Get Paid on Time with Rocket Matter Pay
From the moment you send out an invoice, how long is your firm waiting to receive a payment? 10 days? 30? 60? Long wait times are common with paper billing, but according to the Credit Protection Association, late payments have risen considerably since the pandemic.
We don’t have to remind attorneys why that’s concerning—but for the sake of clarity, we will.
When your clients pay their invoices on time, you’re capable of meeting your own financial obligations. You have the funds and mental energy to provide excellent legal services to your clients, while also investing resources in your operations, staff, and future.
When a payment is late or skipped altogether, though, difficulties can arise. The day-to-day operations of your law firm can be disrupted, including your quality of service.
That's why it’s so important to establish clear policies and procedures for billing and collections and to follow up on overdue payments quickly and systematically.
The importance of timely payments for law firms
Timely payments aren’t the most glamorous topic, but they’re mission-critical to your law firm’s consistent cash flow and long-term financial stability. In their absence, it can be difficult to pay your vendors and bills on time. This can strain these relationships, tarnishing your reputation with clients, suppliers, creditors, and more. Moreover, if your cash flow prevents your law firm from paying said bills, you may ultimately be at risk of being sued for breach of contract.
Plus, the effects of ongoing poor payment practices can make it difficult to invest much into your marketing, client intake process, or staff professional development. As a result, you may struggle to convince new clients to work with your firm.
And your clients aren’t the only ones who’ll notice if your cash flow suffers. Late payments can also lead to decreased morale among employees, who may feel that the firm is not being managed effectively. This can result in increased turnover and difficulty attracting top talent.
How Rocket Matter Pay supports timely payments
When you adopt an online payment platform like Rocket Matter Pay, you can streamline your billing and collections process and increase the likelihood that your clients will pay you on time. Online payments can increase the likelihood that your firm will get paid faster and gain access to funds sooner—because electronic checks and credit card payments clear faster than paper checks, you’ll often get your money in as little as 12 hours.
Adjusting your payment workflows can seem intimidating. We get it. But making changes now will ultimately improve your firm’s financials and foster greater trust in your attorney-client relationships over time.
Plus, Rocket Matter Pay makes it easy. Our built-in payment processing platform has everything you need to increase your collections rate and lower your accounts receivable (AR). Its robust features include:
- Online invoicing
- Recurring billing
- Payment plans
- The ability to store a card for auto-withdrawals
- IOLTA trust compliance
When implementing online payments through Rocket Matter Pay, you can create automated recurring invoicing and payment plans for your clients. This is ideal for those who prefer to make payments over a longer period of time.
Sending out PDF invoices only takes a few clicks, and your clients can easily pay their bills online through an embedded link or sign up for recurring auto withdrawals.
With Rocket Matter’s reporting and analytics feature, you can gain valuable insights into payment trends and patterns. This data can help you quickly identify potential issues with payment and take action, such as phoning the client personally, to ensure timely payment.
Strategies for improving payment times
If excessive late payments are disturbing your financial peace, you’re not alone. Fortunately, there are some steps you can take to alleviate the situation and reduce your risk of financial hardship:
Offer incentives for timely payment
Some firms find great success in offering discounts to clients who pay their invoices online or within a certain timeframe. Creating rewards programs for frequent or loyal clients is also a great way to encourage long-term client retention.
Establish clear payment terms and communicate them to clients upfront
This can help to avoid misunderstandings and ensure that clients are fully aware of their payment obligations. During your first meeting with a client, be honest and upfront about how you will bill them. The letter of engagement you send to clients can then restate your prices. Be sure to include information on your billing terms, when payment is due, and whether interest will be charged on past-due invoices.
Follow up on overdue invoices promptly
Don't wait until an invoice is significantly overdue to follow up. The longer you wait, the harder it may be to collect payment.
It’s not profitable to call every client to remind them to pay their legal bills, but it might be worth it for clients with significant balances. Inquire as to why the payment is late, and then be sure to listen. If you see a pattern, consider how you might adjust your billing and payment processes to make it easier for clients.
Set up automated payment reminders
When clients receive an email about their bill while they’re unloading their groceries or at a dentist appointment (or another similarly inconvenient time), they may ignore it. Sending a follow-up payment reminder makes sure that the outstanding invoice doesn’t fall off their radar—and that they have plenty of opportunity to pay on time.
Be proactive in managing your cash flow
Keep an eye on how your finances are doing on a regular basis and take steps to fix any problems before they get worse. Choose an online billing and payment platform that offers automatic reporting to keep you up-to-date no matter how busy you get.
Rocket Matter is here to help
Don’t let late payments get you down. Rocket Matter is here to help you start collecting the money that is owed to your firm as quickly and efficiently as possible. Rocket Matter Pay simplifies the process of accepting online payments, so your clients can start making them quickly and compliantly.
Take the first step towards a more profitable legal practice. Contact us today to schedule your free demo of Rocket Matter Pay.
More useful posts: