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.
Dealing with invoice disputes could be one of the most frustrating aspects of accounts receivable. Between listening to customer excuses and finding out your invoice wasn’t paid on time because it was stuck in a spam folder, sometimes the invoice disputes feel never ending. Even more frustrating, when invoice disputes occur, you are less likely to recover all of the money you are owed So, what if you could be one step ahead of the invoice disputes? Instead of dragging them out forever, cut them off quickly. Follow these four steps to stay ahead of invoice disputes.
- Invoice Early
The earlier you invoice, the earlier a customer will identify if there is an issue with the invoice. The faster you can deal with invoice dispute the fast you will get paid.
- Confirm Receipt
There are many reasons why a customer may not have received the invoice. It could have gone to the wrong contact, is stuck in their spam folder or the address it was sent to was wrong. By calling them to confirm it was received, the customer also has a chance to bring up any issues with the invoice while you are on the phone.
- Dispute Alerts
Using your automated accounts receivable software, you should set up alerts for invoice disputes. Whenever a customer disputes an alert, you will receive an email. Getting these notifications as early as possible helps to resolve them as early as possible.
- Live Chat
By using a live chat feature, customers can send a live message to your support team as soon as they receive this invoice. If they have an invoice dispute, they can immediately bring it up and your team can immediately address it. This is the best and quickest way to get to the bottom of an invoice dispute to get you paid faster.
The key to dealing with invoice disputes is dealing with them early. The longer you wait, the more money you will lose. As frustrating as they can be, tackle them head on. Remember to also stay calm when talking to the customers, no matter what crazy excuse they may give you.
No matter how long you are in the collections business, customer payment excuses never seem to get old. There is always a new and ridiculous payment excuse that will shock you. Customers will never quit trying to get out of paying, so these hilarious (and frustrating) excuses will keep coming.
Dealing with invoice disputes are not fun for two reasons. First, getting into a dispute with a customer can be frustrating. You may not agree on how much work was done or time spent, causing a small riff in your relationship. Second, you’re staring down the fact that you may not get paid fully for all the work you just did.
Getting paid in the transportation industry is no easy task. Freight invoices are disputed left and right, whether the client is disputing rates, fuel surcharges or accessorial fees. It seems like there is tons of information for your client on how to dispute a freight invoice, but not enough for the transportation industry on how to get paid on those invoices faster.
While 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.
Chardon, Ohio, December 9, 2014- Today e2b teknologies, publishers of Anytime Collect accounts receivable management software, announced the availability of a new webinar titled, “Managing orders, shipments, and disputes with StarShip and Anytime Collect.” The webinar, a joint production by e2b teknologies and v-technologies, provides best practices to help companies improve internal processes to drastically reduce shipping related invoice disputes and get paid faster.
The key to resolving invoice disputes is to identify the dispute very early in the collections process. Too often businesses send out invoices, and they wait until the invoice is far past due before they start calling to find out why they haven’t been paid. Here are a few interesting and helpful statistics about invoice disputes, what causes them, and what you can do to fix these problems if they exist in your organization. Continue reading
While A/R looks good on your balance sheet, it doesn’t do much when it’s held up by invoice disputes. Late payments and disputes can have a significant impact on your cash flow, and it only gets worse with time. The longer those invoices go unpaid, the less likely it is that they will ever be paid (at least in full). For instance, if you allow an invoice to age 90 days, you’ll be lucky to collect just 74% of the balance due, at 60 days you’re looking at collecting only 30% of that balance, and you might as well forget about your invoices over 12 months late, because you’re only going to collect a fraction (10%) of those invoices. The consequences can be truly damaging, consider this: Continue reading