Six Ways to Improve Law Firm Profitability with Faster Payments

In the competitive legal sector, maintaining and enhancing law firm profitability is crucial. A key aspect of this is ensuring swift payment from clients. Timely payments not only ensure fair compensation for attorneys and staff but also significantly contribute to the overall financial health and growth potential of a law firm.

When fees and invoices go uncollected and realization rates drop, it pumps the breaks on profitability, cash flow, and growth goals. But payment lags aren’t always the fault of the client. Inefficient workflows, poor communication, and inconvenient client processes all contribute to delays in payments. However, there are a number of simple steps law firms can take to get paid faster.

Law firms often wait weeks or even months to be paid after an invoice is sent, but there are ways you can take control over your payment timelines and improve your firm’s profitability. Here’s where you can start.

Developing and communicating payment policies

To solidify the foundation of your law firm’s profitability, it’s essential to focus on establishing and enforcing robust payment policies. This not only streamlines your billing processes but also sets clear expectations for your clients, contributing to a more predictable and efficient payment cycle. The following steps will guide you through the process of creating transparent payment terms and conditions and the importance of communicating these effectively both within your firm and to your clients. By doing so, you can improve cash flow management and take a significant step toward enhancing your law firm’s profitability.

1. Establish clear payment terms and conditions

It’s a best practice to set clear payment terms and conditions before signing on a client or completing billable hours. Clear payment policies don’t just provide you with legal protection if a client disputes charges. They also establish expectations for how the payment process should unfold and define obligations for you and your client.

These expectations are vital for building trust between you and your client. When clients understand their obligations, they can:

  • Budget for legal expenses more effectively
  • Understand their payment options
  • Inquire about alternate arrangements for fees
  • Avoid late fees
  • Clear up questions before they become an issue

They can only do this if your payment policies are transparent, though. If your payment policies are long and packed full of legalese, your clients are less likely to follow them.

2. Share payment terms and conditions internally and externally

Once you’ve developed payment terms and conditions, your clients and your staff should be fully aware of them. For clients, this is something that should be addressed during the client intake process, ideally before signing any contracts or agreements. To ensure full transparency, consider including your payment policies on invoices.

Your team should also be looped into payment terms and conditions so they can answer questions confidently. In addition to training staff, it can also be helpful to add this information to any internal knowledge base you may have.

Better invoicing practices

A key element in enhancing law firm profitability lies in optimizing your invoicing practices. Efficient and clear invoicing not only facilitates quicker payments but also reinforces the professionalism and credibility of your firm. The upcoming steps will delve into how you can create user-friendly invoices that promote transparency and ease for your clients. By focusing on timely, detailed, and well-structured invoicing, you can significantly reduce payment delays and misunderstandings, thereby improving your cash flow and overall profitability.

3. Create user-friendly invoices

Invoices are the unsung hero of law firm profitability. They may seem like a simple document that tells what a client owes, but they are much more than that.

A good invoice helps your client render payment with confidence that you have completed legal work in accordance with your contract. When you omit necessary details, however, such as details of work completed or precise due dates, you can damage client trust and increase the risk of compliance violations.

This is where using legal invoicing software can be of great help, providing guardrails that ensure your invoices include critical information like:

  • Name and contact information of the lawyer or law firm that is sending the bill
  • Client’s name
  • Description of the legal services offered
  • Date the services were rendered
  • Trust account balance (if relevant)
  • Date of last payment (if relevant)
  • Total cost of services rendered
  • Terms of payment (e.g. due upon receipt, net 30, etc.)
  • Date the invoice is sent out
  • Any sales tax or other fees that are due
  • A link to submit electronic payment

Make sure to include your logo, brand fonts, and colors on your invoice. A professionally designed invoice template enhances brand recognition and adds to your law firm’s credibility.

4. Send invoices out on time

When your invoices are sent late or inconsistently, your clients may think that the same rules apply to their payments (even if your payment policies are clear). As a result, they will be less likely to take their payment obligations to your firm seriously.

When you send invoices out in a timely and consistent manner, you give your clients the opportunity to budget for legal services, review their legal fees, and ask questions if necessary. This demonstrates that you’re committed to client service.

