The vast majority of accounts receivable disputes are due to honest customers perceiving (real or imaginary) an error somewhere in the process.
Address it quickly, get it fixed, but make sure to document everything along the way so your staff can spend less time “getting to the bottom of this” and more time promoting healthy cash flow for your company.
Most perceived errors fall into one of four categories: wrong price, wrong quantity, missing purchase order numbers, and quality issues. The first step in building an efficient accounts receivable dispute resolution process is to figure out your most common dispute types and sort them out into categories like the ones above. That way, when a dispute comes up, you can move to the category of dispute and start the first step on that resolution process.
Tracking the issues is important. It’s worth the time in labor to track each issue that comes in (not only so you know which clients tend to have issues) so that your team gets used to seeing the type of dispute and knowing immediately what to do rather than seeing the dispute as something unique and creating a unique problem solving process every time.
With a formalized process, your staff always know what to do, even the new people. Your customers feel better because your staff is more confident. And the disputes get handled faster leaving more time to bring in more money.