What Are Invoice Disputes Really Costing You?

Cost of AR Invoice DisputesWhile good accounts receivable looks great on your general ledger, it doesn’t do much when it’s held up by billing disputes. Late payments and disputes can significantly affect your access to working capital, and it only worsens with time. The longer it takes for those invoices to get paid, the more unlikely it is that they will ever be paid. For example, if you allow an invoice to age 90 days, you’ll be fortunate to gather only 74% of the funds to be paid, at 60 days you’re probably only going to collect just 30%, and you can just forget about getting paid if it’s more than 12 months late, because you’re only going to collect on (10%) of those receipts.
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