Stay on top of matters, communicate with clients, and view documents from your smartphone or any device with an internet connection. When an A/R department takes on additional accounts or finds itself temporarily short-staffed ARMS can step in for the short haul or long haul. Our representative will work with you to customize the ARMS program to fit your need.
Accounting and Bookkeeping Best Practices for Law Firms
Establishing open communication with your client is important to ensure your law firm’s accounts receivable management is smooth. Collecting payments presents a unique set of obstacles for law firms, and understanding these is the first step towards optimizing the AR process. Unlike many businesses that benefit from regular cash flow through repeat sales, law firms often rely on a mix of law firm accounts receivable management retainers, hourly fees, and contingency arrangements. This can create unpredictable cash flow, particularly when clients delay payments due to disputes or financial difficulties. Delayed payments, mounting overhead, and the constant pursuit of outstanding invoices—these are the challenges that plague many law firms.
Modernizing Legal A/R Management With Digital Solutions
Automatic invoice creation and predetermined schedules ensure timely delivery, Accounting Periods and Methods eliminating late fees and potential client disputes. Having an easy way to store client details and payment information is an essential piece of increasing payment efficiency and streamlining your A/R management. When using manual processes or multiple pieces of disjointed software, this can be easier said than done.
Benefits of Accounts Receivable Management
Offering online payment methods isn’t the only way to make your clients’ lives as easy as possible. Go one step further by providing secure payment links or QR codes, meaning clients can pay instantaneously through Clio Payments. If your law firm’s aging receivables are not in the best shape right now, there’s still hope. With key strategies — like streamlining billing, automating payment tasks, and increasing communication — your firm can optimize the A/R process for the better.
Failure to communicate is a no-no, both from your state bar’s perspective and with respect to your law firm’s https://www.bookstime.com/ financial health. According to ABA Journal, one of the more common complaints against lawyers is a lack of client communication. Clients who feel ignored are less willing to pay your invoice and may feel inclined to take out their frustration in an online review. Do that and you essentially fund the cost of the client’s legal services out of your pocket. This is accounting and bookkeeping 101, of course, but those two options are counterproductive financially. Collection agencies may not take your past-due accounts until they’re at least 60 days old.
- Rocket Matter seamlessly integrates with various tools to enhance your AR management practices.
- Go one step further by providing Click-to-pay links or QR codes, meaning clients can pay instantaneously through Clio Payments.
- So, maintain regular communication with the client, even if you have no new updates.
- Additionally, call every client who has not paid a prior month’s invoice and ask for payment.
- Manual handling of payments is a thing of the past; innovative technologies and software are up and running to facilitate smooth transactions.