Legal Billing: How to Do It Right
- November 25, 2019
- Category: Business
Billing management is one of the most important in the day-to-day operations of law firms. This is also a common source of headaches. Without a proper approach, this can result in poor customer satisfaction, and in the end, will hurt the profitability of the law firm. To prevent this from happening, keep on reading and we’ll share tips on how to do billing properly.
Use Billing Software
One of the best solutions is to tap the power of legal billing software like Rocket Matter. This is an advanced tool that can take law firm billing management to the next level. Gone were the days when lawyers have to manually compute the billables. With the use of the right tools, lawyers can record billables automatically. The right software also helps in creating invoices and making sure they are sent to the clients on time.
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Be as Detailed as Possible
Do not leave room for questions. When you send the invoice, include a detailed explanation of every item. It speeds up the payment. Otherwise, the clients can end up contesting the billables and this can prolong the cycle. According to the American Bar Association, one of the keys to effective invoicing is being detailed. This will help customers to understand what they are paying for. It is also important for transparency and building trust.
Keep it Simple
While it is important to be detailed in the invoice, keep it as simple as possible. A good way to do this is to use simple language. Avoid jargon as it will be difficult for the client to understand. Do not use abbreviations that non-lawyers do not know. The simpler the invoice is, the lesser is the chance that clients will contest them. It also won’t make the bill look suspicious.
Do Not Go Overboard
A law firm is a business. Understandably, profitability is one of its common goals. However, do not go overboard. What this means is that you should know what should be billed and what should not be billed. For instance, menial administrative tasks should not be included in the billables.
Create a Schedule
This is beneficial for both the client and the business. By having a schedule, there is a lesser chance that payments will be delayed. This can also improve client satisfaction. Having a consistent schedule also allows the clients to anticipate their payables.
Offer Multiple Ways to Pay
It is also crucial for law firms to tap multiple modes of payment. This way, it will be easier for clients to settle their financial obligations. For instance, it is good if you can accept credit and debit card payments. By making it easier to pay, clients will have lesser excuses to not settle any amount they owe your firm.
Billing is an art that law firms need to master. From the use of billing software to tapping multiple payment methods, consider our suggestions above to make billing management easier!
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