Offer client-friendly payment options

Even if you serve limited practice areas, your clients have a range of payment needs. One client may need support with setting up a payment plan, for example, while another client may want to schedule withdrawals. Providing client-friendly payment options can make it easier for clients to settle their invoices and for your practice to maintain a strong cash flow.

Consider the options below:

5. Provide online payment options

Paying with cash or check is becoming less and less common. Clients expect to be able to pay for services with debit and credit cards, no matter the industry. In fact, some younger clients may not even use checkbooks.

However, the legal industry has historically been slow to embrace credit cards. Law firms have been particularly cautious about the implications for trust accounting compliance and credit card usage.

Law firms can mitigate compliance risks while still meeting client expectations by working with a legal-specific payment processor that’s embedded in their practice management system, like Tabs3Pay. Not only does this streamline the billing process (saving you lots of billable hours every month), it can provide clients the choice to pay by:

  • Credit card
  • Debit card
  • ACH bank transfer
  • Scheduled payments

Electronic payment options speed payment up for several reasons. To start, they are more convenient for clients. After all, it takes less time to click on a link in an email and pay via credit card than it does to hunt down a checkbook.

Funds also reach your bank account faster. When clients pay via credit card, payment can be accessed in as little as 24 hours, depending on your payment processor.

6. Allow for different types of fee agreements

Fee-based billing is a legal industry stand-by, but it’s not the only option out there. What’s more, it may not necessarily be the best option for your practice. Depending on which practice areas you serve, you may find that clients can pay faster and easier if you implement different fee agreements, such as flat fees, retainers, or contingency fees.

If you determine that a different fee structure is the right fit for your law firm, avoid surprises with your clients. Update your payment policies and communicate changes to your clients immediately to avoid confusion, payment delays, or write-offs.

Improve your law firm’s profitability with Tabs3 Software

Tabs3’s suite of client and law firm-friendly payment tools offers a fully integrated suite of billing, accounting, and practice management tools designed to help law firms run more efficiently and profitably.

Tabs3 Software offers:

  • Compliant online credit card payment processing with Tabs3Pay
  • Calendars and matter organization tools
  • Easy-to-use time-tracking functionalities
  • Conflict of interest searches
  • Client relationship management tools
  • Cloud and mobile access
  • And more

To see how Tabs3 can help your law firm implement better billing and accounting practices, schedule a walkthrough demo or sign up for a free trial today.

Law Firm Billing Procedures: 10 Best Practices to Follow

An unwieldy billing process can eat into one of a law firm’s most valuable assets: time. Attorneys know this, but changing office workflows requires planning and is best accomplished through manageable steps.

As a leader in legal practice management software, Tabs3 understands the importance of optimizing law firm billing procedures to create a streamlined experience for attorneys and their clients. In this guide, we dive into strategies to enhance your law firm’s billing process, ensuring both effectiveness and client satisfaction.

1. Track your time

The precision of time tracking directly influences the accuracy and fairness of billing. It’s not just about recording time; it’s about understanding the value of each minute spent on a client’s case. If you track your time, it’s easier to estimate how long tasks take, determine effective billing rates, and evaluate profitability. Firms should foster a culture where consistent time tracking is the norm. Attorneys and support staff should be trained to capture every billable moment as this accuracy benefits both the firm and the client.

Technology is a powerful ally for effective time tracking. Implementing intuitive time-tracking software that integrates seamlessly into daily workflows can dramatically improve accuracy and reduce the burden of manual entry. Tools like those offered by Tabs3 are designed with the legal professional in mind, offering features that simplify the time-tracking process.

To improve timekeeping habits, start with a month. Commit to thirty days and make it a daily practice. Consistency is your friend.

2. Get tech to work for you

The integration of technology in law firm billing procedures is a transformational move. The right technology can automate repetitive tasks, reduce errors, and provide valuable insights into the billing process. For instance, the Tabs3 practice management software, PracticeMaster, has toolbar plug-ins for the programs you use every day, making timekeeping less of a chore.

Those who work on the go can also get mobile access with Tabs3 Connect. With Tabs3 Connect, time tracking, accessing client information, and managing billing tasks can be done effortlessly on smartphones or tablets. This mobile access not only enhances convenience but also ensures that billable time and expenses are captured promptly and accurately, reducing the risk of lost revenue due to forgotten or unrecorded activities.

