Productivity Multipliers: Billing And Trust Accounting
This is the second in our four part series on productivity multipliers. Last time we went over the concept of a multiplier. Today we are going to show you how efficient billing, collections and trust management help your practice. We will also show how they support and enhance each other when they work together through an integrated law firm billing software solution.
Productivity Multiplier #1: Efficient Billing And Collection
You’re a mercenary. We all are. Even if you love your job, you still need to generate revenue to survive. However you aren’t a bookkeeper or a collections agent, and you shouldn’t have to waste your time as either. An efficient billing system streamlines and automates the invoicing process so you can produce clean, comprehensive statements that get paid promptly. You can see your entire practice’s financial status, matter by matter, on a single screen so you know which clients are paid up and which ones need a little nudge. You can send billing, late payment reminders and low retainer requests in bulk with the click of a mouse.
Productivity Multiplier #2: Integrated Trust Accounting
Do you collect security retainers or distribute court settlements or handle real estate transactions? These are three of the most common situations law offices face in trust accounting. These monies are not yours and should be kept in an IOLTA account rather than your operating account. Even your retainers cannot be spent until you have earned them. Robust trust accounting software allows you to keep all your trust monies in a single bank account without accidentally intermingling funds. If your accounts get audited, you can provide a document trail that will satisfy the most stringent investigator.
How These Multipliers Work Together
Having either an efficient billing system or a bulletproof trust management system will allow you to spend less time as a bookkeeper and more time as a lawyer, while improving cash flow and reducing the danger of ethics violations. However, when they work together, each system functions more efficiently. When your billing system can look at the trust management system and see that there is a retainer balance, you can transfer money from your IOLTA to your operating fund and reflect the new retainer balance on the client invoice. This communication means the two systems function as one, rather than you having to try to synchronize separate billing and trust management applications.
CosmoLex law office management software integrates billing and trust management seamlessly for easy handling of your law firm’s finances. Future installments of this blog will look at the other six productivity multipliers and how they work together to benefit your practice. Keep reading.