How to Decide If Legal Billing Software Is Worth the Investment
Managing your law firm is a challenge, especially if it is growing rapidly. As such, many law firms invest in billing software to handle their finances more efficiently. Investing in a document management tool and billing software is not an easy decision.
You want the best for your business, so you need to know which software fits your firm best. Moreover, a lot of businesses adopt billing software because it reduces the time they spend managing their invoices and expenses. Without billing software, law firms might spend days or even weeks before billing clients.
It’s often worse if there’s only one person to manage all the finances. Imagine the pile of work they have to finish while avoiding errors. To eliminate the manual process of billing your clients and tracking your finances, you need reliable legal billing software.
5 Questions to Asl to Determine If Billing Software Is For You
To determine whether a specific legal billing software is good for you or not, you need to calculate the time spent billing each client. More often than not, firms without billing software take more time to compute and bill their customers. To help you navigate the difficult decision of choosing the right software, here are five questions you need to ask yourself:
How much time does your firm spend creating invoices each month?
Without billing software, every bill needs to be manually recorded and created in your database. You will manually input each client’s name, date, task descriptions, fee, and taxes. Inputting and sending invoices is time-consuming, especially if the firm is growing.
How much time does your firm spend reviewing bills each month?
Aside from creating and sending bills, you also need to review your invoices each month to ensure that everything is accurate. Despite having time tracking software in place, it will still take up your time. It only gets more difficult when these bills are printed and reviewed by hand.
How much time does your firm spend sending bills each month?
Once you can compute the bill for each client, you need to send them. Sending an invoice can be through mail or special delivery. Billing software will make everything easier because the invoices can be sent or printed for each client as soon as they are processed. It might even be possible to send a copy to the client’s email.
How much time does your firm spend processing payments each month?
After sending the bill to each of your clients, they will pay through checks. These checks will be delivered to the bank and recorded in the firm’s files. If you’re manually tracking these through a spreadsheet, it can be pretty challenging.
Every invoice needs to be listed, and every check needs to be referenced. There is a chance that errors may occur, and sometimes you won’t see if you missed anything. This isn’t ideal, especially if you follow up on a client that has already paid their invoice.
Make sure to ask your team how much time they spend on each task. The results will help you decide whether you need billing software or not. We still recommend getting legal billing software to reduce the burden on your shoulders.
If you need help with legal timekeeping management, we can help you out. Legal technology helps law firms, corporate legal departments, and private attorneys run their practices and departments far more efficiently. Contact us today!