Best Practices for Improving Law Firm’s Accounts Receivable Process

If you’re looking to improve your law firm’s accounts receivable process, Tratta’s embedded payments feature will be advantageous. We ensure to build your client’s trust by incorporating seamless payment methods that they demand. Second, you need to minimize the time you spend following up on late payments. Automated law firm accounts receivables bookkeeping software is designed with your clients in mind. Clients receive the benefit of predictable invoicing and self-service. Friendly payment reminder email templates are available to take the stress out of collecting money.

Key Strategies for Improving A/R Efficiency

Transforming your law firm’s financial performance starts with optimizing your accounts receivable. By implementing the strategies outlined above and leveraging Rocket Matter’s suite of tools and features, you can streamline your AR process, improve cash flow, and drive your firm’s growth. It’s important to stay on top of accounts receivable since it represents revenue for your law firm. Hardworking attorneys invest huge amounts of time in their clients, pumping hours and hours into every case. But sometimes, after all that hard work, you send out the bill and get no response.

• It also allows you to keep invoicing and accounts receivable in-house rather than needing to fully outsource.
• Through automation, these time-consuming processes are streamlined, leaving you and your staff with more time to focus on paying clients.
• Send payment requests easily in their currency of choice and receive payment in the currency of your choice.
• That last topic—how the relationship will proceed—should include a detailed review of payment expectations and the billing process.
• So, offering different payment options for your clients is appropriate.

Streamlining Your Law Firm’s Accounts Receivable Process

• Following these simple tips will ensure transparency and minimize the risk of misunderstandings between the client and the lawyer.
• That’s why our platform makes it easy for your law firm to accept ACH payments, eChecks, credit cards, and financing plans, all through our secure payment portal.
• Efficient management of accounts receivable is crucial for the success and sustainability of any law firm.
• A/R management technology is especially helpful in handling high volumes of billing and ensuring practices remain consistent across your firm.
• While you probably won’t collect it, it does show you’re serious about getting paid.
• A low AR is desirable for law firms because it means clients are paying their bills promptly and in full, ensuring healthy cash flow and financial stability.

Make sure the client received the bill (your client portal will tell you immediately). If it has been received, send a gentle reminder that it’s overdue and give them a call to find out when it will be paid. The client will expect this kind of follow-up since you explained your policies and procedures (and they signed off on them) during client intake. With legal payments software, offering multiple ways to pay doesn’t have to be an administrative nightmare. With MyCase time-tracking software, you can keep track of billable or non-billable time spent—for flat fee and pro bono cases.

Cave v. Cardenas: Defense Verdict for Harrison + Hull

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. Attorneys deserve to be paid on time for the valuable work they do—and when you’re running a busy practice, you https://www.bookstime.com/ don’t want to waste time chasing down clients for payment.

To calculate it, divide the total amount you’ve collected by the total amount that you’ve billed. Accounts receivable are the payments that you haven’t collected from clients. This includes invoices that have been sent but aren’t yet due—as well as overdue bills. 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.

When using manual processes or multiple pieces of disjointed software, this can be easier said than done. Convenient features like Quick Bill and Scheduled Payments help firms collect more payments while ensuring that money goes into either law firm accounts receivable management the correct trust or operating account automatically. Then, send these bills electronically using Clio’s secure client portal, ensuring they reach the intended recipient near-instantly. Automating your law firm accounts receivables process will save you time and the effort needed to repeatedly follow up with multiple clients over an entire year.

You’ve already put up a good fight in the court, so we know you do not want to chase down your clients for payment. Law firm accounts receivable management is your ultimate solution to prevent such hiccups! It’s about striking a balance—sending invoices on time, making it easy for clients to pay, and following up efficiently on outstanding balances. So, prepare to get paid for your services and grow your law firm with accounts receivable. Spending valuable work hours on manual law firm accounts receivables processes is far from cost-effective. Through automation, these time-consuming processes are streamlined, leaving you and your staff with more time to focus on paying clients.