Flip the Switch: Payment Automation is the Solution for Eliminating Accounts Receivable

Lawyers generally work really hard for their clients, to turn around work product.  And then, they wait . . . and, wait . . . and, wait: to get paid.  That’s largely because, while attorneys have been able to build out most of the payment process, the last part – you know, the part where the law firm actually gets paid – is still mostly entirely dependent on the client.  So, the lawyer sends a bill, and waits . . . and, waits . . . and, waits. 

But, there’s a way to eliminate the waiting, and to unstick your cashflow.  Most case management software and epayment tools now offer payments plans, which can also be set up for subscription; so, that means that if you have a recurring payment model, you can automate the payments (so that they are debited from your clients’ credit card, debit card or bank account – just like with their electric bill), in a pretty straightforward way.  If that’s how you’re billing your clients, it’s time to take advantage of these tools, if you have not done so yet. 

 

Now, there may be times in your law practice, when your billing is more random than that.  If you’re billing hourly, and you have an invoice that needs to go out – instead of waiting for payment, you can click a button in your law practice management or epayment software, to automate the payment, on behalf of the client.  Now, that’s not a full-scale automation – as it does require you (or, someone who works for you), to click a button – but, it’s pretty close; and, most importantly: you don’t have to wait for the client, to make the payment.  Now, you can utilize this process for hourly billing, evergreen retainer payments or additional retainer requests. 

 

So, whatever method you’re using to bill, there is a way to either automate payments, or take the payment action out of the hands of your clients. 

 

In order to pave the road for launching this option in your law firm, you’d need to tweak your payment clause in your fee agreement, to reflect your new process; if you’re taking credit or debit cards, you can add an authorization form, incorporated by reference into your engagement agreement.  And, you can also tweak your billing process, to offer clients an alert (or, notification), to let them know that a payment will be coming out – since you/your team/the software will now be generating the payment, and not the client. 

 

All in all, this is a pretty straightforward setup – but, it’s one that will unlock your law practice revenue, like never before. 

 

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If the waiting is the hardest part, give us a call & we can help you manage your billing process in a more effective way. 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, National Creditors' Bar Association members have access to experienced law practice management consultants at a special discount rate.

To get started, visit Red Cave's NCBA landing page, and start running your law practice like a business.