Should my law firm outsource our legal billing?
Billing is an essential task for law firms, but doing it can take up valuable time. Studies show lawyers can spend up to an hour a day processing client payments and preparing and sending invoices[1]. To maximize billable hours, it can make sense to outsource legal billing. However, for some firms it may make sense to hire someone to handle … Read More
Can my law firm pass on charges for payment fees to my client?
Accepting credit cards is a benefit to both your clients and your cash flow, providing an easy way to quickly take payment for invoices without requiring available funds or a mailed check. However, accepting credit cards comes with a service charge, usually ranging from 2-5%. For lawyers who are trying to maximize their profits, the question arises of whether or … Read More
How should our firm pay credit card merchant fees?
When accepting credit card payments from clients, fees should be paid out of the firm’s operating account and never from the client trust account or taken out of funds being deposited into a trust account. Traditional merchants pull the processing fees from the account the funds were deposited to. If your firm will be accepting retainer payments where the funds … Read More
How can my law firm avoid bad debt?
Bad debt can take up a significant portion of a firm’s income. While it can be challenging to avoid bad debt entirely, law firms can minimize its likelihood by doing the following: Be upfront with pricing Make sure from the start that your client is aware of what the payment amounts will be. If you have a flat-fee structure, lay … Read More
How should I set my hourly rate as a lawyer?
Setting your rates is a combination of multiple factors including[1]: Geography Experience Firm size Specialization/type of case Reputation Look at what others in your area are charging, and assess the type of setting you’re in. Rates in large cities will be larger than those in suburban or rural areas. See what others nearby are charging to get an idea of … Read More
Is a contingent fee tracked as Accounts Receivable?
Law firms track accounts receivable (A/R), the amounts that clients owe a law firm for services rendered, by generating an invoice showing the amount due during a given time period. When a law firm, however, agrees to accept a contingent fee as compensation for services rendered, the client doesn’t owe anything to the firm until the attorneys secure a recovery … Read More