AR backlogs can result from a variety of reasons and differences between law firms, but much of the blame can be attributed to the time and manual labor requirements of legacy billing processes.
If you are manually entering billing and billing data, you may have encountered a situation similar to this:
You may be reviewing your finances from month to month and notice that some of your largest customer bills are racking up on unpaid days. Go through your paperwork, try to compare documents, and follow the trail of paper bills.
Your search for a lost check in the mail, then you call your customer, but there is no answer. Days pass and you don't hear a word. The legal work continues and the missing funds remain missing. It's a vicious cycle that can quickly bypass anyone.
Tips for avoiding unusual augmented reality
Although there is no general rule for how to manage your billing process, there are several strategies that can help you solve these problems and reduce accounts receivable.
1. Develop a clear policy during the introductory meetings
To streamline the groups in your application, you should set the tone at the beginning of your introductory meetings. Manage expectations and request payment information up front by establishing a clear policy at the time of customer acquisition.
2. Sending invoices electronically
When you securely store your customers' billing information, you can send invoices electronically and quickly to prevent physical invoices from getting lost in the mail. The easiest way to downgrade is for the convenience of customers. With billing information at your fingertips, you can automatically bill when necessary.
To eliminate the chance of customers re-invoicing, you should send an electronic invoice as soon as the job is complete so that customers can see the breakdown of your service while it is still new in their remembrance.
3. Allow payments by credit card, eCheck, or ACH
Over 59% of lawyers report that they regularly deal with late payments. Consider implementing modern and digitized payment methods to avoid dealing with another late payment. Today's customers expect and prefer a modern way to pay their bills. By implementing these new payment methods, you can not only collect payments faster and lower your AR but also increase your customers' satisfaction by providing a seamless checkout experience.
Automate processes in your law enforcement department
It is not difficult to cut augmented reality when automating the billing process in the Attorney Management System.
Use invoice templates and bulk freight bills
Using invoice templates for common occasions can greatly reduce manual labor and increase employee productivity. All in all, you can instantly create a custom invoice for each customer from the saved invoice templates, which makes the process more efficient. You can also consider sending invoices to your customers in bulk to save time.
Automate payment reminders
Another strategy for cutting down on AR is to set up push reminder emails or notifications for your customers. Life happens, from time to time a customer accidentally forgets to pay a bill. To combat this forgetfulness, use a reliable legal practice management system that will help you create automated reminder sequences to ensure your clients are always kept informed.
Provide multiple ways to earn money
In addition to offering more modern payment methods, it is equally important to provide more channels for your customers to pay you. This can include creating a unique custom link and placing it on invoices, email signatures, websites, or even any customer portal you may be using. Payments can be sent faster when the customer has easy access to the link.
Downgrading an AR is not as hard as you think
Using online payments in the legal field may sound a little "unconventional", but it's quickly becoming standard operating procedure. Late or unpaid payments in 2022 shouldn't cause attorneys to stress or even risk losing revenue. The reduction of AR will not happen overnight, but it is certainly achievable if the right programs and strategies are implemented.
Online payments can help you streamline your checkout process, increase immediate cash flow, increase customer satisfaction, and yes, lower AR in the end.