Additionally, Tabs3 Cloud extends the capabilities of traditional billing software by offering the flexibility of cloud-based access. This means that all the functionalities of Tabs3’s billing software are available to users wherever they have an internet connection. This is particularly beneficial for firms with multiple locations or for those who have embraced a hybrid working model.

3. Make tasks easier with legal billing software

The choice of billing software can make a significant difference in how a law firm operates. Tabs3’s legal billing software is more than just a tool for tracking hours and expenses; it’s a comprehensive system that can transform the entire billing cycle. From capturing billable hours to generating detailed invoices, the right software can streamline every aspect of the billing process.

4. Pre-bill review as if it’s you

When you’re reviewing pre-bills, ask yourself, “Would I pay this bill?”

Pre-bill review is about more than simply glancing at an invoice before it’s sent out. It’s a critical quality control step that ensures accuracy, fairness, and transparency in billing. The process involves a detailed review of the billable items, ensuring they accurately reflect the work done and are communicated in a manner that is clear and understandable to the client. It’s an opportunity to catch and correct any inaccuracies, whether they are in time entries, expense allocations, or descriptive narratives.

The pre-bill review process should also be seen as a client service opportunity. It’s a chance to demonstrate to clients the value they are receiving for their legal spend. This requires that bills are not only accurate but also detailed enough to give clients a clear understanding of the services provided. Firms should train their attorneys and billing staff on the nuances of crafting billing narratives that are both informative and client-friendly. This involves using language that is clear and devoid of legal jargon, making it easier for clients to understand what they are being billed for. This transparency not only builds trust but also reduces the likelihood of disputes over charges.

5. Plan billing into your schedule

A systematic billing schedule is vital for maintaining financial discipline within a law firm. This involves setting and adhering to regular intervals for preparing and sending out invoices. Such a schedule ensures that billing does not become an afterthought or a task that is only addressed sporadically. It also helps in managing the firm’s cash flow more effectively, as regular invoicing leads to more consistent revenue streams.

The benefits of a regular billing schedule extend beyond just financial management. It also reflects a firm’s professionalism and commitment to service. Clients appreciate regular and predictable billing, as it allows them to manage their own finances more effectively. Moreover, prompt and consistent billing can often lead to quicker payment turnaround times, as clients become accustomed to the firm’s billing rhythm.

6. Streamline your cash flow with timely billing

Cash flow management is a critical aspect of running a successful law firm. Unlike profit and loss, which reflects the overall financial health of the firm, cash flow focuses on the movement of money in and out of the business. Regular billing is key to maintaining a healthy cash flow, as it ensures that the firm has a steady stream of income to cover its expenses.

Understanding the nuances of cash flow is essential for law firm leaders. This includes recognizing the difference between revenue and cash in hand. For example, a firm may show a profit on paper due to accrued billings, but if those billings are not collected promptly, it could face cash flow issues. This is why effective accounts receivable management is so crucial, as it directly impacts the firm’s liquidity.

To enhance cash flow management, law firms should adopt practices such as regular financial reviews, timely follow-up on overdue accounts, and maintaining a reserve fund to cover short-term expenses. These practices not only ensure financial stability but also provide a buffer against unforeseen challenges, such as delayed payments or unexpected expenses.

7. Stay on top of collections

Accounts receivable management is a vital component of law firm billing best practices. It involves not just sending out invoices but also actively managing the collection of payments. A robust accounts receivable strategy begins with clear communication of payment terms right from the outset. This includes detailing these terms in engagement letters and client agreements and setting clear expectations for payment timelines.

Monitoring accounts receivable is an ongoing task. Law firms should regularly review their accounts receivable reports to identify any overdue accounts and take prompt action to address them. The key is to be proactive rather than reactive in managing receivables.

If you don’t currently have one, develop a consistent accounts-receivable program that includes:

  • Details on how you want customers to pay
  • Terms of payment in engagement letters
  • Running monthly accounts receivable reports
  • Acting on past-due collections immediately

8. Keep good clients

Successful law firms understand the importance of identifying and nurturing relationships with their most valuable clients. This involves conducting regular analyses to determine which clients are the most profitable and which ones may actually be costing the firm money.

