Tips on Accounts Receivable Management for Law Firms: Enhancing Cash Flow

Our MissionQuickFee helps professionals manage receivables and get paid for their work faster. With one convenient platform, professional service firms can accept online payments, offer financing, and manage client invoices. To meet your clients’ expectations, having an efficient A/R system isn’t just an option; it’s a necessity. This is where new strategies, innovation, and technology come into play – helping your firm stay ahead of the game and keeping your focus on the law, not finances.

Embracing digital solutions for law firm accounts receivable management

• With Clio Accounting you can generate all sorts of financial reports to help you make data-driven decisions for the growth of your firm.
• Clio Payments lets Clio Manage users offer a range of payment options, from online credit or debit card payments to digital wallet and pay-by-bank payments to instalment plans.
• Offering online payment methods isn’t the only way to make your clients’ lives as easy as possible.
• A solid A/R process that lets you stay focused on the important work.
• Invoicing and payment collection becomes streamlined as highly customized invoices, reminders and other communications are sent out on a predetermined schedule.
• So, offering different payment options for your clients is appropriate.

This will help them fully understand and appreciate the effort and time it takes to move their case forward. Offering online payment methods isn’t the only way to make your clients’ lives as easy as possible. Go one step further by providing secure payment links or QR codes, meaning clients can pay instantaneously through Clio Payments. While any change in how you operate your law office can feel overwhelming, there’s never been a better time to start migrating your office structures online. Big tech changed the game in how we run our everyday lives, so stay up to date with the latest available software solutions to keep clients happy.

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Integrating your time tracking and billing software with your invoicing software can also speed up the process by allowing you to automate the process even further. Providing clients with an estimated timeline for when and how often they can expect to receive legal bills can help them manage their budgets more effectively (and avoid any surprise late fees). When you make paying for legal services as painless as possible, your cash flow improves. Still not sure that an accounts receivable automation solution is right for your firm?

Carefully Track Accounts Receivable

Keeping A/R within a reasonable quota shows the “health” of your firm’s finances, reflecting its ability to cover expenses without needing additional credit or cash flows. Make sure the client received the bill (your client portal will tell you immediately). If it has been received, send a gentle reminder that it’s overdue and give them a call to find out when it will be paid. The law firm accounts receivable management client will expect this kind of follow-up since you explained your policies and procedures (and they signed off on them) during client intake. You’ll know immediately when the invoice arrives and the client opens it, so you can make bills due on receipt. Access your firm’s click-to-pay link by selecting New charge from the Online payments tab before clicking the Copy payment link.

In addition, implementing legal software that allows you to automate accounts receivable minimizes the possibility of human error, such as inaccurate invoices, duplicate entries, and overpayment. Most lawyers don’t get into law expecting to tackle accounts receivable management. However, addressing unpaid client bills is unavoidable for nearly every firm. That’s where an automated accounts receivable system comes into play. So, the client has finally entrusted you with their case, and you’ve clarified the payment structure. Establishing open communication with your client is important to ensure your law firm’s accounts receivable management is smooth.

Generally for law firms, when they send out an invoice, they usually wait until the payment due date expires before contacting the client. These due dates vary from firm to firm and once the date has passed without receiving payment from the client, they reach out to remind the client about their invoice. Interestingly, https://www.bookstime.com/ tax deductions can ease the burden when used correctly—yet not all lawyers are up-to-date on their tax deductions. Many lawyers go to one or the other extreme—they either claim everything (and possibly more than they’re allowed to), or they’re so afraid to overstep they miss out on tax deductions.

Do away with manually monitoring payments and sending clients reminders. With the Automated Bill Reminder feature, your attorneys can spend more time on billable work instead of chasing up payment. Use automation to make sending bill reminders an effective, efficient process rather than a never-ending distraction.

Avoid surprises. Instead, manage client expectations

Non-paying clients not only cut into your firm’s cash flow, but chasing every unpaid invoice creates even more work. Clio’s 2022 Legal Trends Report found that offering multiple payment options is the fourth-highest-ranking factor for law firm hireability. An estimated ​​70% of clients want the option to pay via a payment plan, 65% want the option of legal insurance, and 53% want the opportunity to crowdfund their legal bills. If you’re seeking a unified solution for case management and legal accounting, Clio could be the perfect fit. With Clio Manage handling your cases and Clio Accounting managing your financials, you can streamline operations and minimize manual entry errors–enhancing your firm’s performance from intake to payment.

Accounting Services

• If you’re looking to offer client-centric, secure payment options, then Clio Payments is just what you need.
• An accountant who specializes in accounting for law firms is beneficial.
• Hiring professionals is common for law firms, and it’s an easy route to peace of mind.
• Allow online payments through various channels, such as links in digital invoices, email invoices, and even on your website.
• Billing data is handled digitally, eliminating redundant data entry, scanning, sorting, mailing and filing activities and making information retrieval easier.

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. Instead, leading law firms around the country are increasingly turning to digital accounting and payment solutions to increase cash flow and boost productivity.