Legal Billing Process

To keep your billing process on track, keep a close eye on outstanding balances, payments, and earnings. The following reports can help you monitor the financial health of your business and facilitate your billing process: Does your company run any of these reports? What about other legal billing tips? Is your law firm already using any of these ideas to save time? If not, what can you implement today to improve your company`s legal invoicing process? If you`re not sure where to start with standard billing requirements, there are many billing models available. Software suites like FreshBooks provide a great billing model for law firms. You can also create custom invoice templates using invoice designs in Clio. Keep in mind that the price you charge is up to you to some extent. If you want to charge a little less to keep legal services affordable for others in your community, that`s fine. When creating a fee agreement, you should clearly describe two things: your payment method and payment requirements. Make sure the customer is aware of your billing procedures and payment terms. Be honest about your prices and explain when they can expect to receive the bill. When considering possible legal invoicing platforms, it is important to choose an e-invoicing software that meets your business needs. This includes the steps needed to onboard and the data to import into your new legal invoicing software. Hourly billing – This fee structure is most common for lawyers, who typically charge in one-tenth of an hour increments. Clear billing policies avoid confusion and frustration when it`s time for customers to pay their bills.

Transparent invoicing also fosters trust. You may want to go beyond general billing procedures for law firms, for example, explain how providers should charge certain expenses and fees. For example, if you limit the number of hours that can be billed to certain UTBMS task codes, be sure to include this information in your billing policies. Reporting – The software should include robust reporting capabilities so you can track billing and payment activity. Legal invoicing specialists control billing activities within an organization. This may include settlement, collection of payments, or preparation and submission of financial reports for review. If you`re able to accurately capture the amount of work required for specific types of cases, fixed charges can be a great approach to billing. They clarify costs upfront and are a form of value-based billing, meaning you charge based on the value you provide to your customer, rather than marketing your time. Bowman, D. (2021, January 16).

Law firm billing: Five ways to make sure your clients pay on time. The National Law Review. www.natlawreview.com/article/law-firm-billing- Five-way-to-secure-your-customers-paytime#:~:text=Many%20attorneys%20prefer%20to%20bill, your%20bill%20in%20one%20payment We also recommend that you receive invoices and payment reminders promptly. The sticker shock of a larger bill that builds up over time can lead to misunderstandings. Regular invoices can keep customers` billing anxiety low and improve your company`s profitability. A standardized verification of invoices is also essential. The built-in lawyer management software is your best friend here: it speeds up the process and minimizes human errors when creating invoices. The practice management software also helps your business track collected payments and schedule follow-ups for overdue accounts. (This can also help with the collection process.) Become an expert in the lifecycle of your invoices. You should be able to quickly answer the following questions about your company`s invoicing process: State of the Mid-Sized Legal Market Report 2021.

Thomas Reuters legal.thomsonreuters.com/en/insights/reports/2021-state-of- the-mid-sized-legal-market-report/thank you A transparent and accessible billing and expense process for law firms saves you valuable time and money down the road. Your process template should include the description standard, expense types, introductory communication on invoices, when invoices were sent, etc. An efficient billing cycle helps increase profitability and build successful relationships with your customers. Good billing practices include communication, consistency, providing multiple payment options, and accurate records. By evaluating the invoicing software against the above criteria, you can provide the best possible billing experience for you and your customers. LEDES billing LEDEs is an acronym for Legal Electronic Data Exchange Standard. If you work for a large company, legal invoices must conform to the standard LEDE format. It is easier for large organizations to manage large amounts of files and data and evaluate invoices because they are encoded in the same format. In addition, LEDE files help your law firm streamline the invoicing process, save time, and better control legal fees. Write down all the steps you need to take during your billing process. Be as detailed as possible.

Writing down your entire billing cycle will make it much easier to identify bottlenecks or areas where you`re wasting time. You can also see which steps can be streamlined or automated. A standardized billing policy also ensures that invoices are accurate and sent on time. Some law firms don`t have the internal processes in place to efficiently process payments, which delays payments and can strangle a law firm`s finances. Effective billing procedures can not only help get lawyers paid, but they can even help grow a law firm`s business over time. For example, a study in Clio`s Legal Trends Report 2021 found that the most successful companies in the study (those that increased revenue by 20% or more over a five-year period) were more likely to adopt new technologies, such as online invoicing platforms. Again, it`s important to think about your process before technology. Don`t be afraid of a learning curve. Software like Clio Manage is intuitive, and a small investment in learning how it works can translate into simplified billing practices for life for your law firm.