How Firms Can Make their Billing Process Modern and Efficient
All businesses thrive when they have good cash flow. A law firm is the same; it needs to issue accurate invoices on time and receive payments promptly. Most firms, however, need to improve their cash flow.
Common issues include bottlenecks in the invoicing process, and clients contesting the cost of line items that they feel are non-essential. A firm experiencing this would benefit from using e-billing software.
Why law firms find it challenging to streamline billing
A law firm that works for a corporation follows OCGs or outside counsel guidelines. These are in-house policies regarding billable and non-billable services, and following these is important in securing payments. OCGs vary among corporate clients.
If a firm does not comply with the OCGs, whether by choice or accident, it can damage existing key relationships. Moreover, the rules governing billable and non-billable items are becoming increasingly complex. Reviewing, keeping up, and enforcing these rules are becoming a full-time job in itself, and no firm can keep up with these manually.
How can law firms better organize this process?
Streamlining billing is possible these days. A law firm can now automate the verification process you need to make for each item, saving hours for the staff, and providing clients with timely and accurate records.
Using an e-billing solution allows firms to develop a better system. An electronic system will enable officers to review proposals for billable items early in the record-keeping process, and double-check it before sending it to the client.
An electronic process gives a company the ability to automatically load client rules into a platform, making compliance checks near-instantaneous. This feature makes billing more accurate, which results in lesser pushback and questions from clients.
Improve the entire billing process
When you use e-billing in your firm, you get other benefits. One is that the software has a built-in ability to generate custom invoices. Doing this enables you to determine the time and expense entry columns that would appear on your invoice.
E-billing software also allows you to integrate online payment methods. In the past, law firms only accepted cash or check payments. Today, credit cards and online transfers are accepted. You can make things more convenient for your client by offering flexible payment options. With certain types of billing solutions, you can send a bill with a link for an ACH or credit card landing page.
Moreover, with electronic billing, you can set up automated invoicing. Depending on the software you choose, you can set reminders and follow-up notices to send out at a predetermined schedule. All you need to do is send the first invoice, and the system will be the one to follow up with the client. This is invaluable, especially for firms with multiple corporate clients that need several reminders.
When a company invests in the right e-billing solution, it can quickly produce OCG-compliant invoices, save time, and build better relationships with its clients. Since it is convenient for many businesses to do transactions online, having an electronic payment solution is an excellent complement to a firm’s services.
Find the best e-billing software for your company at Legal Technology Finder. We help law firms and attorneys run their practice effectively by reducing cost and time spent on various administrative tasks. Get started by browsing our listings, or contact us for more information.