, billing name and address are of great importance to maintain good business relationships. Generating accurate invoices also helps build and maintain the reputation of your business.
- Backup Invoice Data– When a client raises an invoice dispute, it helps if precise data is presented to the client. Account receivable solutions businesses have found that clients are more likely to make the payment if you are able to provide accurate information that supports your invoice data. Always backup copies of quotes, contracts and all communication regarding products and services. Even if your client doesn’t agree to make the payment, these documents are needed to clear things in court.
- Clear Communication on Resolution– Account receivable solutions demand that you provide the client who raised the dispute with a plan for payment resolution. State professionally and clearly a plan for resolving the issue; this document will also serve as documentation in the event that the matter reaches court.
- Stay Calm– Every customer is important and should be treated with respect. Handle the irate customers with calm and listen to what they have to say, no matter how big or small the account they hold with your company. Doing so will not only help you to retain customers, it will also help to build your business’ reputation. Train your employees to handle situations calmly as well.
Invoice disputes are a part of doing business. There is no reason to take the matter personally and to erupt into negative interactions. Being prepared and keeping calm can go a long way to ensure you resolve invoice disputes.