Law firms regularly run into many types of challenges when they fail to implement efficient time tracking and invoicing systems into their billing and collection process. Regrettably, these challenges are universal and can easily affect law practices of any size. This is due to firms having many moving parts that have to deal with the stress of meeting multiple client demands, while also focusing on redundant administrative tasks like managing billable hours, sending/receiving invoices, tracking down late payments, and setting reminders, to name a few. These typically require more time and effort than it should because firms are using antiquated methods to accomplish daily tasks. Even if the firm is able to recognize what their issue is, they fail to effectively address the problem and the toll is subsequently taken out on their legal proceedings.
The Overwhelming Balance between Legal Work and Administrative Tasks
Law firms that do not use any automated tools end up spending a significant part of their day recording time and billing/collection activities. The reduced staff of smaller law firms makes them especially susceptible to issues related to billable hours when compared to their larger counterparts. But regardless of their size or any existing fee arrangements, firms have to generate accurate invoices in a timely manner with zero errors. This necessitates the need for an acute attention to detail that places a huge demand on time to ensure everything is correct.
Still, the challenge is not limited to merely creating invoices against billable hours and sending out requests. Law firms also have to collect outstanding receivables to ensure continuing cash flow for their business. If clients are late with payments, firms have to follow up to make sure they receive their dues. Regrettably, attorneys are often skeptical about their follow-up methods and are cautious to offend their clients by pressuring them for payment. The obstacle of time is another aspect that usually prevents adequate payment tracking. If bills are tracked, the reminders are typically inconsistent. Making the entire process an overwhelming affair that many attorneys struggle to rectify.
The Best Way to Streamline the Billing and Collection Process
The most important aspect of an effective payment collection system is the ability to generate timely invoices and address issues at the most infantile stage. The larger the time gap between the work performed and the bill generated, the more likely the client will have objections to the bill. Also, if a client were to receive multiple invoices all at once, they may feel overwhelmed by the total cost, which creates an increased probability for delayed payments. Therefore, Law practices need to find a viable solution that can effectively resolve most, if not all, of their billing issues. Since so many variations of billing requirements exist, it’s necessary that the solution is able to meet a plethora of billing needs and configurations. A dedicated law practice billing system is a wise choice for overcoming these challenges. The help of cloud-based billing technology can infinitely improve existing billing processes and dramatically reduce the effort required to collect invoices.