MyCase passively tracks activities done in the platform to ensure you’ve tracked time for all billable work. With MyCase time-tracking software, you can keep track of billable or non-billable time spent—for flat fee and pro bono cases. You’ll be able to start and stop timers as you work, so you don’t have to recall time retroactively—improving your team’s utilization rate. Consistent communication can help law firm accounts receivable management you get on the same page with clients and minimize the chance of disputes or billing issues down the line. Using succinct descriptions in the invoice can also help clients easily understand what you’re charging them for.

Improve Revenue Realization

• Calling clients for payment follow-ups, sending snail mail, and other manual A/R processes can create a lot of unwelcome stress and tension.
• If a practice has limited or inflexible payment options that make it inconvenient or difficult for clients to pay, it can make the situation even worse.
• Regular and timely billing is essential for maintaining a healthy cash flow.
• Unlike many businesses that benefit from regular cash flow through repeat sales, law firms often rely on a mix of retainers, hourly fees, and contingency arrangements.

Writing off uncollectable accounts receivable can be an effective strategy for adjusting entries law firms to clean up their books while preserving client relationships. Here are some best practices around determining when and how to write off invoices that are very unlikely to get paid. With LawPay, our sister company under AffiniPay, your firm can accept debit and credit cards, eChecks, and electronic payments while complying with ABA and IOLTA guidelines. LawPay serves more than 55,000 law firms around the U.S. and integrates seamlessly with MyCase.

Financial Management Strategies for Contemporary Law Firms

The best way to prevent unpaid bills is to clarify your fees upfront. Clients who know what to expect are more likely to commit to paying for your services. A good client intake process for law firms can help you establish expectations early with prospective clients. Maintaining good client relationships is a top priority for any attorney. Calling clients for payment follow-ups, sending snail mail, and other manual A/R processes can create a lot of unwelcome stress and tension. If a practice has limited or inflexible payment options that make it inconvenient or difficult for clients to pay, it can make the situation even worse.

• For long-term legal projects, the percentage-of-completion method is often appropriate.
• First, you must make it as easy and attractive as possible for clients to pay.
• Those options generally meet jurisdictional requirements for data security.
• Efficient billing and invoicing practices optimize cash flow and strengthen client relationships.

Strategies for Law Firm Accounts Receivable Management

• Our platform will also notify your team when a client views or acts upon an invoice.
• Leveraging Rocket Matter Pay within your billing system empowers both your firm and your clients.
• Effective financial reporting provides insights into a firm’s financial health and supports strategic decision-making.
• Data analytics can identify spending patterns, forecast future expenses, and guide resource allocation.

However, once this period lapses and the clients haven’t yet paid your fees, you gently remind them about the pending payment by sending a message or calling them up. But isn’t keeping track of these payments and reminders a bit tedious? That’s where efficient accounts receivable management works wonders for law firms. Given these challenges, effective accounts receivable management is crucial for law firms. By streamlining the invoicing process, offering convenient payment options, and implementing timely follow-ups on overdue accounts, firms can reduce their AR balance and improve liquidity. We specialize in legal practice management software, including accounts receivable tools.

With legal payments software, offering multiple ways to pay doesn’t have to be an administrative nightmare. More than 1 in 10 surveyed legal professionals from our 2024 Legal Industry Report said that getting Legal E-Billing paid is the most significant challenge their firm faced. However, our report also uncovered that software adoption was key for solving common problems (like getting paid).

The Importance of Effective Accounts Receivable Management

Managing accounts receivable is essential to maintaining the firm’s sustainability and success. If you send your invoices 2-3 months after the case is resolved, there is a chance that clients forget the value you brought to the case or what you did. In such cases, clients may not feel the urgency to pay your fees. Hence, it’s always best to send an invoice at a time when clients appreciate you and your work. How to craft effective letters to build trust, set clear expectations, and enhance client relationships in bookkeeping.

You’ve already put up a good fight in the court, so we know you do not want to chase down your clients for payment. Law firm accounts receivable management is your ultimate solution to prevent such hiccups! It’s about striking a balance—sending invoices on time, making it easy for clients to pay, and following up efficiently on outstanding balances. So, prepare to get paid for your services and grow your law firm with accounts receivable. Rocket Matter’s legal practice management software offers a comprehensive solution for streamlining law firm operations, from intake to payment. By automating time tracking, billing, and client communication, firms can enhance efficiency, boost revenue, and improve client satisfaction.

What is Law Firm Accounts Receivable Management?

Legal Buddies can also provide dedicated AR specialists to manage this function as part of your extended team. Accepting credit card payments makes it easier for clients to pay bills. Provide incentives for clients to pay invoices early, such as 5% off if paid within 15 days.