For almost 20 years, QuickFee has offered law firms a full suite of solutions to manage Accounts Receivable and online payments more effectively. 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. Improving your accounts receivable process is not just about collecting money; it is about creating a smoother, more reliable system for both your firm and your clients. By adopting electronic invoicing, offering flexible payment options, and leveraging automation tools, you can build a process that supports your firm’s growth and financial stability.
- Using a product-centric and customer-first approach, ProfitSolv collaborates with firms to offer better client services.
- A chargeback can be challenging since the outcome is up to the card company’s discretion.
- As for businesses in other industries, standard law firm accounts receivables processes can be time-consuming, demanding work before and after the service has been completed.
- By seamlessly connecting to your existing system, InvoiceSherpa removes all double entries and reduces the manual labor required from your team.
- This secure online payment portal simplifies the collection process by offering clients a convenient way to pay invoices with credit cards, debit cards, or e-checks.
Revenue Recognition in Legal Services
Your entire accounts receivable flow can easily be outsourced without having to change your current processes or bookkeeping and payroll services make any technology changes to your current system. You can automate as much or as little of the accounts receivable process as you like. Additionally, call every client who has not paid a prior month’s invoice and ask for payment. If you’re feeling reluctant, think about whether you’d rather ask for what you’ve earned or write off this client’s balance. Failure to communicate is a no-no, both from your state bar’s perspective and with respect to your law firm’s financial health. According to ABA Journal, one of the more common complaints against lawyers is a lack of client communication.
- Do away with manually monitoring payments and sending clients reminders.
- A comprehensive chart of accounts tailored to operational needs categorizes expenses into distinct areas, enabling precise tracking and analysis.
- With increasing operational costs, changing client expectations, and heightened regulatory scrutiny, law firms must implement strong financial strategies to navigate these challenges.
- An online payment service provider will automatically generate invoices, send reminders for due payments, and provide detailed financial reports.
- The key to mastering ARM is creating innovative ways for clients to pay.
Communicate with clients proactively
Receivables automation increases your efficiency and productivity, and takes away any extra costs such as printing that may go into manual accounts receivable methods. One of the biggest advantages of leveraging tech, like a legal billing and payment solution, is how they can digitally automate your end-to-end billing processes. 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, bookkeeping following up with clients, and chasing payments.
The Unique Challenges of Legal A/R Management
Believe it or not, your accounts receivable process begins with the first client consultation. You can track the effectiveness of your A/R improvements by monitoring your collection rate trends over time. Do that and you essentially fund the cost of the client’s legal services out of your pocket. Lawyers experience this all too often—on cases that no one intended to be pro bono.
Clients may delay processing payments when there is confusion regarding the services rendered. law firm accounts receivable management To avoid such issues, make sure your invoices are clear, concise, and detailed. Avoid legal jargon and explain each service that clients are billed for. If possible, break down large tasks into summaries non-experts can digest. However, zero AR may be tricky to achieve when you’re already caught in the thick of managing high receivables.
