So, offering different payment options for your clients is appropriate. Relying only on cash or checks might incur unwanted delays in client payments. In such cases, providing alternate payment https://www.bookstime.com/articles/law-firm-accounts-receivable-management methods will prompt clients to repay. On the client-facing side, many attorneys report having more time to dedicate to their clients, helping to build important relationships and establish their reputation in the market.
Optimized Document Management
Calculating your collection rate for the past year can give you an idea of how your law firm is performing. To calculate it, divide the Legal E-Billing total amount you’ve collected by the total amount that you’ve billed. Clio Manage’s Automated Bill Reminder feature enables you to track outstanding bills and automatically send outstanding Balances to clients and bill recipients based on a schedule. Follow up on all outstanding bills from one place—it couldn’t be simpler. If you’re looking to offer client-centric, secure payment options, then Clio Payments is just what you need.
Professional Collection Services
Firms must ensure that payment procedures are clearly and completely communicated to clients so that there is no confusion about when and how payments will be processed. These communications may include the initial engagement agreement and a separate payment explanation agreement. Also, firms can send automated payment notifications with each invoice. For example, if payments will be automatically drafted five days after the invoice date, law firms should explain the process and timeline to clients.
- By leveraging advanced software and tools, firms can ensure that document handling is no longer a bottleneck but a streamlined process that contributes to overall success.
- For administrators managing day-to-day operations, Microsoft 365 delivers intuitive, integrated tools to reduce manual tasks and simplify support needs.
- The process saves clients the time to manually remit payment and provides firms with an effective tool for timely and complete collections.
- These rules mandate that client funds be kept separate from the firm’s operating accounts to prevent commingling, which can lead to severe penalties and reputational damage.
Improving the accounts receivable process for your law firm
Accounts receivable (AR) represents the total amount of money clients owe to the law firm for services provided but not yet paid. This includes all outstanding invoices that have been issued to clients, ranging from legal consultations to representation in court. Automating time tracking is an indispensable strategy for modern law firms. By adopting RunSensible advanced tools, firms can improve the accuracy of their billing, reduce administrative workloads, and enhance client satisfaction. The challenges of maintaining an effective A/R management strategy at law firms are by no means new. However, the rapid expansion and popularity of digital payments have transformed the way modern businesses manage payments.
- Plus, with our Smart Time Finder, your firm can capture billable time you may have missed via a passive time-tracking feature.
- Plus, it can take a lot of time to transfer that information to invoices.
- Therefore, it’s perfectly reasonable when a lawyer tailors billing arrangements to fit each client’s unique circumstances.
- Furthermore, automated invoices can be customized to include specific details, such as task descriptions or case milestones, enhancing clarity and professionalism.
- This system is internet accessible and assures that nothing falls through the cracks while tracking all client service issues and disputes.
Tedious Time Tracking
You’ll be able to start and stop timers as you work, so you don’t have to recall time retroactively—improving your team’s utilization rate. Afterward, utilize financial software for an overview of all accounts receivable debt owed to your firm. With a holistic overview of your firm’s performance and growth, Online Accounting you’re empowered to be proactive rather than reactive. Now that you’ve made a great first impression, it’s important to maintain that level of service by keeping clients up-to-date on their case, billing, and account status.