Everyone agrees the economy is recovering, so why talk about recession proofing now? Because you don’t patch your leaky roof when it’s raining. You wait for the weather to clear. Now is the perfect time for companies to leverage technology such as Easy TimeBill attorney time and billing software to analyze their costs, improve their profits and be ready for the next economic downturn.
Track Hours Even For Flat Fee Cases
The industry seems to be moving away from the billable hour, but that doesn’t mean you should ignore your time. Easy TimeBill allows you to enter hours and expenses associated with a matter without having those charges show up on the invoice. Someone using the time billing software reviews the costs on a case relative to how much you are charging so you can adjust your billing accordingly. You can also root out unprofitable clients. You know the type: the client who keeps calling for consultation, asking for extra services, and generally taking advantage of your good nature. Know when to “fire” these unprofitable clients and replace them with better ones.
Cut Costs But Don’t Cut Service
Some law firms try to improve profits by reducing their expenses but end up simply eroding their capabilities. Look for ways to work smarter, doing the same work and offering the same quality for a lower cost. If you are still using generic billing software or manual methods, switching to legal billing and accounting software allows you to manage your practice’s finances more quickly and easily. Less time spent on billing is more time spent generating revenue.
Collect What’s Owed
No business likes doing collections. Maybe you don’t want to risk offending a long standing client, perhaps you hesitate to make that awkward phone call, or possibly you just don’t notice how delinquent some accounts have become. Easy TimeBill automates this process, generating late notices for accounts that are 30 or more days overdue. These polite reminders generate a surprising increase in collection rates. You don’t have to be aggressive or confrontational, but you can’t be complacent either.
Prepare your practice now for the next economic downturn because there will be another one. Implement policies and law practice management software technology designed to keep your law firm competitive even as competing firms are struggling to stay afloat.