Challenges faced by Legal firms and their Smart SolutionsVeronika Tandon
The foundation of the success of every business is indeed the proper management of the finance. And in maintaining that finance, various challenges come. Every sector has to face those challenges.
Here we are talking about Legal firms. These sectors are also facing such kind of challenges especially when they are not having time tracking and legal invoice software, implemented into their billing and collection process.
Being a lawyer, if you bill by an hour, then it is difficult to manage how much time you have spent, and making invoice accordingly, and the process of collecting due payment on the right timing.
Legal firms seriously need to implement invoicing software as these sectors are facing invoicing delay challenges as this could be seen in some facts and stats. Have a look below:
According to Business of law Stat Invoicing and billing present steep challenges for law firms.
According to a recent law firm billing survey we conducted:
- 73% of law firms report experiencing past due accounts
- 58% say they spend too much time on billing
- Roughly half of the small law firms say about 4 in 10 accounts are past due
- 82% report client financial hardship as the root cause
Challenges that come in the way of the legal firms
Now, have a look at some of the challenges that legal firms faced and the solutions to come out of those challenges.
The enormous Balance between Legal Work and Administrative Tasks
It is mandatory to get started some kind of automated tool for Online Invoicing that may reduce the work pressure, otherwise, you will waste the whole day and the precious time in the invoicing and the billing process. Because if you do manual invoicing, it will obviously take a lot of time in completing this invoicing process. So, it is required to make use of legal e-billing software toll in order to make error-free invoicing.
Apart from creating invoices on time, there is one more challenge for legal firms and that is to get amazing receivables in order to maintain the proper cash flow of the business.
There are some clients whose payments are due, and the firms need to keep those clients in the follow-up. But this is sad to say that instead of making proper management of the follow-up method, they treat their clients inaccurately.
So, instead of following the wrong way, it is suggested that the legal firms should adopt the best kind of law firm billing software which will help them to save their time and will create error-free invoicing.
What should be done in order to overcome these challenges?
The Best Way to Streamline the Billing and Collection Process
So, here is the best rule to get payments of time. Do you know how? Well, first of all, you are required to create invoices timely and then proceed further. Try to avoid making a gap between the work and the sending of the invoice. Because if you do this, the client may likely to deny to pay on time or within time.
Apart from this sending all invoices altogether may scare the client with a huge amount. Then this may also become one of the reasons which will make the clients to delay the payments.
So, the legal firms are required to make use of legal firm invoice software, which will help them to come out of these challenges with the benefits of time-saving and error-free invoicing.
Have enough detail on your invoices
Along with the creating general invoice, you are required to mention the whole details of the invoice on the invoice bill such as client, matter, work completed, additional sundries and any monies deducted or received.
Set Categories and Codes for Nonbillable Hours
If there is maintaining of billable hours, then there should be a preparation of non-billable hours too. If you are charging per hour, then it is required to make the different categories of those activities that are done under those hours. So, this can be done with the implementation of a perfect legal billing system.
Ensure payment terms are clearly listed on invoices
No matter, your system of making invoices are manual or automated, you are required to mention the payments clearly listed on the invoices. If you are not clear on your end in concern to billing and payments, then how you would be able to make clear the customer’s point of view.
The invoices should be created with the proper description of the project, only then you will be able to get the payments on time. And yes! Only with the use of legal firm invoice software, payments terms could be clearly listed on invoices.
Make payment methods easy
Another way of receiving payments earlier is that you are required to make payment methods easier for your clients. Today legal firms are giving their clients the provision of the easy mode of payments like mobile accounting transaction instead of old methods of payments.
So, these were the invoicing challenges which are being faced by legal firms and their solutions to come out of them. Like various other sectors, legal firms are also the one that are facing invoicing challenges. So, it is suggested if you are one of those who is facing such challenges, then go for implementing legal e-billing software.