How to Increase Law Firm Revenue with Legal Billing Software
In any business, keeping an eye on the bottom line is essential. For law firms, this can be a challenge, as there are many ways to lose money throughout a case. From ineffective time tracking to inaccurate billing, there are many potential pitfalls. However, there is one solution that can help increase law firm revenue: legal billing software. Choosing the right legal invoicing software is key to maximizing its benefits. Consider time tracking, billing accuracy, and customer service when evaluating different plans. Take a look at solutions designed specifically for the legal industry to get the most out of your investment.
3 Common Ways Law Firms Lose Money
Time tracking issues
Many attorneys still rely on manual methods of time tracking using spreadsheets or notepads. This antiquated approach to time management is fraught with problems, including the possibility of wasted time and billable revenue, vulnerability to billing disputes, and high administrative costs.
With the spreadsheet or notepad, it’s easy for lawyers to forget to record their time or lose track of their records, resulting in lost billable hours and ultimately loss. revenue for the firm. Manual timing doubles the work since someone has to manually enter all the data into the system.
Manual time tracking makes lawyers vulnerable to billing disputes. If a client questions an attorney’s billing records, it can be difficult for the attorney to prove that the charges are accurate without detailed and meticulous records.
When it comes to law firm revenue, timely invoicing is paramount. The longer you wait to send an invoice, the longer you wait to get paid. Customers cannot pay an invoice they have not received.
Not invoicing promptly sends the message to your customer that prompt payment is not that important to you. Sending your invoices at the end of each month helps avoid confusion or miscommunication and ensures that you and your customers are on the same page.
Getting paid by customers is a significant issue for 61% of small law firms, according to a 2019 study by the Thomson Reuters Legal Executive Institute. Law firms that do not offer their clients various payment options, such as online payments and accepting credit card payments, are more vulnerable to declining law firm revenues due to the non-payment on time.
What is legal invoicing software?
Legal billing software is downloadable or cloud-based and helps attorneys accurately track their time and bill their clients. Robust software, like Bill4Time, will have the ability to track time, LEDES billing format, create custom bills, accept online payments, and meet state bar billing regulations. Law firms use dedicated legal billing software to improve their bottom line by improving billing processes and reducing inaccurate timekeeping and billing bottlenecks.
What billing software do law firms use?
Lawyers are always looking for ways to be more efficient and maximize their billable hours. So they favor cloud-based software solutions that incorporate time tracking, simple billing options, and a customer portal for online payments.
Law firms need industry-specific features, such as trust accounting and IOLTA, that allow lawyers to reconcile trust accounts without a secondary application. They are also looking for software that provides LEDES invoicing, the most widely used e-invoicing standard for law firms invoicing businesses.
Why does my law firm need legal invoicing software?
As a law firm, you know that time is money. Every minute spent on administrative tasks is a minute that could be spent on billable hours.
Automate the invoicing process
You and your team enter subject information once in the form of a time tracker, and the software will take care of the rest, generating invoices and sending them to clients on your behalf.
Manage your cash
You will always have a clear record of what has been invoiced and remains unpaid. You can allocate your resources responsibly to maximize your profits.
Track payments and expenses
Having this information organized and readily available can save you a lot of time and hassle when it comes to filing taxes or applying for loans or lines of credit.
Automating invoicing will save you and your team significant time each month that can be spent growing your business.
How to identify the best legal invoicing software
When choosing legal invoicing software, there are a few key factors to keep in mind.
Choosing a program that is compatible with your firm’s existing technology stack, including your law practice management software, is critical to success. Consider cost, ease of use, and customer support options. Mobile access is also crucial for lawyers who can access their cases on any device – iPhone, iPad or Android.
Finally, security is always a top priority when dealing with sensitive legal information. Look for software with standard security protocols to protect your data.
Keeping these factors in mind will help you choose the best legal billing software for your needs.
Best Practices for Implementing Legal Invoicing Software
There are many types of legal billing software on the market, and it can be difficult to decide which one is right for your law firm.
When choosing new software for your law firm, there are a few important factors to remember:
You must ensure that the software is compatible with your existing law firm management software.
Make sure you understand your law firm’s billing policies before setting up the software to ensure everything is billed correctly.
The software should be easy to use, but you still need to take the time to train your staff to use the new software.
You want a company that is responsive and helpful when you run into issues. If you have any issues, you can contact the support team.
A small initial investment will pay off in the long run by avoiding billing errors and increasing efficiency. By following these simple tips, you can set up your law firm for success with legal billing software.
Increase law firm revenue with legal billing software
Ultimately, you can improve your business results and customer experience by investing in legal invoicing software. Here are five ways legal invoicing software can help you succeed:
1 ) Accurate time tracking
Time entry and expense tracking are crucial for any organization looking to increase productivity and improve profitability. Yet many organizations struggle to manually track time and expenses, leading to inaccuracies and data loss. The software makes it easy to track time and expenses by user, client or project.
Go beyond the notebook and start tracking your time with a cloud-based software solution.
Whether you’re on the go or in the office, easy time entry makes it easy to run timers simultaneously, record multiple time entries on one screen, and automatically convert appointments to time entries. You will always know the productivity and financial status of your organization through daily and weekly summaries.
2 ) Automated billing
Automated invoicing and online payments can make it easier for customers to pay their bills, resulting in faster payment times. Customers tend to delay payment if they don’t understand the invoice. Prevent this from happening by providing detailed and informative invoices.
With legal billing software, you can set up invoice templates with custom settings like your billing policy and payment links to pay online. You can even create batch invoices to save administrative time.
You can even extend your branding while increasing workflow efficiency by customizing and creating branded invoices with your logo.
3 ) Online payments
Online payments are increasingly popular and customers expect businesses to offer this option. You may even miss out on potential customers if you don’t offer online payment.
Online payments allow businesses to quickly and easily receive payments from customers. This can be done by credit card, debit card or even PayPal. Plus, online payments are more secure than traditional methods, like sending a check through the mail.
4 ) Custom Reports
Real-time data is essential for any growing business and for managing cash flow. You’ll need a solution with comprehensive reporting to better manage your business’ financial performance and identify trends to ensure success – review payment history, balance due, collections, expenses, productivity and summary reports.
Legal billing software should be able to run user activity reports, so you can get detailed information about how your team is performing, including efficiency, expenses, schedule, and internal tracking time. This data can help you identify areas for improvement so your team can work smarter, not harder.
5 ) Improved customer experience
Customer portals are a great way to provide your customers with more information and control their billing. Allow your customers to log in, view their account balance, make payments, and view a detailed charge history.
Increase your law firm’s revenue with legal billing software
The legal industry is one of the most competitive and rapidly changing fields. To be successful, law firms need to be on the cutting edge of technology in all aspects of their business, including billing. With so much at stake, it’s no wonder more and more law firms are turning to legal billing software to help them stay ahead of the competition.
This article was written by Dan Bowman.
©2006-2022, BILL4TIME. ALL RIGHTS RESERVED.National Law Review, Volume XII, Number 230