Developing a client-focused strategy is key. This could include personalized service plans, regular check-ins, or tailored legal solutions that cater to the specific needs of top clients. It’s about building a partnership rather than just a provider-client relationship, one where the firm becomes an integral part of the client’s success.

Equally important is addressing relationships that are less profitable. This doesn’t necessarily mean terminating these relationships but rather reevaluating and possibly restructuring them. Sometimes, less profitable relationships can be improved through better management or more efficient service delivery. Other times, it may involve honest discussions with clients about expectations, billing structures, or the scope of work.

9. Make it easy for clients to pay

In the digital age, convenience is key, especially when it comes to payments. Law firms should strive to make the payment process as straightforward and flexible as possible for their clients. This means offering a variety of payment options, such as credit card payments, online transfers, and electronic invoices. By diversifying payment methods, firms cater to the preferences of a wider range of clients, increasing the likelihood of timely payments.

Although some firms are still wary of credit cards, the traditional reason not to use them, credit card fees, is worth the expense in collection cases to get paid and be done with it. Additional concerns, such as trust accounting compliance, can now be addressed by using a legal-specific merchant like Tabs3Pay.

10. Automate when possible

Automation in billing procedures can bring significant efficiencies to a law firm. By automating repetitive tasks such as data entry, invoice generation, and payment tracking, firms can reduce the time and resources spent on administrative tasks. This allows attorneys and staff to focus more on client service and other high-value activities.

However, implementing automation requires a thoughtful approach. It starts with identifying the processes that are easiest to automate and the tools that best fit the firm’s needs. For instance, automating invoice generation can save hours of manual work, but it requires setting up templates and rules that accurately reflect the firm’s billing practices.

Moreover, while automation can greatly enhance efficiency, it should not be seen as a replacement for human oversight. Regular reviews and audits of automated processes ensure they are functioning as intended and allow firms to make adjustments as needed. Finding a balance between automation and human input is key to maintaining the quality and integrity of the billing process.

Optimize your firm’s billing process with Tabs3

Implementing these strategies in your law firm’s billing procedures can lead to significant improvements in efficiency, client satisfaction, and overall financial health. Tabs3 offers specialized solutions tailored to the unique needs of law firms, ensuring that your billing practices are not only efficient but also align with the best practices in the industry.

To see firsthand how Tabs3 can improve your billing process, schedule a demo or request a free trial today.

Take Credit for Your Work When You Use Tabs3Pay

Lawyers spend their days prioritizing and juggling competing demands from clients, deadlines, and an assortment of unavoidable administrative tasks.

With so many critical to-dos on the docket every day, the last thing a lawyer needs is to have to chase down payment after their work is done.

Legal teams are all too familiar with the challenges associated with payments, yet many law firms still rely on traditional payment methods. Manually sending out invoices and then waiting for checks to come in can lead to decreased cash flow and frustration in client relationships. It also requires unnecessarily complicated workflows, adding more time to what should be a simple process of collecting payment.

However, there is a way to create ease, transparency, and rapid payments for client invoices. A legal software solution like Tabs3Pay can help you take credit for all the work you do and get your firm compensated without a hassle.

7 ways Tabs3Pay makes it easy to take credit for your work

In the legal world, time is of the essence. The faster you receive payment for your services, the better you can allocate resources and plan for the future.

With Tabs3Pay, you can easily accept credit card payments from your clients. This accelerates the payment process, eliminates manual errors, minimizes write-offs, and ensures PCI compliance.

In short, Tabs3 gives your firm an advantage at every stage of the billing process.

1.   Get paid faster

Because online payments are more convenient, clients are more likely to pay on time and in full when you offer this option.

With Tabs3Pay’s mobile-friendly options, your clients can pay any invoice upon receipt through an emailed link or from the Tabs3 Client Portal, no matter where they are. Clients can easily view their bills, make payments, and receive instant confirmation of their transactions, all from their mobile devices.

For clients on retainer or with other appropriate payment structures, automated payments can take the guesswork out of the client payment process. Schedule payments to process one time or on a specific day every month.

With automated payments, clients don’t have to spend time each month paying off invoices, and you can focus on your client’s case matters instead of their outstanding bills.

Nor will your clients have to run to the post office; you can request trust account replenishments directly from the Tabs3 Matter Manager and send them their secure payment link via email.

Finally, but most crucially, funds sent through Tabs3Pay are available in as little as 24 hours. That means when you “get paid,” you actually get paid.

2.   Automate payments to prevent manual error

Say goodbye to manual data entry and hello to a more efficient, error-free financial workflow.

Manual errors in payment processing can be costly and time-consuming. When errors occur, they not only disrupt your financial operations but also damage your firm’s reputation.

Tabs3Pay eliminates these manual errors thanks to a range of automated processes. From batch billing to automatically withdrawing processing fees from operating accounts, you can ensure payments are processed accurately and save your firm time that could be better spent serving clients.

3.   Manage collections and reduce write-offs

No one wants to chase down clients to collect outstanding payments. It’s tiresome, strains client relationships, and can lead to avoidable write-offs.

With Tabs3Pay, you can:

  • Proactively monitor the status of invoices
  • Create flexible payment schedules for clients with large outstanding balances
  • Send convenient reminders to clients with approaching due dates
  • Accept a broad range of credit cards, including Visa®, MasterCard®, Discover®, American Express®, Diner’s Club®, and JCB credit cards, as well as Visa and MasterCard debit cards

4.   Reduce processing fees

High or unpredictable processing fees have historically been a barrier to accepting credit card payments for law firms. Tabs3Pay helps mitigate this issue by offering:

  • Zero initial setup fees
  • Transparent and predictable pass-through fees
  • Optional client surcharging

5.   Secure and PCI-compliant transactions guaranteed

Security is essential when it comes to handling financial transactions, especially in the legal industry, where client confidentiality is paramount. Tabs3Pay is designed to ensure PCI compliance, meaning that all payment information is handled securely and in accordance with industry standards.

Your clients can trust that their financial data is safe, and you can rest easy knowing that you are in compliance with legal and regulatory requirements.

6.   More accurate financial reporting

Running a healthy practice requires comprehensive insight into your firm’s financial data. To achieve that, you need access to robust reporting software. 

Tabs3Pay is fully integrated with Tabs3 Billing, providing firms access to customizable financial reports. With Tabs3 Billing’s dashboards, you can use graphs to quickly assess Accounts Receivable, Work-in-Process, Cash Receipts, and Billing History historical data.

Use detailed reports to understand which clients are struggling and which clients consistently pay their invoices on time. This reporting can give your law firm the information it needs to make strategic decisions for profitability and growth.

7.   Greater client satisfaction

Using Tabs3Pay benefits law firms, but it can also improve the overall client experience. The flexibility and convenience of credit card payments with a legal-specific payment processor make it easy for you to stay focused on your matters.

Clients appreciate the convenience of credit card payments. By providing a transparent system with built-in consistency and security, Tabs3Pay fosters client trust and a more positive relationship with your firm.

In turn, this benefits your firm’s reputation and can lead to more business in the form of referrals because happy clients are more likely to recommend your services to others.

Improve your payment processing with Tabs3Pay

In the legal industry, every advantage for your law firm can serve as a competitive edge.

Tabs3Pay improves all aspects of the payment process, both for your team and your clients. It lets you streamline non-billable tasks, improve client satisfaction, and take credit for all your work. It also works seamlessly with Tabs3 Billing and PracticeMaster, helping law firms create a customizable system for managing and growing their practices.

Ready to see how Tabs3Pay can transform your billing process and your practice? Schedule a demo or sign up for your free trial today.

How to Make Tax Season a Breeze for Your Law Firm

Tax season doesn’t have to be a time of stress and last-minute scrambling for law firms and attorneys. With the right preparation (and tools), you can turn this often-dreaded period into a smooth, manageable process.

Whether you’re flying solo or are part of a large legal practice, there are straightforward steps you can take to get your financial house in order well before you need to file taxes for the year.

Let’s review some essential tips to ensure your law firm is ready to meet tax season head-on.

Make tax preparation a year-long process

Tax prep is inevitable. If you chip away at the main tasks and stay organized during the year, you’ll barely register the stress of this notoriously challenging season.

Prepare for tax season throughout the year with efficient record-keeping and billing practices. Keeping documents organized prevents the end-of-year or last-minute scramble to balance accounts and locate information to complete tax forms.

