Invoice disputes are very frustrating and time consuming. If we spent less time trying to resolve invoice disputes, we’d have more time to call late paying customers and receive payment quickly. Unfortunately, it simply doesn’t work that way and invoice disputes will continue to pop up. What many businesses don’t realize is that most invoice disputes occur because of our mistakes, rather than simply a finicky customer. In order to resolve invoice disputes quickly, try following some of the 5 steps below.
- Include Supporting Documents
One mistake that is often made on the business’ part that could be avoided altogether is forgetting to attach supporting documents, such as a purchase order. Some accounts payable departments are required to have a purchase order attached, and without one, are unable to pay an invoice. Just by simply attaching ensuring all the proper documents are attached, you can avoid a large percentage of invoice disputes.
- Make Follow Up Calls
Once you send an invoice to a customer, it is good practice to make a call and ensure they received the invoice. While on the call, you can ask the customer if everything on the invoice is correct. This way, you can catch mistakes and resolve invoice disputes immediately.
- Have Set Rules
If you have a few accounts receivable team members and they are all dealing with invoice disputes, you may have a few inconsistencies. Maybe one clerk allows a customer leeway for forgetting to pay the invoice, while another is strict and treats all late payers the same. To make sure that invoice disputes are getting resolved quickly, you need to have set rules for your team to follow, like when a dispute should be escalated or what you should say if a common excuse is given.
- Use Invoicing Software
Invoicing software offers automated workflows that let accounts receivable employees get through their work more quickly. It shows which invoices have gone without payment for the longest and which invoices are in dispute. This allows you to find a dispute faster, allowing for quick resolution, which is key since the longer an invoice sits in dispute the less money you will collect.
- Offer Live Chat
The easier it is for a customer to get a hold of you and alert you to an invoice dispute, the more quickly you can resolve it. Using live chat from within your invoicing software, customers can simply send a message that you will receive immediately. It is quicker than email and customers will have access to it through the same portal they view their invoices in.
One of the easiest ways to resolve invoice disputes quickly is to ensure that your accounts receivable department is organized. Since most invoice disputes occur as a result of a mistake on the business’ part, you can avoid more of them altogether by simply making sure they are all correct. Once you have less disputes to deal with, you can focus your efforts on calling and receiving payment from your latest customers.