Do I have to pay a disputed invoice?

Invoices are one of the most vital financial documents anyone can have. It shows essential information about transactions. However, since it is produced by humans, many of them are bound to have one or two mistakes. That said, there are a lot of people that don’t know what disputed invoices are, which can save them tons of money. Simply put, this is when a customer has an issue with the contents of an invoice. These problems could be the amount invoiced, payment terms, and so on.

As an issuer of invoices, it is important to know that failure to pay a disputed invoice can increase the chance of getting into legal trouble. That said,this article will help to explain several facts about disputed invoices, and how to resolve them.

How to avoid disputed invoices?

The first thing to know about disputed invoices is how to avoid them in the first place. Invoices that have mistakes in them may seem trivial, but failure to dispute them can mean bad news.

The best way to avoid disputed invoices is to double check every invoice issued. The invoice has to be devoid of errors such as problems with the deliverables, and extra charges.

How to resolve disputed invoices?

Although an individual may try its best not to make disputed invoices, mistakes are inevitable. Sooner or later, a trivial or crucial mistake would be made on the invoice.

resolving some disputed invoices is quite simple. Sometimes, it may be a simple billing error. If that’s the case, then all you need to do is to correct the invoice, and refund any extra charges if any.

However, on many occasions, it can be quite tricky, depending on the kind of customer involved. If the customer is understanding, they would want to resolve the problem without any extra baggage. Problem solved. However, if they aren’t, which is often the case, it would quickly turn into a disagreement between the company providing the service and the customer. As popularly known, people tend to believe the customer’s side of the story more. When this happens, it can take quite a while to fix.

What are the most common invoice disputes?

There are several forms of invoice disputes, and they are all common in society. Here are three of the most common:

• Billing problems

The first problem a client can have with the invoice is billing problems. For example, imagine a company issues out an invoice to a client for the purchase of their services for eight hours as agreed. However, instead of billing to reflect the wig to hours worked, the amount for two additional hours is added.This can quickly be detected, and it can quickly become a problem for that particular company.

• Payment terms

This is the second most common invoice problem many companies and clients have. Sometimes, payment for an invoice can be greatly delayed due to missing information and a lack of clarity regarding payment terms. Until this issue is resolved, these payments would continue to be delayed.

For example, missing information like due date or discount information would cause the particular payment, discount, or bonus to be delayed until the issue is resolved.

• Goods and services delivered

The accurate goods and services stated on the invoice can also cause a delay in invoice payment. A client can have problems with the goods and services a company provided. For example, imagine a business providing house cleaning services, but they didn’t specify to a client that they don’t do outdoor cleaning. A client can decide to phone them after they’ve done their job, complaining that they didn’t work on the outside of their home. This can lead to a lot of back and forth, which would definitely delay payment.

How long do you have to dispute an invoice?

Although the above information is enough to start panicking, that’s not what you should be doing. The best thing for you to do is to try and rectify the issue as fast as possible. That said, the legal relationship between the client and business significantly determines the amount of time the customer has to dispute an invoice.

Another factor that determines the time involved in disputing an invoice is the presence or absence of invoice dispute procedures in your terms and conditions. Adding it in your terms and conditions gives you solid ground to deal with the dispute on your own terms. In this inclusion, make sure to:

• Add A time limit
• Ensure Clarity on Procedures and Rules

How to make a court claim for disputed invoices?

More often than not, a company may have to take legal action against uncooperative clients for disputed invoices. It would be best to involve third parties, and what better third party to involve than a reputable court.

The first thing a company should do is to review the contract with the selected court. The court would make sure the company has adhered to their procedures.

For example, If the company had any grace period attached to the agreement, the court would make sure that the grace has been exceeded. Usually, this grace period is about days.

If the terms of the contract or terms and conditions are not reviewed properly, there’s a big chance the company’s claim would be rejected due to technicality.

For the best results, make sure to patronize the services of a lawyer. They have more experience handling disputes, and thus, would help to navigate through the whole procedure.

Can you refuse to pay a late invoice? (*link)

Refusing to pay a late invoice is the same thing as ignoring the late invoice altogether. If you’re in a bind right now, your Google search would likely contain the phrase “Can you refuse to pay a late invoice.” However, there’s nothing to be afraid of when it comes to invoices. In fact, depending on how you handle the disputed invoice, it can strengthen the relationship between you and your client!

Of course you can refuse to pay, but the costs far outweigh the benefits. Hence, it’s better to address the situation. If you don’t, you could find yourself in serious trouble.

The Verdict

All that being said, it is important to remember that failure to dispute invoices on time is harmful. This article has given a list of reasons invoice eroorrs can occur in an invoice, and what to do about it.