How To Get Paid For All Your Invoices Via Zero AR
This program does not carry MCLE Credit. It is intended for informational purposes only.
Most lawyers are taught and even encouraged not to vigorously pursue non-payment from their clients. Malpractice insurers will absolutely raise premiums if a firm is in the habit of suing clients for non-payment.
But law firms are like any other business and expect to get paid for their work. With little recourse in pursuing non-payers, the legal profession instead uses retainers and trust accounts to protect from clients who won’t pay invoices.
The side effect of managing two separate trust and operating accounts is the burdensome work of managing those accounts ethical and legally. The efforts to manage the bookwork for small firms is especially taxing and eats into valuable billable time. It also leads lawyers to bill time towards a retainer fee instead of an outcome. If a firm collects $5,000 on retainer, the mindset becomes they must work enough billable hours to invoice for $5,000, regardless of if that’s necessary or needed.
There is justification on using retainers to ensure payment as the industry average on collection rate for sent invoices is around 88%. That’s a massive amount of potential revenue never being realized. And while how much a firm is collecting for sent invoices should always be a priority that is never more true than during this last year with the business repercussions from the pandemic. Not collecting 12% of your earned work could be the difference between staying in business or having to shutter the firm.
There are firms that exist, however, that have established practices that not only have drastically reduced the work and headache of maintaining trust accounts but also produced a 97% collection rate on sent invoices.
In this program you will learn the steps necessary to reduce trust accounting load and increase collection rates.
- Why accepting e-payment is necessary to meet client expectations
- The ethics and tools for storing payment information for clients before work commences
- The proper communication on how payment for invoices will be processed
- How software can help speed the process of running payments and reduce office management time
Raza Hasan, CEO, TimeSolv
- June 17, 2021
- Online On-Demand