Harvard Law School case management makes skillful use of legal billing software. Even the Director of State Courts entrusts billing software to send invoices securely. Law firm billing software is also relied upon for research management and citation at Yale.
Automation is Key
As an entrepreneur today, nearly anything that can be automated should be. Having a system that helps you stay on top of your cash flow is essential as a business owner. It can be critical to send your invoices in a timely manner, this ensures you get paid on time and business continues as usual. Your most regular clients should have their own invoice template ready to be sent.
Law firm billing software can help you:
- Keep track of who has paid and who has not through notifications
- Make sure you’re sending the invoice to the correct recipient each time
- Send the correct number of invoices
Some invoicing mistakes are sending too many invoices and sending it to the wrong person. Legal billing software helps guarantee that this mistake will not be made. If you’re consistently receiving late payments from a particular client, reach out to them and see if roles at the company have changed. In some cases, you’ll need to forward your invoice to a newly positioned individual. Try to whittle your invoice down to one person if possible. When an invoice is sent to more than one person, it may be assumed that the other individual will take care of it and it’s left on the back burner.
Confirm Invoice with a Written Quote
To help ensure that your client expects your invoice and is satisfied with it, use a written quote. For example, agreements made by phone should have a follow-up email sent.
This confirms the verbal agreement and makes it easy to understand what is to be expected. Do your due diligence and make sure you’ve made it as simple as possible to understand your agreement
Set Appropriate Payment Terms
Create short payment terms to increase the likelihood of getting paid on time. Set up 30 day payment terms and you may be surprised to find that many clients will pay you sooner. In some cases you may have to accept longer payment terms such as net 45 or net 60. Find the best payment terms that will work for you and your client.
Keep in mind that on average, most debtors are two weeks late in their payments. If it is absolutely critical for you to receive payment in 30 days, reduce your payment terms to get paid sooner. You could even add incentives for early payment and late charges to your terms.
Use Polished and Polite Words
There are times when invoices do not get paid simply because they do not provide clear instructions. Instead of paying for the invoice right away, the client may tend to lower the invoice as a priority. Be sure that the wording on your invoice is clear, concise, and very polite. Invoices that are readily understood get paid faster. Make it simple to understand what your clients are being billed for.
Using professional law firm billing software will help you use appropriate wording. Write out the full name of your product or service instead of using internal information such as a SKU. Make sure your logo is on your invoice so your company can be easily recognized. Your company’s logo on your documentation is a mark of professionalism. Legal billing software can help you add this touch of respectability.
Send Invoices Quickly
One reason why some business owners are paid late is because they are slow in sending out invoices. Use law firm billing software to send your invoices as soon as possible, giving your client ample time to review the invoice and pay you. When you’ve completed your end of the agreement, it is time to send the invoice.
If you complete the work on a Tuesday, why wait until Thursday to send an invoice? This is wasted time and contributes to you not getting paid on time. Help your clients pay you on time by staying fresh on their mind and not waiting long periods to send an invoice. If you complete the work sooner than expected, send the invoice sooner than expected.