Disputing over Invoice is always an uncomfortable situation. Your customer may create an issue with the amount, payment terms, deliverables or some other term and condition. Irrespective of the concern, there is something that has led the customer to raise the issue and you need to address it sooner or later. In general, disputed invoices are generated from a disagreement or misunderstanding. For e.g. You charged the customer for 8 hours of service, they only wanted 6 or you charged 1000 bucks for a product, but the customer assumed lesser price. Let’s know more about the reasons for invoice disputes and the effective ways to solve them: The disagreement may be because of the following causes:
- Date error
- Quantity
- Pricing
- Data and Time
- Quality dispute
- Price dispute
- Items description
- Administrative dispute
- Duplicate invoice
- Missing goods
How to deal with disputes?
There are various ways of dealing with disputed invoices and remaining calm during the whole process is advisable. Here are a few proven ways of going through the process:
Hear your customers out! Ask questions
To run your business successfully, you need customers. Therefore, you cannot lose them, even the tough ones. The first thing you should do is to listen to your customer and then ask the qualifying questions. While a solution can be figured out while discussing the problem but in case, it is hard to achieve any solution – then you may have no other choice but to try resolving the issue.
Let the customers know when they are wrong
There are high chances that customers may have wrongly interpreted the invoice contents or the instructions. If they can admit the errors, then problem can be rectified. And in case, they do not, then the resolution process will be stretched.
Find a solution that is mutually beneficial
The key is to handle things in a professional manner and not cautiously. This will assist in beginning the outcome process politely and help in protecting your relationship with your customer. Though, this doesn’t imply that you must accept all demands from your customer. Figure out a way to solve the issue by distinguishing what will benefit both parties.
When all things go wrong, escalate the issue legally
Generally, businesses shy away from taking matters legally. However, this option is always available. Escalating the matter does not always mean that you are failing out the customer entirely, but you are taking the essential steps to receive your payment. In case you proceed towards taking it all legally, ensure that you have all the necessary documents to show the customer fault and the steps you have taken to solve the dispute.
Smart tips to avoid invoice disputes in the future
A disputed invoice payment can cause problems to your business. It is better to avoid these issues. Here are few tips:
Verify before sending
Proofread the invoice content before sending it. Double check – If it is marked to the right person and whether the details are clearly stated – date, terms, and mode of payment etc.
Once you sent the invoice, avoid changing the price
Increasing the price in the invoice from the original quotation will set up a dispute. If it is still needed, be clear in stating your reason and communicate with the other party before resending.
Need to step rules
Give a time limit for the dispute resolution process as it will help to differentiate between genuine disputes and wrong ones.
Keep the right procedures in place
By regularly communicating with the customer throughout the credit period is crucial. Provide sufficient chances to ask issues about the invoice. Hope you found these tips insightful. Stay tuned for more tips!
