Disputes are frequently the reason for delayed payments. They are the hidden problem that you don’t know about until AP pays late and takes an unauthorized deduction or chargeback, or won’t pay until a dispute is settled. When you learn of a dispute, the invoice could already be weeks past due.
Settling disputes can be a challenging and time consuming process. The stakeholders are focused on new problems by the time your AR team becomes aware of a dispute. Getting a resolution and approval for any write off often becomes an AR issue. AR frequently has to take ownership of dispute settlements to eliminate the negative impact on cash flow.
It often requires orchestrating internal and external stakeholders with emails and copies of documents to all the participants to settle disputes. It is a burdensome but important process which can be eliminated. Here is how to avoid having disputes delay payments.
Online Payment Portal
It is inevitable that there will be disputes. The key is to provide the mechanism for reporting disputes, which can also be used to reach a speedy settlement. Disputes need to be settled quickly. The difficulty in reaching a satisfactory settlement increases with time.
An online portal can be a tool for self-reporting disputes. A self-service portal with dispute reporting functionality can be the solution for reporting and settling disputes on a timely basis. An online portal provides the flexibility and convenience of self-service for customers and vendors to manage their accounts whether they are working remotely or at the office. It can be a benefit to your company and your customer/vendors as well.
On-time payment issues are a less of a problem for companies with digital solutions. Accounts receivable and accounts payable cloud-based solutions with customer/vendor portals and digital processes keep vendors and customers connected whether they work remotely or not.
Digital solutions can reduce or eliminate late payments. They minimize the issues that can cause delays in processing payments, resulting in increased efficiency, reduced costs, and increased profits and cash flow.
With a connected accounting solution for your accounts receivable and accounts payable teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Digital Onboarding – Collect master data directly from your customers and vendors
- Accounting Inbox – Make it easy to divvy up work and track progress
- Smart Automation – Automate menial task with accounting integration
- Online Accounts – Give customers and vendors online access to their accounts
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstep.io