Client Disputing Invoice

Client Disputing Invoice – What To Do

As a business owner, you’ll no doubt come across a whole range of challenges during your time running the company. An issue that can be uncomfortable to deal with is a disputed invoice. Today we’re going to share a complete guide on how to handle invoice disputes and the best ways to avoid this happening in the future. Our team will be here to support you with any difficult conversations such as this and can also help you with your finances by chasing up overdue invoice payments as well.

What is a Disputed Invoice?

An invoice dispute takes place when a client isn’t happy about the amount of money they’ve been asked to pay. As a business owner, you no doubt have set prices that you charge clients and need to stick to these for each of your clients. There are many reasons why a client might not be happy to pay the full amount, but a disputed invoice is a frustrating thing for any business owner to deal with. There are many different ways to handle them, but the main thing we encourage you to do is to tackle the issue head on instead of avoiding it. Sometimes, you can simply discuss a late payment for your client, as they may simply be doing this as they are short of funds. In other cases, you may have to find a solution that works for both of you, especially if you wish to retain the client in the future.

How to Handle a Dispute

The first thing you need to do when you receive a dispute is to make contact with the client. Avoiding communication is only going to make the station worse, so try to do this as soon as you can. Ideally, you should have a process in place where you check in with clients that don’t pay on time or acknowledge receipt of invoices. If you check in with people a few days after you send an invoice automatically, you’ll be able to make sure they have no issues and work to resolve problems immediately. That way, you have the best chance of not leaving an invoice unpaid a few weeks down the line. Make sure you take the time to understand why the invoice is being disputed if you find yourself in this situation, and then you can start to make a decision about the best way to handle this problem.

Top Reasons for Clients Disputing Invoices

To help you understand how to deal with a disputed invoice, you’ll first want to know the most common reasons this even happens in the first place. These are just a few of the most common challenges which can lead to an invoice overdue payment.

Not Satisfied with the Work

A very common reason that a client might dispute an invoice is that they aren’t happy with the product or service they’ve received. Just as you would take back an item of clothing that had a hole in it to a store, someone else might do the same if they found your service not to meet the expectations you set with them. If you find yourself in this situation, make sure you take the time to ask the customer about the details and why they feel this way. If it’s just a case of the product not working, then usually you can just replace the product or some parts. This can be more challenging when it comes to bespoke products but you may be able to fix it quickly and ensure you still get paid fully for your time and efforts.

Faulty Product

A faulty product is a very fair reason to refuse to pay. As a business owner, you need to ensure you are offering customers the product that you advertised, and it’s your responsibility to replace them if they aren’t working. Usually, it’s in your best interest to replace the product, but if for some reason you can’t, you will likely need to find a way to offer them their money back.

Late Delivery of Service or Product

Late delivery is very frustrating for everyone and the longer you leave delivering a service or product, the more likely you will be to end up with a disputed invoice. In the future, the best thing to do to avoid this is to communicate with your client if there is a delay. Be honest about the problem and consider offering a discount on the current or a future purchase if you need to.

Learning how to handle invoice disputes will set you up for success as a business owner. No matter how incredible your product or service is, you’ll likely come across this problem at some point of your career. Contact our team if you need support with your invoices and to help set your business up for success in the future by avoiding late payments.