It can be an ongoing effort to get clients to pay their invoices faster or even just on time. Clients run on a different timeline than your firm, so they may not understand the moving parts involved in your billing department. Before you start placing blame, you need to step back and analyze what obstacles your clients may be facing that are preventing them from paying their invoices on time. The issue could very well lie within your firm’s practices or lack thereof.
Continue reading to learn 3 simple practices your firm can implement to get your clients to pay their invoices faster.
3 steps to support your clients to pay you faster
If your billing isn’t in order, how can you expect your clients to be? Having a uniform, the automated billing process is key to setting your clients up for success.
- Step 1: Create a clear communication plan that outlines your firms billing expectations. This should be discussed at the beginning of the client relationship, preferably during the client intake process. The plan should include a scope of work, billing timeline, payment options, fee arranagements and billing point of contact. Think of common questions you get from clients that can easily be satisfied in your communication plan and build from that. This plan should also be available electronically for the client to reference.
- Step 2: Set up online payment options. If your firm is still relying on a papercheck process, it may be creating more hoops for your client to jump through. For instance, if a client is accousted to paying online, they may not have checks easily accesible to them. Online payments are not only a form of great customer service, but they will prompt your client to pay faster. Faster payments means a cleaner billing cycle and increased revenue for your firm.
- Step 3: Create workflows that help keep you and your clients accountable. Just like you, your clients are busy and can occasionally lose track of deadlines. Understanding that this is human nature, you should build in reminders leading up to payment due dates. This alert alone could prompt your client to satisfy the invoice ahead of time.
Technology is key
If your law firm is still hesitant to adopt practice management software, you may be limiting yourself and your clients from success. Particularly when it comes to billing. Closing unnecessary gaps in the paper check billing process and offering modern ways for clients to pay will ultimately lead to a higher yield of on-time invoices for your firm.