Client Billing/Collections/COMMUNICATION

My Firm is bringing in a new bookkeeper next week so that’s had me looking at some our Firm’s policies on some of the topics above. This was an interesting post on law firm billing from a couple years back. Here’s our policy in a nutshell:

–This is the first priority each month and should be completed between the last weekday of the month and the 7^th of the following month (the earlier the better depending on your schedule). Other than entering my billing/time as legal work is completed I really would like to not be involved with client billing/collections.

–Currently, our bills are dated the last day of the Month and should cover the time range from the first to the last day of each month. A credit card payment form and self-addressed stamped envelope should be included with each client bill. Also, I want to aggressively market our services with billing each month through including coupons, articles, pamphlets about other services, ect. I want to educate clients about the full breadth of our services and encourage them to pass on a pamphlet or article or coupon to their friends.

–Clients are expected to pay their bills in full each month. Some don’t and generally if there’s consistent payment of some amount that’s acceptable. Anyone who does not make a monthly payment should be called to follow-up on their payment after 30 days (the next month)…be flexible if you speak with them, can they pay half? Can they pay $100/$50? If possible get a credit card number immediately. At 60 days with no payment or no communication, I have two form letters one of which should be sent to client depending on whether it’s a former client or if it’s someone with an active court case (see ‘Forms’ – ‘Letters’ folder). Again, follow-up by telephone/e-mail at 60 days unpaid. Discuss with PRO if client gets to 90 days without any payments made.

Action points:

–Be creative with advertising ideas included with monthly billing.

–Find out how to do Website/e-mail credit card transactions.

–Suggest any/all improvements.

Don’t know if that’s helpful but knock on wood we haven’t had too much difficulty with client payment problems. If and when we do quite honestly invariably the fault lies with a too small retainer that was taken up front.

Don’t view “client billing” too narrowly…it’s a wonderful opportunity to communicate with your clients and market your firm broadly.