Billing can be a headache for lawyers, especially without a solid system in place. From tracking billables to getting paid on time, end these headaches by following the billing tips we’ll share in this article.
- Use a Billing Software
A legal billing software like Rocket Matter provides a way to streamline the billing process. It tracks billables automatically, making sure to record every minute of work that needs to be charged. There is no need to manually record every minute of work. It also provides a platform to customize invoices and send them on time. In turn, this ensures timely payment of the invoices.
Rocket Matter’s software helps beyond billing. It is also a platform for document management and consolidating schedules. Demo their law practice management software today and see how it helps to improve the lives of lawyers.
- Implement Value-Based Pricing
Value-based pricing refers to setting prices based on the perceived value of the product or service. The attorney gives a fixed rate before representation based on the situation and the work that needs to be done. It has an upfront fee model that serves as an alternative to the traditional hourly billing. Instead of paying for time, clients pay for the knowledge and expertise of the lawyer. It helps to forge stronger relationships as the focus is on the client.
- Be as Detailed as Possible
In one article from the website of the American Bar Association, the author notes that one of the most important in billing for lawyers is to be as detailed as possible. The invoice needs to breakdown everything the client needs to know about the amount that is charged. Aside from the description of the task, details need to include the time it took to complete it. Do not use vague descriptions. Transparency is critical to gain the trust of your client and to prevent the invoice from being questionable.
- Maintain Open Communication
Communication is important to avoid billing problems. An open line between the client and the lawyer is needed. If there is an issue, the client must be able to talk about it to the lawyer or staff of the law firm openly. Lawyers must be able to clarify any issue the client has about the bill. Before the start of the work relationship, lawyers need to openly communicate the fee arrangement for clients to have clear expectations.
- Set-Up a Payment Plan
A payment plan makes it easy for clients to settle their payments. Aside from sending automatic reminders about the amount they owe, it also provides different modes of payment depending on what is most convenient for the client. It helps in preventing delayed payments. Some law firms even have a website where there is a client portal and there is a button that allows them to immediately settle the payments.
With our suggestions above, lawyers can enjoy better billing practices. These tips will help improve client satisfaction and boost profitability.