Change the Narrative: Your Invoices Probably Need Better Billing Descriptions

Every interaction a law firm has with a client is a marketing opportunity, a chance to cement your value as a service provider  And, there’s actually no better place to solidify that relationship than through your invoicing.  It’s a continuous, repetitive option for reminding your client of what you’ve done for them.  It places your value proposition in stark relief. 

 


And, yet – many law firms squander this opportunity by using unrecognizable codes and short-form narratives in their billing.  Instead of trying to rush your bills out the door, craft them instead.  Utilize billing codes that even clients can understand; and, avoid lame abbreviations (looking at you, ‘TC’).  Build effective descriptions for each billed item – using macros or software that can help you to draft those quicker.  Indicate where you haven’t billed, by placing a nice, fat ‘NO CHARGE’ indicator on that entry. 

 

This is the short list; but, if you start to look at your invoice standing in the shoes of your clients, you’ll get a better sense of whether and to what extent your billing platform works – and, you can better align your service provision with your clients’ expectations.  And, if you can do that, you’ll likely make more money, and increase your clients’ happiness, to boot. 

 

All good things. 

 

. . . 

 

If your billing program needs a little work, reach out to us. 

Through a unique partnership between the Maine Board of Overseers of the Bar and Jared Correia’s Red Cave Law Firm Consulting, Maine attorneys have access to experienced law practice management consultants at a special discounted rate. 

To get started, visit Red Cave’s landing page for Maine attorneys, and start running your law practice like a business.

Comments

Post a Comment

Popular posts from this blog

Perfect Timing: New Calendaring Tools Make It Easy to Connect with Leads and Clients

Image
Lawyers tend to be inefficient, and have difficulty engaging both leads and clients.  These hurdles are apparent when it comes to the scheduling process.  Attorneys and staff onboard leads for meetings, and schedule appointments with existing clients, via strings of emails -- and, delayed response s only extend the conversation, and the time frame.  And, while this is detrimental for client s (who demand speed and convenience), it’s even worse for leads, who may never convert, if they’re not onboarded simply, and easily.   The good news is that modern technology tools allow for scheduling without the intervention of humans, including you and your staff.  That means that you can say goodbye to all those extra emails, and wasted time.  Programs like Calendly and Acuity allow clients to book appointments directly onto a law firm or lawyer’s calendar, and include buffers and controls, so users aren’t overwhelmed.  LawTap offers a similar tool focu...
Read more

Get That Bag: How to Build a Collection Process for Your Law Firm

Image
Law firm account s receivable can be gnarly, sometimes extending into the six figures .     Now, there are a couple of responses to that .  The preferred option is to eliminate accounts receivable altogether, which can be done using epayment options, and potentially evergreen retainers combined with stop work order s .   Of course, you may not ever get to 100% collection rates – that’s a tall order – and, you may have some accounts receivable to deal with already .  And so, you’ll need to establish a collection process – and, that should flow from your engagement agreement.     The components relating to money that you need in your engagement agreement, aside from your rate(s) and/or basis of your rates, would be: An escalating series of penalties for non-payment .  An arbitration clause, potentially including access to a state bar’s fee arbitration board .  That stop work order .  This will allow you to put pressure on non-pay...
Read more

Pay It Forward: How to Incentivize Attorneys and Staff Beyond Salary

Image
Many law firm owners are comfortable just paying out a salary .  And, that can work, for sure .  But, if you want to drive revenue within your law firm, it makes sense to look at bonusing attorneys and staff in ways that will incentivize your employees to generate or close more cases for the firm, which will lead to additional revenue. Obviously, this is a bit easier for attorney staff, since lawyers can share fees with each other, which makes it easier to create a direct incentive plan .  But, for staff , you can bonus them without sharing fees, including for converting clients from leads, for example, by doing things like offering a $50 bonus for each lead closed, potentially in a certain time frame .   This is the same method that lead generation services use to get paid by law firms, without sharing fees.     But, the place that law firm owners can really make money here is by using origination fees to bonus their attorney staff .  Law firms ...
Read more