Dealing With Invoice Disputes
Disputed invoices are among the many money-related issues businesses face. If you are a business owner and still have not faced disputed invoices, you can expect to face such disputes at some point. When faced with invoice disputes, it is crucial that you know how to handle the situation. An invoice dispute can ruin your business and client relationship if not handled properly. If not handled correctly, an invoice dispute can result in the loss of a lot of money.What is an Invoice Dispute?
An invoice dispute arises when a customer disagrees with an invoice. Invoice disputes can arise for various reasons, and some customers dispute part of an invoice, whereas others dispute the entire invoice. Additionally, invoice disputes can happen to any business, small or large. Even a successful business can face invoice disputes. The best strategy is to avoid invoice disputes. But if you find yourself facing such disputes, it is crucial that you act fast and effectively to resolve the issue.Common Reasons for Invoice Disputes and How to Handle Them
Below are some of the reasons for invoice disputes and how to deal with disputes when they arise;Dissatisfaction With Quality
A customer may feel dissatisfied with the quality of a product or service. In such a case, it is crucial that you take time to listen to the customer’s concerns. Find out why the customer is dissatisfied. If the customer has a point, offer to make the necessary changes. If a customer does not have a genuine reason for feeling dissatisfied, you should check your contract (if you have one). In the contract, there should be a provision on how to resolve disputes. Including clauses on how disputes should be resolved in your payment terms may also be a good idea.Pricing Disagreements
Going over pricing before invoicing a customer can help prevent disputes. If pricing disagreements arise, try to reach a compromise that works for you and the customer.Late Delivery
An invoice dispute may arise if you are late delivering goods to a customer. If you know you will be late to deliver goods to a customer, communicate with the customer. If a customer disputes an invoice due to late delivery and you are at fault, you can offer them a discount to improve their experience.
If a third party, such as a delivery company, caused the delay, you may want to make your customer aware of the fact that you did everything possible to ensure they got their goods on time.Payment Constraints
Sometimes, customers dispute invoices on the grounds that they cannot make payment. In such a case, you can reach an agreement with the customer on a payment plan. However, you may want to impose a late payment fee in such a case since some customers are deceptive.
To avoid dishonesty, it may be a good idea to ask customers to pay a deposit before you provide goods or services.Invoice Processing Errors
When a client raises this issue, go through the invoice with them to identify the mistake or check if everything is correct. If there is an issue with the invoice, apologize to the customer and correct the error.Sometimes, you might find that a customer simply misunderstood something. Legal Help Is Available
Our qualified business attorneys at SAC Attorneys LLP can help you if you are faced with an invoice dispute. To contact us, call (408) 436-0789 or fill out our online contact form.