Law firms need to engage in efficient billing practices to improve their bottom line. How is this possible? The rest of this article has the answer!
- Use Legal Billing Software
The most important practice is for the firm to use legal billing software. It delivers a number of benefits, such as improved tracking of billable hours. It automatically monitors and logs the billable hours of lawyers. There is also an option to customize client invoices and to set a schedule for sending them out, making sure that payments are received on time.
If you are looking for top-rated legal billing software to use in your firm, consider Rocket Matter as one of your choices.
- Simplify Invoices
In an American Bar Association article, the author recommends the use of clear and simple invoices. It must clearly communicate the specifics of the work the client is being billed for. Avoid vague descriptions of the billable hours to provide the client with a clear understanding of the services and tasks. The invoice needs to be easy to understand and should match the client’s expectations. Most importantly, send your invoices on time. Otherwise, it will result in payment delays that can affect the firm’s cash flow.
- Improve Management of Non-Billable Tasks
Do not ignore the non-billable tasks. Often, lawyers spend a lot of time doing administrative and non-billable work. This is a waste of resources. To address this problem, the firm needs to hire support staff to handle the work. This will help the lawyers concentrate on their billable hours, which also presents an opportunity to improve the law firm’s profitability.
- Set Up a Payment Plan
This makes it easy for your clients to send payments. More than improving billing on the side of the law firm, this also delivers a high level of client satisfaction. Having a flexible and convenient payment system and plan can make things easier for all clients. Using the right billing software makes this possible. It also provides clients with different methods to settle their payments.
- Educate Your Client and Staff
Inform people who are involved in the billing process, including your clients and the billing department of your law firm. Proper education and training allows employees to carry out billing practices successfully. Educating the client is also crucial, as it informs them of the specifics of the invoice so that they can understand it better.
- Bill Early
Timing is important when it comes to law firm billing. Send the bill when the perceived value is still at its greatest. Through the days, the value diminishes. That said, send the invoice immediately after having a productive meeting or a good conversation. If the meeting or the conversation isn’t fruitful, there is no need for immediacy.
Take note of our suggestions above for better billing management in your law firm. Perhaps, the most important is to embrace technology and use tools like billing management software.