The financial security of a law firm depends on their billing. Let us explore why the best billing software matters to law firms.
Accurate and efficient billing is essential for law firms. When you have an array of clients, each with their own sets of rules and regulations, you have to be very careful while billing them for your services. That is why you need a good online billing software. It can be a game changer. The right software can streamline the billing process, which means, you can create invoices quickly and accurately. It is also crucial for the financial security of the law firm.
Online invoice software come with a bundle of personalized tools that make invoicing a piece of cake. Let’s take a look at them –
Different types of Billing
Law firm invoicing should be handled properly. Here are some of the billing practices that they follow –
• Alternative fee arrangements: Lawyers do not charge the same amount for every client. This is why they need different types of billings for each client.
• Hourly Billing: A good time tracking software is a must for this type of billing. Lawyers charge by the hours they spend on the case. This is the most common billing method in legal practices.
• Retainer Billing: Before the lawyer starts working on a case, they establish a retainer fund with the client. And then charge fee, depending on the hours spent on the case. The retainer fund is replenished by the client if required. After the case is finished, the unused fund in the retainer is returned to the client.
• Flat Fee Billing: This is a fixed fee billing. It is a clean billing option for predictable cases. The arrangement is done before the start of the case. And it clearly states the exact legal service cost. Barring a few additional costs, this type of billing contains no unexpected costs at the end.
Also Read: Advantages of Using Invoicing Software
These are few types of billings required by a law firm.
Personalized Billing Tools
Since law firms follow matter-based billing, they need tools that are specific to the job, which will generate invoices for all the clients. An automated e-billing software is extremely handy in such cases. A good software comes with personalized tools like expense tracking, billing reminders, and scheduled billing. These tools can be used for different types of billing like expedient time tracking allows accurate billing for an hourly billing model. You can start billing from the first client interaction. Automated billing reminders are helpful for a longer case. A good online invoice software also allows the client to pay invoices with different payment methods. This eases out the payment process, which makes the client pay the amount on time.
Generic Software don’t Work
Generic software don’t understand the idiosyncrasies of legal invoicing. If you use a generic invoicing software, you will end up making a hundred different templates for invoicing. Let us assume, you do all that and start drawing client specific invoices. But, one fine day, you receive a call from client A.You look up his records and find a flat fee billed for a divorce case in his name. You might use that model further. But the same client A could have had another hourly billing case with your firm. This ends up creating a lot of unnecessary confusion. You might lose a lot of money using the incorrect billing model.