How To Manage Law Firms Successfully
How to Manage Finances Successfully
1. Have Clear billing policies and procedures. Proper systems should be set to take into account when and how payments should be made to the company. The policies should also stipulate the limit on the amount that can be approved for payment to suppliers.
2. Use of Technology. The old days of storing a huge chunk of paperwork are gone, and paperless documentation has become the usual way of doing things. Any firm that wants to succeed in its financial management has to invest in reliable application and software packages that make billing and invoicing easy. Legal departments and lawyers should invest in a good law firm billing software to aid in managing finances.
3. Carrying out a regular follow-up. This is the only way to convert receivables into cash if a company does not want to fall victim of writing off bad debts. A monthly monitoring is the most recommended timely follow-up.
4. Timely billing. This calculates to adequate collections. A firm should have different billing strategies for various categories of cases. For example, transactional cases should be billed at or before their closing since clients are likely to reinvest the proceeds. On the other hand, billing of litigation files should be monthly.
5. Have a financial manager. Not all lawyers can handle finances and collect bills from clients well. Instead of doing such tasks they are not good in, an expert should handle the monetary tasks of billing, collection, budgeting, and record-keeping for them.
6. Transparency. This is a great virtue in financial management. A firm should have a free exchange of information regarding finances in the organization to foster growth.
7. Use of financial reports. They help promote proper billing and collection customs. Regular review of the financial reports with those involved in collection or billing is another useful practice. The publication of these reports is also important in keeping all members of the firm on their toes.
8. Insist on cash retainers. It is important t to have cash retainers when engaged with another small local company or one that is in another state.
The Use of Law Firm Billing Software
The Billing Process
The Use of Billing Applications
2.Abacus is a unique software which provides one-click time and billing.
3.Clio gives law firms a direct pricing model. This software and PracticePanther charge every attorney $49 as monthly subscription fee and $25 to every other support staff in the organization.
4. Amicus Attorney allows easy transition from QuickBooks as it is compatible with QuickBooks.