For a law firm, retainers can be the lifeblood needed to stay afloat. It allows firms to maintain a positive cash flow and ensures that client invoices are paid in a timely manner.
While retainers can be extremely beneficial for firms, if they aren’t properly managed they can bring a great deal of trouble to your firm too. With extremely strict regulations related to legal retainers, a few missteps could result in steep penalties for your firm. For that reason, how your firm manages its retainers is an extremely important component of managing the firm.
Retainer Management Tips For Law Firms
Here are some retainer management tips that will help your firm not only remain compliant with the myriad of regulations associated with legal retainers but will also help you to manage a more efficient law firm.
- Tie all of your retainers to the legal matters they are associated with. CosmoLex does this for your firm by integrating retainer management with a matter-based billing model.
- Implement a set of retainer notifications. If your clients aren’t paying you it will become extremely difficult to continue operating your firm. CosmoLex allows you to monitor retainers that are overdue and even easily send low-retainer reminders to clients whose balances are low.
- Use flexible retainer management solutions. Law firms are subject to the regulations set in their state. You would be hard pressed to find legal software solutions that are specific to your state’s laws. Make sure that your firm utilizes a retainer management solution that is flexible and can be adapted to
- Have trust retainer safeguards in place. Trust accounting can be extremely difficult to manage for your firm with all of the regulations in place. CosmoLex ensures that ledger overdrafts and the commingling of client accounts and retainers are nearly impossible by putting safeguards in place.
Retainers are almost necessary to run a successful firm. At the same time, it’s understandable that retainer management can be intimidating. CosmoLex can remove the intimidation from retainer management. You can see for yourself by trying it for free..