Are You Building Invoices Or Building Relationships?

by PracticeLeague

It's a known fact that to retain and maintain long-term happy clients, it is important to give consideration to customer relationship management. An aspect that makes client retention difficult is invoicing and billing, as often times there's a disparity in what the client expects to pay and what the amount to be paid is.

To ensure that billing clients doesn't get in the way of retaining them, create a process that is transparent and reduces disparity. Here's how -

Find a good system for billing

Every law firm has their own billing and invoicing processes, but without a standardized process for calculating time spent on matters, there's bound to be confusion at the client's end. Find a process that is simple, easy to implement and provides an accurate estimation for every invoice you send to the client. Ensure that everything in the invoice is clearly stated, as that will give a better idea of what they are paying for and will in turn lead to lesser objections from clients. A Practice Management system can collate all activities in an invoice almost instantaneously. You can even review and amend the invoice at the drafting stage to rectify any human errors.

Explain what you are billing your clients for

Most times, there is an objection from the client's side regarding an invoice simply because they didn't understand what they are paying for. The invoice sent to the clients should be self-explanatory and shouldn't need your client to figure out the charges. Finding the right balance of detail for the invoice is important to create trust between the lawyer and client and maintain a long professional relationship.

Get paid up front

Many clients are happier getting an approximate payable amount up front at the beginning of the matter, as that sets an expectation for the approximate amount they will be spending. Since the final amount doesn't come as a surprise to them, there isn't any objection or disparity in expectation, leading to a smoother and easier billing process. Hence, always request for a good portion of payment in advance and record this information in the Practice Management system to track the utilization and the work done against the amount received.

PracticeLeague's Law Firm Solutions offer a comprehensive Practice Management software for lawyers that makes invoicing and billing a standardized process that is simpler and accurate every time.

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