Law firms – How to get paid faster
Getting paid on time is one of the biggest challenges currently faced by law firms. It’s been reported that up to 55% of law firms don’t have enough cash to cover one month’s operating costs.
In the current climate, firms experiencing cash flow pressures are likely to struggle with rising inflation and bills.
What can you do to protect your firm and get paid faster?
Let’s look at some options you can use to get those invoices paid on time.
Be clear on your payment policy
Good communication with your clients is essential to getting your invoices paid on time.
Set out expectations and provide a clear picture.
How much will your services cost?
How and when do you expect to be paid?
What happens in the event of late payments?
It might sound obvious, but things can get lost in translation. Sometimes the only reason for an invoice being paid late is due to lack of communication.
Send invoices on time
If you want your clients to pay you on time, you need to make sure you’re staying on top of sending invoices out.
It’s not uncommon for work to be invoiced months after a matter is closed. Making sure you get your invoices delivered on time is completely within your control, and you’re likely to reduce the time you’re waiting for payment by doing so.
Allow for some flexibility
We’re all feeling the pinch. Your clients are likely to be dealing with similar challenges to you when it comes to cash flow and getting money in the bank. In fact, we’re in the middle of a late payment crisis that’s affecting more than 400,000 small businesses in the UK.
If you can offer flexibility by creating payment plans, it’s easier for your clients to pay larger legal bills, and you’re more likely to avoid write-offs.
Make it easy for clients to pay
Over the last decade, the payments industry has completely changed. The natural evolution of payments has been accelerated by the pandemic. If you’re not offering payment methods that suit your clients, you may be making it more difficult for them to pay you on time.
This is when your firm needs to remember that ‘it’s how we’ve always done it’ can lead to huge problems. Some of the payment options you could look at include:
- Debit and credit card payments
- Bank transfers
- Payment apps (Paypal, Google Pay, etc)
The bottom line is, the easier you make it for your clients to pay, the more likely they are to pay quickly.
Is it time to outsource your legal cashiering?
If you’re struggling with getting invoices out on time and your firm is losing track of the vital information it needs to operate profitably, it could be time to outsource your legal cashiering.
At Numero, we provide you with all the benefits of an in-house professional but without the time-consuming management. Talk to us today.
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