In the past two posts, we talked about the common issues that affect law firm cash flow management. These include not collecting sufficient retainers, not recording time and expenses promptly (i.e. as incurred), and not sending prompt collection reminders.
In this post, we’re going to add one pesky, persistent issue – and that’s replenishing your existing retainer balance. Law firms – especially solo practitioners and smaller firms – commonly struggle with this. You receive your retainer, and then bill from month-to-month, and before you know it, the original retainer has dwindled to zero. The culprit? Not having a system in place to ask your clients to bring their retainers back up to level – outside of hourly billing.
As creators of efficient, easy-to-use law firm billing and accounting software, Easysoft Legal Software has a solution: Easy TimeBill. With the selection of a few choices, you can easily set up retainer replenishment invoices – and email them to your clients seamlessly with your monthly invoice.
One way to accelerate your cash flow is to sign up for our Payment Acceptance Plan, or merchant accounts for law firms. As far as cash flow management software goes, it’s crucial to be able to offer a processing service that allows your clients to authorize their corporate credit or debit card or even pay by remote check (once they’ve reviewed your invoice). Get the system, and you’ll never have to wonder if the proverbial check is in the mail.
Find out more by calling us at 800-905-7638.