How Your Firm Can Benefit from Automating A/R

person paying a credit card online

You might hesitate to make major changes at your firm for any number of reasons. Not only do you have to choose new billing software, but your team also must learn it and fully transition into new processes. There’s nothing easy or simple about navigating change management. But you’re staring down a considerable payoff—you could turn your firm’s weaknesses into strengths.

Benefits of automating your firm’s accounts receivables

Below are the primary benefits of investing in an automated payments solution.

Streamline Your Workflow

Billing is a thankless process. There are many steps to creating accurate invoices for your clients, getting them out on time, and chasing after payments. While automation can’t do everything, it takes a lot off your staff members’ plates, such as tracking due dates, reviewing A/R aging reports, and sending out reminders. Your staff also has a much easier time following your billing processes to a T because of automated workflows, internal reminders, and a central interface. 

Work from Anywhere

No more being chained to a desk. Your lawyers and staff can bill their time, review invoices, and respond to client communications from anywhere when relying on a cloud-based platform. 

Receive More Payments on Time

The goal of consistent and user-friendly billing processes is to get paid, of course. By relying on software that delivers invoices to clients’ inboxes, automatically sends reminders at custom intervals, and offers one-click payment options, your clients have a better experience and are more likely to pay on time. 

Process Payments Faster

Client payments aren’t automatic. But e-payments through a trusted solution will reach your account faster than dealing with banks processing cash or paper checks at a snail’s pace. 

Improve & Predict Your Cash Flow

When your clients are more likely to pay you in full and on time, your firm has a more consistent cash flow. Over time, you can use your billing solution’s reporting functions to track your cash flow carefully. Better yet, forecasting your cash flow can help your firm prepare for lean times or, on a more optimistic note, prepare for upgrades and reinvestment. 

Identify Delinquent Clients

You might not say it out loud, but not every client is a great client. By working with an automated billing solution, you’re able to track which clients consistently pay late or dispute their bill. This insight can help you decide which clients would benefit from additional encouragement or when it’s time to part ways. 

Get Strategic

When your staff doesn’t have to deal with time-consuming manual tasks, they can perform more high-value work, in-depth analysis and strategize to increase efficiency. 

Boost Client Satisfaction

Clients are happiest when you send clear invoices consistently and offer various payment options. No one wants to write a check these days or call your firm to provide payment details. If you make it easy and safe for clients to pay you digitally, they will seize the opportunity. 

Scale Your Firm

If you hope to bring in more attorneys, clients, and staff to your firm in the coming years, then the time to prepare is now, not once they arrive. A more efficient billing process and improved cash flow visibility give you a solid foundation for growth. 

Choosing the right billing solution for your firm

In searching for the best billing solution some firms follow in the spirit of Einstein’s notion that “Everything should be made as simple as possible – mistakenly trying to solve their challenge with a single tool for that single problem.  

One option is to look for a standalone billing solution you can integrate with your current technology. Various legal billing software will work with a separate time-tracking system and accounting software like QuickBooks, thus cobbling together several single solutions. Consider investing in an integrated billing and practice management solution.

CARET Legal is one such possibility. You can choose the practice management solution that best fits your firm and has a built-in payment processing service to improve your DSO and please your clients. 

With CARET Legal, you can:

  • Work anywhere thanks to the cloud
  • Easily track billable time with a mobile app
  • Process credit cards, ACH transactions, or e-checks quickly
  • Appropriately handle payments from trust and operating accounts
  • Generate reports on specific clients or matters
  • Generate cash flow, balance sheet, productivity, profit and loss, and other reports

A comprehensive platform like CARET Legal can improve your firm’s overall efficiency and productivity instead of focusing on finances alone. Your team will be able to track billable time in real-time (a common culprit of leakage), invoice clients via email, and process e-payments all in one place. 

Are you ready to get paid?

When it comes to law firm finances, you can’t focus solely on hourly rates or alternative fee arrangements. It’s time to take a more holistic approach and, equally important, exceed client expectations. Your revenue and growth capabilities depend on it. 

An integrated billing and practice management solution is the ideal weapon to conquer your challenging A/R processes and delinquent payments. You’ll gain a better understanding of your firm’s finances, including cash flow predictions. Then, you can leverage your newfound knowledge to invest in your firm, whether that involves adopting new technology, boosting new business, or hiring more associates. 

Are you ready to supercharge your payments and cash flow? The time is now.

Sources

  1. https://www.fiserv.com/content/dam/fiserv-com/resources/BillerSolutions_EighthAnnualBillingHouseholdStudy_ThoughtLeadership_0316.pdf
  2. https://www.pymnts.com/study/study-b2b-payments-innovation-accounts-receivable-automation-collections-dso/
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