Which practice can help to minimize disputes over accounts receivable?

Documenting all communications and agreements with customers is essential for minimizing disputes over accounts receivable. When all interactions, agreements, and changes are meticulously recorded, it provides clear evidence of what was agreed upon between the parties. This documentation serves several purposes:

1. Clarity: It ensures that both the business and the customer are on the same page regarding the terms of the agreement, payment due dates, and any arrangements made. This clarity can significantly reduce misunderstandings that might lead to disputes.

2. Reference: In the event of a disagreement, having documentation easily accessible can help quickly resolve issues. It allows both parties to refer back to the original terms, conversations, or emails, making it easier to verify claims and settle discrepancies.

3. Accountability: It holds both parties accountable to their commitments, knowing that there is a record of what was discussed and agreed upon. This accountability can deter potential disagreements from escalating into serious disputes.

By ensuring that all aspects of the transaction are documented, businesses can create a solid foundation for their accounts receivable management, reducing the risk of conflicts over what was promised or expected.