Improving the Accounts Receivable Process for Law Firms: A Guide

Calling clients for payment follow-ups, sending snail mail, and other manual A/R processes can create a lot of unwelcome stress and tension. If a practice has limited or inflexible payment options that make it inconvenient or difficult for clients to pay, it can make the situation even worse. Complex billing arrangements, like contingency fees or tiered pricing structures, can leave clients confused and hesitant to pay.

Communicate with clients proactively

• By then, the client likely doesn’t remember what you did, and therefore doesn’t remember the value you provided.
• In such cases, providing alternate payment methods will prompt clients to repay.
• Today, grocery shopping and movie ticket purchases can be made with a click from the phone.
• However, you work at a law firm, not a lending institution, so you need to make sure you get compensated.
• It offers tiered plans, so you can upgrade to higher tiers as your business grows.
• Do that and you essentially fund the cost of the client’s legal services out of your pocket.

Automating A/R management has a number of distinct benefits for law firms. First and foremost, your attorneys will waste significantly less time on calculating and sending invoices, following up with clients, and chasing payments. There are several steps firms can take to reduce the time they spend chasing up late payments and make life as easy as possible for their clients. What’s more, with tools like Clio Manage, you can resolve potential chargebacks from one single portal in no time.

Be Timely With Your Billing

• Additionally, Rocket Matter Pay boasts features like automatic deposits within 12 business hours and the ability to store client payment information securely for future transactions.
• It’s easier for clients to pay their bills—meaning firms get paid for their hard work without needing to constantly chase up.
• If you want to streamline your accounts receivable process without sacrificing functionality, it’s a reliable and cost-effective choice.
• They are often viewed more quickly by clients, which can speed up payment times.
• They’ll give you and your work greater value, and they’ll make you a higher priority.

That’s why legal payment solutions, like LawPay, provide firms with a variety of flexible options to accept payments, including eCheck, credit card, and other digital payment methods. Similar to the point above, it’s up to the Accounting for Churches attorney to keep track of billable hours and communicate it to the client. It goes without saying that when done by hand, this is incredibly time consuming. Generally for law firms, when they send out an invoice, they usually wait until the payment due date expires before contacting the client. These due dates vary from firm to firm and once the date has passed without receiving payment from the client, they reach out to remind the client about their invoice. Choosing the right accounts receivable software solution can help you transform financial operations.

Integrations to Help Your Law Firm Get Paid Faster

A phone call to say, « we’re still waiting on… » is better than no contact at all. The more consistent you are with these client updates, the more you can control the narrative normal balance as the case progresses. While you probably won’t collect it, it does show you’re serious about getting paid. And when you do get paid, forgiving it will make you look like a hero. Call them to explain when a big charge is coming instead of shocking them when they open their invoice.

Ultimate Guide to Law Firm’s Accounts Receivable Management (Boost Profits & Reduce Risk)

• We ensure to build your client’s trust by incorporating seamless payment methods that they demand.
• Dashboards give visibility into collections metrics to analyze performance.
• Consider offering scheduled payment plans for clients with a history of late payments.
• Concerns such as inaccurate invoicing and overpayments are mitigated through digitally synced systems.
• Tracking KPIs like DSO, overdue percentages, and collection efficiency can help you identify bottlenecks and optimize processes.
• It’s ideal for mid-sized to large organizations prioritizing efficiency and security.
• If you are calling once monthly on accounts under 30 days late, bump it up to once weekly for accounts over 30 days late.

Legal Buddies provides specialized support at competitive rates to assist with key functions like accounts receivable management. TimeSolv allows law firms to do this to help law firm accounts receivable management them achieve zero ARs and get paid instantly. The software securely stores key client information that gets readily added to automated invoices for a quicker billing process.

Billing Procedures for Law Firms: Clean Up Your Policies

Now, payment due dates can vary from firm to firm; if one sets 30 days, others are more lenient, extending the due date to 60 days. However, once this period lapses and the clients haven’t yet paid your fees, you gently remind them about the pending payment by sending a message or calling them up. But isn’t keeping track of these payments and reminders a bit tedious? That’s where efficient accounts receivable management works wonders for law firms. Proactively managing accounts receivable is crucial for law firms seeking to maintain positive cash flow.