With so many ways to pay digitally, it can be hard to know which one is right for your clients. What one client is comfortable using might pose problems for another. 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. Adopting a more proactive and streamlined A/R management process has numerous upsides for law firms of all sizes. Better yet, digital legal accounting solutions allow even small firms or independent attorneys to take full advantage of the benefits modern law firm accounts receivable management A/R management has to offer.

Automate follow-up for outstanding bills

• Ensure that your accounts receivable software complies with legal and regulatory requirements, including client confidentiality and data security standards.
• Many agencies have outsourcing services but often the customization is designed according to what works best for the agency.
• A phone call to say, “we’re still waiting on…” is better than no contact at all.
• This makes accounts receivable management accessible for firms of all sizes, including solo practitioners and small and medium teams.
• Generally speaking, once firms send out an invoice, they’ll usually wait until their payment due date expires before contacting a client.

Providing multiple payment methods can make it easier for clients to pay bills without requiring them to mail a check or visit your office. Afterward, https://www.bookstime.com/ 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, you’re empowered to be proactive rather than reactive. So, if A/R management is so essential, why do many attorneys wait until the last minute to collect bills or let invoices go unpaid all together?

How to Improve Your Law Firm’s Accounts Receivable

Instead, devise a process for turning them over to a collection agency. This process should involve some actions on your part before calling the debt collector. Additionally, call every client who has not paid a prior month’s invoice and ask for payment.

Strategies for Law Firm Accounts Receivable Management

Now that you’re on your way to automating firm accounts receivables, consider setting up your law firm’s chart of accounts. Even the best accountant is privy to small mistakes, but the good news is that accounts receivables automation takes common human error out of the equation. Concerns unearned revenue such as inaccurate invoicing and overpayments are mitigated through digitally synced systems. The most beneficial part is that finance teams can keep track of cash flow in real-time, minimizing the risk of duplicate entries.

Complex Billing Arrangements

Don’t be hesitant to take these steps, because you deserve to get compensated for your services. Identify something beyond your client’s matter that they are interested in or brings them joy that you can talk to them about. An easy way to do this is to ask them how their weekend was or if they have anything planned for the upcoming weekend. Take note of what they say and reference it in following conversations. They’ll give you and your work greater value, and they’ll make you a higher priority. Furthermore, it will decrease confrontation if you have to follow up about a late payment.

• According to ABA Journal, one of the more common complaints against lawyers is a lack of client communication.
• To calculate it, divide the total amount you’ve collected by the total amount that you’ve billed.
• Using succinct descriptions in the invoice can also help clients easily understand what you’re charging them for.
• You can also schedule your free demo today, to get a personalized view of how Digitslaw works.
• For newer, smaller outstanding balances, a gentle billing text message reminder might be all it takes to nudge the payment along.

Solicitors deserve to be paid on time for the valuable work they do—and when you’re running a busy practice, you don’t want to waste time chasing down clients for payment. Therefore, law firms must develop effective accounts receivable processes. Isn’t it ironic that you earn money as a lawyer or attorney but face delays in getting paid by the clients?