A nugget from Rjon Robbins over at How to make it rain:
Over & over & over again we see that by establishing some basic routines in small law firms that clients can count on, the volume of repeat and referral business increases and accounts receivables tend to decrease too. Even getting into the habit of sending out a bill each month like clockwork creates a level of predictability that comforts clients. You wouldn’t think it works this way – clients feeling more comforted by receiving a bill – but it does, even in contingency firms that don’t traditionally issue a fee statement until the end of a case.
I am amazed at the number of small law firms that do NOT send out monthly bills. It leaves me speechles to think of the lost communication opportunity and income opportunity that not sending your client a monthly bill causes. The only clients to whom we do not send monthly bills are residential real estate transaction clients…we’ll either get paid at a closing or bill them post-closing.
February 20, 2007
Thanks Peter for helping to spread the good word! You hit the money with your point about using bills as an “opportunity” to communicate with clients.
Bills should communicate value, not just tell the client what they owe. Put yourself in the client’s shoes and think about what it says – or better yet, what it COULD say – to get a bill that reads like a short summary explaining what was done, why it was done and what the benefit was to the person who you’re asking to take money out of his or her pocket and give you to you.
Remember, there’s a hierarchy of vendors who get paid first, and lawyers are low on the list.
I’d also encourage anyone reading this who has any kind of A/R problems to check out a FREE training program I’ve created entitled A Simple System For Managing A Trust Account That Won’t Make You Feel Like A Schmuck. That way you can learn how to use your trust account as the financial management tool it was intended to be and eliminate A/R problems. And also, a great web site I’ve contributed some content on the subject to over at Lawyer Billing Tips
Respectfully,
RJON ROBINS
http://www.HowToMakeItRain.com
Hellping Lawyers In Small Firms Make ALOT More Money