The ABA and state bar associations decided decades ago that it is ethical for attorneys to accept credit card payments from clients. Best law firm administrative practices when accepting credit card payments are as follows: Obtain written consent from clients to disclose limited confidential information to credit card companies in order to accept credit card payments.[2] When submitting a request … Read More
Can general accounting program like QuickBooks apply complex rate structures and non-traditional fee arrangements to invoices?
Most general accounting and billing programs do not have the ability to apply complex rate structures and non-traditional fee arrangements when creating invoices. Quickbooks, for example, will allow your law firm to set up different billing rates for each employee or for specific matters or tasks, but only in the Professional or Accountant versions of the software. In the lower … Read More
Can I use a general accounting program like QuickBooks for timekeeping?
Many general accounting programs like QuickBooks allow companies to track the time each attorney spends billable activities for a given client.[1][2][3] You can then use the time entries to generate an invoice.[5][6][7][8] References 1. Time Tracking Invoices in QuickBooks 2. Tracking Time in QuickBooks 3. Accounting Software just for Law Firms 4. How to Include Billable Time on an Invoice … Read More
Can I use a general account program like Quickbooks to bill legal clients?
Even though general accounting programs such as Quickbooks were not specifically designed for legal billing, law firms can still use these programs to create legal bills that show the date, time spent, a description of services, the rate per hour, and calculate the total amount charged for each entry.[1] Some of the more sophisticated desktop accounting programs even allow employees … Read More
Can I email invoices to legal clients?
Since legal invoices are communications between lawyers and clients that may reveal an attorney’s strategy or legal advice, some states consider them to be privileged. [1][2][3] Therefore, law firms should check with their state bar association to determine what they need to do when emailing privileged information to clients, as those requirements could apply to emailed invoices as well. Most billing … Read More
Do I need to track my time if I charge my legal clients a flat fee?
Flat fee arrangements occur when law firms provide specific services to a client for a one-time fee, no matter how many hours the attorneys spend on those services. Many law firms attempt to streamline their law firm practice management by moving to fixed fee billing. The idea is the less time that attorneys and staff spend tracking their time or … Read More
What is the difference between a hard cost and a soft cost for a law firm?
A hard cost, also known as a direct cost, is one that is paid directly to a vendor on behalf of a client for services provided in association with a specific client matter. Hard costs typically include court reporter fees, filing fees, mediation fees, hearing transcript fees, etc. Good law firm practice management, through the use of a legal industry-specific … Read More
Do I need to track my time for a contingent fee case?
Contingent fee arrangements occur when a law firm provides services to a client in exchange for a percentage of future recovery in the matter. Because the law firm doesn’t collect a fee unless the client receives a recovery, and because the fee collected is a percentage of the total recovery, law firms generally do not send out monthly invoices to … Read More
How do I track clients with overdue balances?
In a recent poll, small and solo attorneys named billing and collection matters as among the top three challenges in running a law firm. [1] Reports tracking clients with overdue balances, such as the aging accounts receivable report, are the starting point of all collection activities. [2] These reports allow law firms to print a list of past-due invoices for each client … Read More
What are effective collection methods for law firms?
A “cash-flow crisis resulting from inadequate [Accounts Receivable (AR)] collection practices in a growing business is generally the greatest threat [a] business will ever face.”[1] Small law firms and solo practitioners are especially susceptible to having inadequate AR collection practices because they often do not have a dedicated billing staff, and attorneys do not have the time available or the … Read More