For example, use the advanced reporting features in your legal billing software to keep track of your accounts receivable, expenses, write-offs, and other financial information each month.

Additionally, check in on your general ledger processes early to stay on top of your bank account balances and reconciliation status, and correct coding errors when necessary.

What else can you do to stay on top of your tax-related tasks? Here are five more tips.

1. Manage IRS Form 1099 year-round

Many law firms struggle with IRS Form 1099-MISC and Form 1099-NEC each year, and each form has different requirements to follow. For example, the IRS requires Form 1099-NEC when your law firm pays over $600 in compensation for services to individuals who are non-employees, such as court reporters, expert witnesses, co-counsels, jury consultants, etc.

Who issues Form 1099s?

Typically, the payor of a taxable settlement or judgment payment issues Form 1099-MISC to the payee. However, some law firms might be required to issue a form 1099-MISC if they play a significant role in overseeing and managing the client’s settlement or trust funds.

When do law firms receive 1099s?

In addition to issuing numerous 1099s, your law firm should receive 1099s from clients who pay you $600 or more during the year for legal services or nonlegal services. The 1099s you receive must be included with your law firm’s business tax return.

When should 1099s be issued?

The deadlines range from January 31st to the end of February, depending on the type of form 1099 being issued.

You can avoid headaches with 1099s by tracking payment activity throughout the year. Law firm accounting software helps you record payments and receipts that require 1099s, prepare tax forms, mail recipient copies, and file the forms electronically with taxing authorities.

2. Track deductions and expenses

Many expenses your law firm incurs can be deducted on tax returns. Examples of typical law firm deductions include, but are not limited to:

  • Credit card transaction fees
  • Travel and mileage
  • Office expenses
  • Continuing Legal Education (CLE)
  • Advertising and marketing
  • Insurance premiums
  • Professional dues
  • Research materials
  • Retirement plan contributions for employees
  • Fees for professionals

Your tax professional should advise you about the business expenses you can deduct.

However, you need to provide your tax professional with accurate and complete information about law firm expenses for them to determine which expenses can be used as law firm deductions for tax purposes.

Tracking expenses throughout the year and posting the amounts to the correct categories is essential. Legal accounting software can help, especially when it’s time to print a detailed report of the law firm’s expenses for the year.

3. Invest in legal accounting software

If your law firm is manually entering and preparing financial reports or using software not specifically designed for law firms, switching to a law firm accounting software may be the best way to prepare for tax season.

Legal accounting software streamlines your law firm’s accounting process and provides enhanced financial information about your law firm, which decreases the risk of costly errors and mistakes.

When choosing legal accounting software, search for a provider that integrates with your practice management software. Many systems also integrate with other products a law firm might use, such as document management platforms, secure file sharing, payroll services, and tax form preparation and filing.

4. Complete your year-end financial analysis

Attorneys and law firms need to perform a year-end financial analysis for many reasons, including preparing for tax time.

Because you may need to take care of outstanding issues before the end of the year, you benefit from performing these year-end accounting and financial steps in November:

  • Identify and collect outstanding accounts receivable. Ensure all billing and time entries are current, prepare an accounts receivable report, and take steps to collect outstanding balances.
  • Review the law firm’s accounts payable report to ensure all payments due before the end of the year are paid.
  • Ensure all client ledgers are up-to-date and balanced. Reconcile all trust accounts before December 31st.
  • Review your Owner’s Draw account to ensure attorneys are paid all amounts owed to date. If you have unpaid receipts or travel expenses, pay those now before the end of the year.
  • Make year-end charitable donations and retirement contributions to reduce taxable income.

Finally, prepare and review the law firm’s financial statements. Financial statements include income statements, balance sheets, and cash flow statements. Your law firm’s financial statements give you an overview of the practice to ensure everything is recorded and reconciled.

5. Know your tax filing deadlines

Various tax filings have different deadlines. Check with your tax professional to verify tax deadlines now so you are not in the position of rushing to complete financial reporting and tax forms at the last minute.

You should also know tax deadlines for filing payroll taxes, quarterly taxes, and other tax obligations for the law firm.

Tabs3 Software simplifies tax season for law firms

Tabs3 provides reliable and trusted service to lawyers and law firms. Our legal accounting software has effective tools to manage all aspects of your law firm’s finances, from trust accounting and billing clients to tracking expenses and preparing for tax season.

