Easy Ways to Track Your Client’s Payments

3 Aug

Easy Ways to Track Your Client’s Payments


3 Easy Ways to Track Your Client’s Payments

Finances and customer relationships are an important aspect of every business. Keeping up with accounting and customer information can be an overwhelming task. A legal firm, therefore, needs a reliable system that can handle such information without omitting any detail. Efficient law firm billing software will increase productivity and save time. How can you easily track your customer’s payments?

A customized billing plan

The legal billing software is dependent on the type of firm be it a small firm, large firm, a solo practitioner, associate or partners. The software should meet all the needs of the particular law firm. It should be flexible enough to create a plan for every client. It should have a feature that generates invoices based on hourly billing, flat fees, contingency fees, split fee, retainer fee and transactional fee among others. Time tracking is an essential feature as the billing is dependent on this. Gaps in billable time can be corrected by having a missing time reporting to avoid any losses in the calculations of billable hours. A system that generates quotations for potential clients may come in handy in a legal firm. Innovative billing software sends invoices and notices such as past due notice automatically. Proper billing ensures that accurate invoice is forwarded to the client and thus no delays in payment due to errors.

Invoice management and customer relationship management

Good billing system and invoice management are vital as it encourages regular cash flow and saves time for the accountants. A powerful Software minimizes potential human errors as the billing is done automatically. The Legal Electronic Data Exchange Standards (LEDES) is a popular e-billing standard used by many law firms to deliver invoices. The invoices should be designed in such a way that it has the law firm’s logo, is easy to read and is professional. A Legal billing software should communicate tasks and costs of litigation. Records of sent invoices and customers’ information are valuable in tracking the client’s payments. A law firm should, therefore, maintain an online customer database. The database can sort out information on who pays on time or who pays late. Reminders if there is late payment should be made automatically.

Financial management

Invoice and financial management are closely related. Powerful legal billing software should allow credit card processing and electronic funds transfer. Online services such as PayPal will ensure payment is made on time as it is fast and easy. A majority of the population prefer E-payments. With an efficient billing software, the law firm owner and employees such as a paralegal and accountants can maintain account balances for clients. After an online receipt of payment, the software should reflect in the bank account.The software should generate reports with information such as invoices that have been paid, those awaiting payments and those that are past due. Discounts on early payment and interest for late payments should reflect on a client’s account. It should print financial statements, reconcile bank statement and manage clients’ trust accounts. The Interest On Lawyer Trust Account is an accounting feature that is essential for any law firm. In some instances, the financial software will enhance IRS fillings.

What should you look out for in a law firm billing software?
• The software should integrate with other systems
• It should have mobile accessibility
• It should track time across multiple locations
• It should be affordable
• It should be easy to understand
• It should be secure

Example of an innovative software
As technology changes so do the people’s needs change. People now prefer getting everything in one place so that they can save time and money. The Odyssey Case Management system is a software that collects and stores court information from South Dakota circuit and Magistrate courts. The unified judicial system has e-filling, e-payment, e-citations and e-documents features. The South Dakota Odyssey case management allows attorneys and paralegals to access court records and find cases, hearings, and judgments. In civil matters, filings, pleadings, briefs, motions, and petitions are done online. It is a powerful system with lots of benefits for the law firms, attorneys, paralegal and the courts.

For easy tracking of the client’s payment, a proper legal billing software is key to having an effective law firm. The size of the firm plays a significant role in choosing a system as a company with many clients require a robust system.

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