Invoice disputes are a major cause of delays in payment. They can also be very time consuming and difficult to resolve. The best approach to dealing with invoice disputes is to avoid them altogether. Dealing with invoice disputes after they have occurred is like treating a symptom rather than the cause of the problem. Here are some suggestions to avoid invoice disputes altogether.
IDENTIFY CAUSES OF INVOICE DISPUTES
It is hard to avoid invoice disputes if you don’t know what is causing them. Accounts receivable software available from Lockstep Collect has a coding system feature, which allows you to tag each invoice with a code representing the cause of the dispute that is delaying payment. You can filter by reason code to see which cause comes up most often. Armed with this information, you can take steps to fix the cause of the problem.
With invoice coding you can be proactive rather than reactive, avoiding invoice disputes before they happen.
Simple invoice errors are a common cause of delays in invoice payments. Invoice errors can largely be avoided by using the invoice template feature in automated accounts receivable software available from Lockstep Collect.
Why recreate an invoice over and over increasing the chance for simple errors, when you can set up an invoice template that you just populate with information for the current shipment or service rendered? Invoice templates can be designed to highlight the key information your customer needs to process your invoice for payment on a timely basis.
Invoices which are error free, and easy to read and understand will help to avoid time consuming invoice disputes altogether.
ROUTING GUIDES AND SHIPPING INSTRUCTIONS
Failure to follow customer routing guides and shipping instructions can be a major cause of delays in invoice payments, chargebacks and unauthorized invoice deductions. The best way to avoid these invoice disputes altogether is to make sure that everyone in your company, who touches any aspect of the customer transaction cycle, has a copy of your customers’ routing guides and shipping instructions, and understands what they must do to comply with your customers’ requirements.
In some cases, such as suppliers to retailers, where chargebacks and unauthorized deductions are a major problem, companies have hired chargeback coordinators or deductions managers to ensure compliance with customer requirements in an effort to avoid invoice disputes altogether.
Automated accounts receivable software available from Lockstep Collect has several additional features which are very helpful in resolving invoice disputes, and identifying them so they can be avoided altogether in the future – online notes, work flow and automated reminders. These features help facilitate the communications necessary to achieve this end.
Companies that use automated accounts receivable software have the tools needed to identify the causes of invoice disputes. They are better equipped to avoid invoice disputes altogether, and the negative impacts they have on operating efficiency and cash flow.
Automated accounts receivable, credit and collection software is available from Lockstep Collect, the leader in cloud-based software solutions made specifically for businesses selling on credit.
If you would like to learn how you can automate your accounts receivable, credit and collection system, please contact Lockstep Collect at www.lockstep.io.