Search
Close this search box.
Blog » Retirement » How to Handle Invoice Disputes Tactfully

How to Handle Invoice Disputes Tactfully

Updated on February 24th, 2023
mobile invoicing tips for smb

Having a client dispute an invoice is often an uncomfortable situation. You’re billing for how much you believe you agreed upon, but the client isn’t so sure. You’re waiting for payment and growing impatient because you want the money. The goal is to come to an understanding so you can get the cash. Here’s how to handle invoice disputes tactfully:

Be Calm

Be careful not to escalate the situation. Calmly remind them that the invoice is due and ask why they’re not paying. Hop on the phone if necessary. Sometimes context can be lost through email. Acknowledge their complaint and take a moment to gather yourself before responding. Don’t respond through email quickly because the response may be one that you regret. Misunderstandings can be cleared up respectfully so you can keep the client.

Make It Right

If they have valid complaints, make any edits or changes (within reason) to the work product. Make sure, however, that you’re not getting taken advantage of. Client expectations and the scope of the project should be clear. If it’s not, you may have to jump through a lot of hoops to keep the client happy. At some point, you may have to stand your ground and let the client know that you’ve done what they’ve asked you to do.

Show Proof

Maybe the invoice dispute has to do with the price and not the quality of the work. Pull out your backup. Show the signed contract and explain your pricing. Go into detail about how many hours you worked and the value you provided. The problem may just be that the client doesn’t remember the contract and price they agreed on. Explain the contract and explain how they benefited from working with you. The client wants to feel good about the exchange and happy that their money was well spent. You may need to do a little bit of explaining to handle invoice disputes amicably. 

Come to an Agreement

Be wary of reducing your invoices at any sign of disagreement. This is a surefire way to send yourself to the poorhouse. But if there’s a circumstance where your client is truly dissatisfied or the contract was unclear, you may decide to reduce the price a bit to appease the client. An invoice paid at a lower amount may be better than being not paid at all. With that said, reduce your invoices sparingly because you’re not running a charity.

Final Word

Invoice disputes and invoice mistakes don’t have to mean the end of the relationship with you and your client. Find out why they aren’t paying the invoice. Address their concerns with a review of the work and a review of the contract. Make billing changes if you have made a billing error. Fix work that they’re not happy with to a point (don’t go overboard). As a last resort, consider reducing the price by a percentage if that’s what it’ll take to get them to pay. If none of these options work, your last action may have to be pursuing legal action.

Taylor Gordon

Taylor Gordon

Taylor K. Gordon is a personal finance writer and founder of Tay Talks Money, a personal finance and productivity blog on hacking your way to a happier savings account. Taylor has contributed to MagnifyMoney, The Huffington Post, GoGirl Finance, Madame Noire, and The Write Life.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Categories

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More