To learn more about how Tabs3 can help make tax season less stressful by managing your daily law firm finances, schedule a free demo today!

Keep Your Sterling Reputation by Doing Comprehensive Conflict of Interest Checks

As a lawyer, you know that you have a duty to “zealously protect and pursue a client’s legitimate interests.” But what happens when those interests collide with another client’s, or even your own?

Understanding and managing conflicts of interest is essential for managing an ethical legal practice and maintaining client trust.

Let’s explore what constitutes a conflict of interest, why it’s a pivotal issue, and how you can effectively navigate conflict checks at intake by using the latest technological tools.

Understanding the concept of conflict of interest

Conflicts of interest in the legal field are an issue that can have real-world repercussions for both lawyers and their clients. That’s why attorneys usually begin an initial consultation with a conflict of interest check to see if a prospective client’s matters are at odds with those of an existing client.

The American Bar Association’s (ABA) Model Rules of Professional Conduct contain extensive rules on conflicts of interest, both for current and prospective clients.

According to Rule 1.7, a conflict of interest exists when there is a significant risk that a lawyer’s ability to represent a client will be materially limited by the lawyer’s responsibilities to another client, a former client, or a third person, or by a personal interest of the lawyer.

In simpler terms, a conflict arises when:

  • your duty to one client could adversely affect another, OR
  • your personal interests are at odds with your professional responsibilities

It’s a situation that demands immediate attention and resolution because failing to address it can lead to ethical violations and penalties.

The importance of loyalty and independent judgment

At the core of the attorney-client relationship is the principle of loyalty and independent judgment.

Clients entrust lawyers with all manner of highly sensitive data, including financial and personal information, and rely on them for legal advice and representation. Any form of conflict can erode this trust and compromise the quality of legal services provided.

For instance, if you’re representing two clients in a business transaction, can you truly advocate for both parties equally? The answer is often no, and this is where conflict of interest checks come into play.

Conflict of interest checks are not just a formality. They’re a crucial step in maintaining the integrity of the legal profession.

Common types of conflicts in legal practice

There are always nuances to legal practice, and conflicts of interest are no different. Understanding these types of conflicts is about adhering to legal guidelines and maintaining the trust and integrity that are the bedrock of the legal profession.

Opposing client interests

This type of conflict arises when you represent clients whose interests could potentially clash in the future, even if they aren’t directly opposed at the moment.

For example, you might represent two different clients in separate but similar business negotiations. If one client’s successful deal could negatively impact the market conditions for the other client, you are in a situation of opposing client interests.

Limited abilities due to other responsibilities

Sometimes, your ability to fully represent a client is hindered by obligations to another party. This could be another client, a former client, or even a personal matter. When this situation arises, it becomes difficult to give both parties your best effort.

Exposure to the opposing party’s information

If you’ve had access to sensitive information from an opposing party in a previous case, taking on a new case against that party is fraught with ethical pitfalls.

Business transactions with clients

It’s widely known that, as the ABA’s ethical guidance states, a “lawyer’s own interests should not be permitted to have an adverse effect on representation of a client.”

Entering into business deals with a client can muddy the professional relationship. Your interests could easily become misaligned, leading to a conflict that is hard to resolve.

The traditional way of conducting conflict checks

Before the advent of specialized legal software, conflict checks were often a manual, time-consuming process. Lawyers would rely on:

  • Centralized databases: Manually searching through databases for names and entities related to potential new clients.
  • Team consultations: Discussing potential conflicts with other lawyers and paralegals in the firm.
  • Manual legal obligation review: Examining legal documents like confidentiality agreements or noncompete clauses that could cause conflicts.

These methods are prone to human error and can be incredibly time-consuming. These days, there are much more efficient ways to keep yourself in the clear.

The role of informed consent

Keep in mind that in some scenarios, conflicts can be managed through informed consent. This means all affected parties agree to proceed after full disclosure of the potential conflict. However, not all conflicts can be resolved this way, and in some cases, you may need to decline representation altogether.

The modern solution: Specialized legal software

In contrast with manual conflict checks, which are cumbersome and error-prone, specialized legal software has features designed to automate and streamline the conflict identification process, boosting speed and accuracy.

