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Optimizing Client Payments: The Role of Legal Billing Software
It’s a common question among lawyers: Where does all the time go? Depending on the size of the law firm, attorneys work an average of 42–66 hours a week. This suggests that many (if not most) lawyers squeeze in time beyond 40 hours to hit their minimum billable hours requirement.
What racks up the hours? There are many culprits, but one particularly painful one can be client payments and their time-consuming administrative tasks, like chasing unpaid invoices and ineffective time-tracking solutions.
We’re here with some good news, though: client payments don’t have to be a perpetual thorn in your side.
Bumps in the road: common challenges to client payments
No one enjoys the money conversation with clients. And while it’s tempting to give clients the benefit of the doubt, there are only so many times you can hear, “Oops, I forgot to drop the check in the mail!” without getting frustrated.
There are other legal billing challenges that lawyers need to contend with besides late payments. These include:
- Missed billable hours
- Miscommunication with clients
- Invoice errors
- Lack of consolidated data
12 Legal Payment Processing Features to Look For
Want to see a healthier cash flow and happier clients? Start accepting payments online! On your quest for the right payment processor, look for features that streamline and support the way law firms operate.
How can legal billing software address common legal billing issues?
Legal billing software won’t solve all the problems of the world, but for busy law firms, it solves an important one: supporting detailed processes necessary to generate invoices, deliver them to clients, and facilitate payment.
Legal-specific software solutions do this through features like:
- Time- and expense-tracking
- Invoice creation and sending
- Online payments
- Billing performance metrics
Many of these features include automation, which requires less human involvement and decreases errors for both the law firm and the client.
Let’s explore these software features to unlock the secret to a successful payment strategy that increases cash flow and leads to happier clients.
Streamline workflows with automated time tracking and efficient invoicing
While you may find yourself writing a bit of time on a Post-It to track it later, it may be time to say goodbye to these manual processes and invest in an intuitive time- and expense-tracking solution.
Software such as Rocket Matter captures time from whatever device you work from (including your mobile devices!) and features multiple timers to seamlessly track time from matter to matter, making every minute count.
What are the most common questions law firms ask when transitioning from manual to automated legal time tracking?
Adopting new tools can be difficult for law firms, especially when attorneys and legal staff are used to certain approaches. It’s common to have lots of questions like:
- What kind of time-tracking solution do we need?
- How will the new tools integrate with our current technology and workflows
- Will the system improve efficiency and accuracy?
These are valid questions to ask, but they have a simple answer: when you use software that functions as one source of truth, like Rocket Matter, you get an intuitive, automated software that’s built into your practice management solution. Because there is little manual data entry required, your firm can operate with a high degree of efficiency and accuracy.
How does legal billing software make invoicing easier?
Manually creating invoices can be a headache and a half, from hunting down the right information to populating fields to getting them out on time.
However, legal billing software is a smart solution for this problem. Using the time and expenses you’ve tracked (see above), legal billing software automatically populates invoices with time tracked to each matter or client.
Even better, batch billing processes multiple invoices simultaneously and automatically schedules electronic prebills.
Gain client trust with secure online payments
Checkbooks are a relic of the past—60% of Gen Z doesn’t even own one. Today, it’s essential for law firms to offer an array of payment options: credit cards, electronic checks, or in-person payments.
This gives the client the option that they feel most comfortable with, establishing trust with your law firm. It also shortens the time between invoicing and payment; online invoicing means that clients receive their invoices via email rather than mail and can pay with a few clicks, increasing your law firm’s cash flow.
But not all payment processors are made with law firms in mind. Double-check that yours includes IOLTA Trust Accounting compliance to ensure no processing fees come out of trust accounts.
In what ways can legal billing software improve client communication and trust in billing matters?
Legal billing software allows law firms to present detailed and timely invoices to clients with less effort, thanks to robust time- and expense-tracking features. Fully and accurately capturing all the work completed and its context increases transparency and, as a result, trust with clients.
Legal billing software can also facilitate improved communication with clients when law firms use customizable templates. These templates can include links to payment policies, contact information for questions, and more.
How does legal billing software streamline payment processes and contribute to faster client payments?
When clients pay quickly, law firms can increase their cash flow and reduce time spent on tedious administrative processes. Legal billing software helps clients pay faster through:
- Recurring billing that automates fee collection (clients never have to worry about paying on time!).
- The option to keep a card on file so that clients can take care of invoices in a few clicks.
- Structured payment plans that allow the client to pay on their schedule (making them more likely to pay promptly!).
Improve processes with data-driven decisions
Sometimes, you don’t know the errors in your billing processes until they’re staring you in the face.
Billing performance metrics automatically collect data from invoices to provide relevant process insights. Track KPIs to gain an understanding of bottlenecks in your workflows. Create reports with insights into problem areas for your firm so you can make informed decisions about your firm’s operations.
Why is measuring billing performance crucial for law firms, and how can legal billing software assist in this aspect?
Law firms must measure billing performance to find problems that add non-billable hours to the work day. Legal billing software collects data across invoices, matters, and time tracked to reveal insights on payment processes.
This software highlights critical metrics such as:
- Billable hours (per attorney, per practice area, etc.)
- Realization rates
- Collection rate
- Accounts receivable aging
- Average time to bill
- Profitability by practice area or client
- Write-offs and adjustments
Say hello to a stress-free payment workflow with Rocket Matter’s legal billing software
Implement a legal billing solution tailored to lawyers: Rocket Matter. Our comprehensive legal practice management system offers every tool a lawyer needs to streamline payments at their law firm, including:
- Online payments through Rocket Matter Pay
- Automated invoicing features
- Intuitive time tracking
- Business intelligence
- Legal trust accounting
To see how our software leads to higher profits and happier clients, schedule a demo today.
12 Legal Payment Processing Features to Look For
Want to see a healthier cash flow and happier clients? Start accepting payments online! On your quest for the right payment processor, look for features that streamline and support the way law firms operate.
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