Getting paid accurately and on time is one of the greatest motivations any organization can ask for. More so, for a law firm, you need to keep your cash flow optimal to support operations and avoid inconveniences like delayed salaries, rent overdue, tax issues, and other overhead expenses. Your clients also expect the billing process to be as timely and error-free as possible, keeping them motivated to continue working with you and even driving more referrals your way.
Effective invoicing means your team wastes no time on redundant, non-billable processes while focusing more on optimizing billable hours for increased revenues. But that’s not always the case for all firms, which is why we’ve prepared this in-depth resource to discuss:
- Challenges law firms face with their invoicing
- Strategies for improving billing and increasing cash flow
Challenges Law Firms Face with Their Invoicing
What could be more frustrating than doing a client’s work to satisfaction, mailing them the invoice, then no payment comes along? But strange as it sounds, many attorneys endure such disappointments month in month out, and as much as you want to crucify the client, they (the lawyers) are partly to blame. For instance, delayed payment or non-payment may result from invoicing errors like missing approval signatures, sending the invoice past the due date, etc.
Inefficient Time Tracking
If your law firm charges clients according to billable hours, efficient time tracking is your best bet at getting compensated for all your services. But not all law firms have the proper tools to track every billable second more accurately and effortlessly. Some even rely on the old-school pen and paper, which is cumbersome, time-consuming, and prone to errors. Other attorneys may have upgraded to electronic time tracking solutions, but they still use outdated systems synonymous with worse challenges like cyber breaches, server crashes, and downtime.
Inadequate Billing Expertise
As a small or mid-size law firm, you may not have the budget to hire a full-time billing expert. But, even if you do, what if the professional gets sick and can’t report to work or leaves your firm altogether? The point is lawyers already have too much on their plate. And invoicing, however critical, is not something you want to spend your precious time doing, considering that the process requires some level of expertise. Therefore, the solution is getting an automated billing system that handles everything for you at a press of a few buttons.
Strategies for Improving Law Firm Billing and Increasing Cash Flow
Adopt an Effective Time Tracking Solution
Effective tracking of every billable hour is as good as revenue optimization because what gets tracked gets invoiced. So, the best time tracking solution should help you accurately and conveniently capture every second spent doing clients’ work in real-time. What’s more, the time-tracker should be trouble-free to use, so you don’t miss billable minutes figuring out where the settings are.
An app-based solution like LawBillity can save you money and help you make more by tracking down to the second on the go. That means you can be on the road attending to your client’s work and still capture every second using any device, as long as you have the iOS or Android app. You’ll also love that LawBillity provides detailed reports comparing billable vs. non-billable hours, so you know how and where you spend the most hours.
Follow a Consistent Billing Schedule
Imagine sending invoices to your clients spontaneously and expecting the payment to arrive on time, i.e., on a regular schedule. Unfortunately, it doesn’t work that way! The only secret to receiving timely and accurate payments is formulating and announcing a clear-cut billing schedule to all your clients and sticking to it.
Besides building trust and solid work relationships, having a consistent billing schedule enables clients to plan their finances adequately not to disappoint you during paydays. But what if you get so overwhelmed by legal matters that you forget to bill your clients on time? Well, that’s why you need an easy to use billing system like LawBillity’s that turns tracked time into invoices in a few clicks!
Opt for an Online Payment Option
Online payment is quicker, more secure, and effortlessly traceable via financial statements. If you wish to improve your collection rate and ensure your clients pay on time, you should consider acquiring an efficient online payment solution for your law firm.
There are several electronic payment solutions like PayPal, Payoneer, and ClickBank that your firm can explore. But we highly vouch for LawPay, as it’s specially designed and customized for legal services payments. For instance, it comes packed with features that your firm needs to track time and expenses for client billing effectively. Plus, it automatically generates custom-made client invoices with a click of a few buttons. And with every LawBillity subscription we waive the $20/month LawPay subscription fee!
Start Using an Expense Tracker
It is common knowledge; accounting for every legal expense is key to maximizing revenues. It’s your best bet at ensuring that clients compensate you for every resource you use attending to their matter.
But here’s the catch; physical receipts are easy to get lost and are virtually untraceable, especially if they weren’t recorded. Hence, it can be challenging to account for all the expenses you’ve incurred over the billable period. On the flip side, an expense tracker keeps a record of every legal spending, ensuring that your firm gets reimbursed fully, and you have good record keeping of historical client data.
For instance, LawBillity’s expense tracking enables you to track legal spending by simply snapping a photo of a receipt and attaching it to a matter. You can also attach pre-loaded UTBMS codes or customize your own expense categories making things easier at tax time.
Improve Your Law Firm’s Billing Efficiency with LawBillity!
Have you been looking for a software-based solution to improve billing and increase your law firm’s cash flow without merit? If so, your misery ends here! LawBillity is a technology-driven, all-in-one solution for all your legal time management, expense tracking, invoice tracking, reporting, online payment, and billing needs.
And the best part? You don’t need a static device or internet connection to enjoy the awe-inspiring features. As long as you have your mobile phone and the LawBillity app, you access all the automated billing functionalities anytime, anywhere, even if you’re offline.
So, what are you waiting for? Start your 14-day FREE trial today to see how LawBillity can improve your firm’s billing efficiency!