How Billing Automation Can Enhance Your Collection Rate
It is no secret law firms are struggling with realization and collection rates. According to the Georgetown University Law Center, law firms across the country are not receiving payment for more than 15% of legal services rendered. This is concerning as the delinquency rate usually hovers between five and ten percent. The sad truth is some clients feel the legal services rendered are not worth the cost and simply decide not to pay. Law firms are relying on billing software to pinpoint flaws in the billing process and make the most of the data at their disposal.
Make Paying Easy
A surprising number of law firms do not accept credit cards or electronic payment. Do not force your clients to mail in a check, money order or cash. Your payment solutions should be geared directly to your clients. Legal billing should be completely transparent in all facets. Provide your clients with the option of paying on the web and reviewing the number of hours the attorney has spent on the matter. The option to pay online will reduce your accounts in collections and ultimately facilitate payment.
Be Open to Data-driven Computer Solutions
Data-driven means information collected and used to make the best possible business decisions. In the context of legal billing, billing data is relied upon to glean insights into the use of personnel, worker weak points, highlighting strenghts and so on. Billing data really does have the potential to boost realization rates as well as collection rates. Law firms that rely on the latest analytical tools find it is easier to predicts what clients will pay, organize client billing and ultimately collect that much more money owed.
The merits of using data-driven computer solutions apply to firms small and large alike. Tech breakthroughs are being used for everything from machine learning that predicts billing to artificial intelligence to evaluate large amounts of data for highly complex litigation. Streamline and better-organize your billing operations with automated billing solutions and it won’t take long until your firm’s bottom line improves.
When in Doubt, Bill for Less
When it comes to client billing, greed is not good. Attorneys are required to charge a reasonable rate for their legal services. A number of factors such as the nature of the legal matter, the time/labor required, the client’s limitations and the results obtained ultimately shape billing. It is important to remain reasonable when billing to encourage a continued business relationship that stands the test of time and inspires referrals.
