Pitfall # 4 – Not Utilizing Built-in Collection Support
One problem most law firms share is a pile of unpaid accounts receivables. Yet, your firm can easily embed tight receivables controls in your legal billing system and streamline your collection process with the right legal billing software.
Make sure your firm takes a proactive approach to debt collection rather than dealing with the issue after the fact and use legal billing software with built-in collection support.
Look for billing software with automated features that allow your firm to:
- Capture incurred expenses (e.g. court filing fees, travel costs, courier fees) when they are incurred and allocate expenses to clients for future billing. This way, you won’t overlook charging a client for expenses.
- Flag and automatically generate batch reminder letters, when a client’s advance balance falls below specified amounts.
- Flag client accounts when unbilled amounts cross a threshold you specify. You may need to send the client an invoice immediately, rather than waiting for the normal billing cycle to kick-in.
- Auto-generate overdue invoice reminder notices at fixed intervals.
- Request retainer replenishments with the help of a retainer alert system that issues periodic reminders.
Remember, bill collection is an on-going and vital practice management process. If your billing system can act as your collection agent or at least provide receivables controls, your firm is miles ahead.
Download a free trial and try Easy TimeBill today.
Use legal billing software with built-in collection support to avoid Pitfall #4 and substantially increase your law firm’s profitability, even in a challenging economy.