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invoice disputes

6 friendly (yet effective) methods to handle invoice and payment disputes

It’s never easy to discuss money, especially if you run a small business. But unfortunately, there is no getting around it! You’ll encounter a client or two who contest an invoice at some point, and you’ll need to handle the situation so as not to jeopardize your relationship.
You must create efficient credit management systems if you wish to avoid payment disputes (and know how to handle them if they do arise). Here are 6 simple and efficient strategies to handle invoice and payment disputes.

Be organised.

Make sure to keep solid records and be organized to avoid wasting more time than necessary trying to resolve payment disputes. Your agreed-upon deliverables and any data you require on chargeable charges should be easily accessible.

Always agree on price up front.

Setting expectations with your client is necessary before you finish a project or issue an invoice. Inform them of the service you will offer, when it will be available, and the fee.

Prior to beginning the service, you must agree on the billable cost in order to minimize payment conflicts. It would be best if you could conclude the conversation with a quote and get their approval before moving forward. In the future, if there are any problems, you can refer back to this.

State your invoicing terms as clear as possible.

Make a payment policy and make it known to your customers in order to encourage prompt payment from them and to maintain a steady cash flow for your company. Your customers must understand how to pay, what your terms are, and when they must do so. They must also be aware of the repercussions of missing deadlines.

Be friendly (but stick to your guns)

The worst thing you can do in a conflict is to give in to their demands right away or to react strongly. Make sure you have all the proof you require, including the numbers and paperwork, to support your claim in order to prevent becoming irate or disappointed with the customer. After that, you can address them again with a detailed justification, and they’ll be more inclined to concur.

In the event that you were at fault, admit it right away and issue a corrected invoice. We want to avoid tearing this community apart!

Work towards a resolution

It doesn’t really matter if it was your fault, the client’s fault, or just a miscommunication. At the end of the day, you both want to reach a decision that you are both happy with. When resolving an overdue invoice or payment dispute, keep this in mind and send any correspondence via email so you have a record of what was said.

Seek the support of an accountant

An accountant can assist you in developing a steady cash flow if you’re having serious problems with unpaid invoices and managing your accounts receivable. They can ensure that you receive the money you are owed on time AND without jeopardizing any customer relationships by setting up the relevant software and pursuing payments for you.

If you have any questions, please feel free to contact us on info@progressaccountants.com. Alternatively, you can call us on 01865 921 150.

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