What is a dispute and dispute management?
When a customer disagrees with an invoice, we speak of a dispute. The customer will not pay you until the dispute is resolved. In addition to a disrupted customer relationship, this also leads to financial consequences for your company. It is therefore important to reach a solution quickly.
What is a dispute?
A dispute is a dispute between two parties, in this case your company and a customer. The customer disagrees with your invoice and therefore does not pay it.
Causes of a dispute
A dispute can have several causes, such as a:
- complaint about the products or services provided,
- error on the invoice,
- misunderstanding about the agreements made.
Consequences for your company
A dispute can have unpleasant consequences for your company. If a customer refuses to pay, it can lead to cash flow problems. After all, you are missing out on the revenue you expected to receive. Also, such a situation creates a breach of trust with the customer, which also results in negative word of mouth and reputational damage for your business.
Dispute management: resolving a dispute
When your customer reports a dispute, it is important that you, as the accounts receivable manager, come up with a solution as soon as possible. This will prevent the situation from escalating and incurring unnecessary costs.
This could mean, for example:
- you draw up a new invoice,
- a settlement takes place,
- agreements are made about the products or services provided.
By dealing with a dispute in a professional manner, you can prevent further conflicts and maintain or even improve your relationship with the customer!
Preventing a dispute
Good accounts receivable management plays a crucial role in preventing disputes. Make sure your invoicing process is in order and that you make clear agreements with your customers. An automated process can help you do this. By automating the accounts receivable management process, you can intervene in time if a dispute threatens to arise. There are several software solutions that can help with this. Using such a system, you can quickly and easily communicate with the customer, store all relevant information in one place and monitor the process.
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