Providing clients with various payment methods can significantly improve your collection rates. Many clients prefer the convenience of online payments, which not only speed up the transaction process but also accommodate your clients’ diverse preferences. Regular and timely billing is essential for maintaining a healthy https://www.bookstime.com/ cash flow. By establishing a consistent billing schedule, you create a routine that clients can anticipate. This helps set expectations and reduces the likelihood of delayed payments. Below, we explore these areas in detail and outline how to improve the accounts receivable process at your law firm with Clio Manage.
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Effective accounts receivable management is crucial for law firms aiming to maintain a healthy cash flow and strong client relationships. Here are six actionable strategies to optimize your law firm’s accounts receivable management. Having an easy way to store client details and payment information is an essential piece of increasing payment efficiency and streamlining your A/R management. 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 the correct trust or operating account automatically.
Best practices for implementing AR automation
But while there are many digital payment solutions out there, few are equipped to handle the unique operational and compliance challenges faced by legal professionals. Modernizing your firm’s accounting without disruption requires a specialized technology partner you can trust. When busy practices don’t have an effective law firm accounts receivable management process, unpaid client bills can get out of control in a hurry. However, simply throwing more manpower at the problem isn’t the answer – and frankly, unless you are part of a large practice that can afford a dedicated accounting team, that isn’t an option anyway. The traditional law firm accounts receivable process leaves a lot to be desired.
Offer Multiple Payment Options
Clients appreciate the ease and convenience of automating the payment process. It reduces their administrative workload as well as that of your firm. With LawPay, our sister company under AffiniPay, your firm can accept debit and credit cards, eChecks, and electronic payments while complying with ABA and IOLTA guidelines. LawPay serves more than 50,000 law firms around the U.S. and integrates seamlessly with MyCase.
- Request a demo today and take control of your firm’s financial future.
- One of the biggest challenges in law firm accounts receivables processing is that the work is manual and often lacks standardization.
- Second, you need to minimise the time you spend following up on late payments.
- Hence, it’s always best to send an invoice at a time when clients appreciate you and your work.
- For instance, instead of listing “planned mediation” on their invoice, explain everything that went into that planning, such as research, interviewing experts, and developing strategy.
With prompt follow-up on outstanding invoices, firms can reduce receipt times and improve operational efficiency. Proactively managing accounts receivable is crucial for law firms seeking to maintain positive cash flow. Setting clear expectations, invoicing promptly, and collections efforts can help minimize unpaid bills.
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- However, once this period lapses and the clients haven’t yet paid your fees, you gently remind them about the pending payment by sending a message or calling them up.
- More than just invoicing, you’ll need to communicate pricing expectations before entering into an agreement, track payments received and payments due, and more.
- Use software such as Clio Manage to help track your billable time, expenses and revenue.
- Implementing these strategies can transform your legal firm’s accounts receivable process from a headache to a well-oiled system.
Allowing your clients to pay by credit card is good for your increasing your firm’s cash flow, too. One survey of legal industry professionals found that those who accept online credit card payments get paid 39% faster on average. When you’re busy serving clients, law firm accounts receivable management the last thing you want to do is stop to handle online billing and other administrative work. An accounts receivable automation solution prevents you from deciding between doing client work right now or making sure you get paid for work already completed.
Do you want to see your unpaid bills piling up like the cases you bag? If not, it’s time to revamp your law firm’s accounts receivable processes. 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. Spending valuable work hours on manual law firm accounts receivables processes is far from cost-effective.