4 Tips for Effective Invoicing

21 Sep

4 Tips for Effective Invoicing

4 Tips for Effective Invoicing for Legal Firms

Both small and big business owners are expected to keep their businesses running, and the only way to achieve this is by maintaining a steady cash flow. It is possible for a law firm to miss payments if they fail to invoice clients. Although the invoicing process can be very complex, any business that does not have a proper invoicing platform is bound to incur massive loses. The New York City Law Department is one of the many law firms that have already adopted the use of modern invoicing platforms when it comes to legal billing. An effective invoicing process guarantees business mangers a peace of mind, and at the same times makes things easy for the client.

Invoices are normally sent to customers or clients as a bill of payments they are supposed to make as a result of the provided goods or services. An invoice indicates the service rendered or supplied product, the amount of money to be paid, and the expected mode of payment. The invoicing process is normally done by the accountants, but small business owners do it on their own. An organization’s invoicing process determines whether they will receive payments within the stipulated time or not. Law firms are classified as business entities, and are also expected to have an effective billing system. Modern law firms have adopted the use of Legal Billing Software that makes it possible for the firms to generate invoices within the shortest time possible. Apart from that, such a software enables a law firm to track time and expenses, provide detailed payment reports, provide retainer alerts, and at the same time locate unbilled expenses. The following are four major invoicing tips that can be adopted by law firms or other businesses:

Automating the process

As mentioned earlier, it is important for both small and large legal firms to set up a Legal Billing Software as a way of automating their invoicing process. The software has invoicing capabilities, and firms can sign up for any of the many available platforms to improve their invoicing experience. In addition, cloud invoicing applications are very effective in securing billing information. Apart from reducing invoicing costs by more than 50%, invoicing software reduces mistakes. The legal department at the University of Georgia has also experienced an improvement in its legal billing process after adopting the Legal Billing Software.
Sending Written Quotes

Before delivering a particular service or product, it is important to send a client some written price quote as it helps to manage their expectations. The written quote should include the estimated cost, and the preferred mode of payment. Before accepting the order, one must ensure that the client has accepted their terms and conditions.

Use of Polite Language

It is possible to increase the chances of being paid by using polite language “thank you for doing business with us” or “please remember to pay on time”. Customers that pay early or on time deserve to be sent thank-you emails or notes because it helps in maintaining a business relationship. Moreover, it is a good idea for businesses to remind customers of their desire to serve them again and some of the new products or services they are offering. Building a strong relationship with customers increases the chances of a repeat purchase or a referral.

Including all the Pertinent Invoice Details

It is always easy for clients to pay promptly if the invoice includes all the pertinent details. Each invoice should include all the essential details because it eliminates delays that are caused by incomplete information. There are some clients that pay attention to detail, and cannot give out any payment if some information is not available. Some of the most important details that must be on every invoice include:
 The invoice ID number
 The amount charged for a service or product
 The related taxes and additional charges
 Details of the service or product provided
 The client’s name and address
 Company Information
 Expected date of payment
 The preferred mode of payment
 The preferred currency
It is always a big challenge for law firms to keep track of all the details, and that is why a Law Firm Billing Software is necessary. A Law firm that wants to keep their invoice data in an organized manner should change from manual invoicing to automatic invoicing. Law Firm Billing Software guarantees flexibility and accuracy in keeping invoice data. In addition, it becomes very easy to retrieve an invoice or any related data if there is a Legal Billing Software.

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