A software solution helps you conduct more accurate and efficient checks by allowing you to:

  • Search through a comprehensive database of clients, matters, and related parties.
  • Generate detailed conflict reports for review.
  • Maintain a record of all conflict checks for compliance and auditing purposes.

By integrating advanced software solutions into your conflict check procedures, you save time and enhance the reliability and integrity of the process.

Simplify conflict checks with Tabs3’s specialized tools

As an attorney, your reputation is one of your most valuable assets. Upholding ethical standards is a cornerstone of a successful practice. By staying informed about the nuances of what constitutes a conflict of interest and employing effective management strategies, you can safeguard your reputation and build stronger, more trusting relationships with your clients.

Tabs3 offers a range of features that make conflict checks more reliable and efficient:

  • Comprehensive database searches. Quickly search through a centralized database that includes current clients, past clients, and opposing parties, as well as any associated information for these clients.
  • Team collaboration features. Easily consult with team members within the platform, ensuring everyone is on the same page.
  • Search inside and outside of the database. PracticeMaster enable you to search outside documents and emails to ensure as comprehensive a search as possible.

By adopting PracticeMaster, you can significantly reduce the time and effort required for conflict checks, allowing you to focus more on your clients and less on administrative tasks.

Tabs3 is a comprehensive software solution designed to streamline your legal practice and enhance compliance. From legal billing to a financial suite, Tabs3 provides the tools you need to maintain airtight ethical integrity.

Don’t leave your reputation to chance. Invest in a solution that supports your commitment to ethical practice. Schedule a demo or begin your free trial today.

Why Your Clients Will Love Tabs3Pay

As a law firm, you’re not just offering legal services; you’re providing a holistic experience that begins the moment a client walks through your door and continues well beyond the resolution of their case.

One crucial aspect of this experience that’s often overlooked is the payment process.

In an era in which digital transactions are the norm, clients expect and appreciate the ability to make payments quickly and conveniently. They value transparency in their transactions and trust that their sensitive information will be handled with utmost security. With a legal software solution, you can meet and exceed these expectations, strengthening your client relationships and setting your firm apart in a crowded marketplace.

Whether it’s the ease of secure online payments, the flexibility of mobile optimization, or the reassurance of automated payment reminders, Tabs3Pay has a host of benefits that your clients will love.

The role of payment convenience in client satisfaction

In today’s on-demand world, convenience is king. Clients are no longer satisfied with outdated payment methods that require them to physically visit your office or mail a check. They want to settle their bills quickly and efficiently. This is where Tabs3Pay shines.

Secure online payments

With a legal credit card processing solution, your clients can pay their bills anytime, anywhere. This is particularly beneficial for clients who are unable to visit your office in person. With a few clicks, they can settle their accounts from the comfort of their homes, on the road, or anywhere in between.

Online payments are not just about convenience; they also provide a critical layer of security. Clients can rest assured that their sensitive financial information is protected by gold-standard security measures to reduce the risk of fraud or theft.

Tabs3Pay offers secure online payments that are compliant with the Payment Card Industry Data Security Standard (PCI DSS), which offers an exceptional level of security and safeguards credit card information against fraud and data breaches.

Mobile optimization

The ability to pay for goods and services via a smartphone or tablet is expected in today’s mobile-first culture. Tabs3Pay is mobile-optimized, providing a seamless and user-friendly experience on all devices.

Your clients can easily view their bills, make payments, and receive instant confirmation of their transactions, all from their mobile devices. This feature is particularly beneficial for tech-savvy clients who prefer to manage their finances digitally.

By offering a payment solution that aligns with your clients’ lifestyles and preferences, you make their lives easier and show that you understand and cater to their needs. This can significantly enhance their overall experience with your firm and foster long-term loyalty. It can also help you build trust, an essential ingredient in great legal service.

Building client trust through payment transparency

Trust is the cornerstone of any attorney-client relationship. Clients entrust you with their sensitive information, and in return, they expect honesty, integrity, and transparency. This extends to all aspects of your services, including the payment process.

Surcharging

One of the standout features of Tabs3Pay is surcharging. This service allows your firm to pass on the expense of credit card processing fees to the cardholder. While this might seem like a minor detail, it plays a significant role in promoting transparency.

With surcharging, clients can see exactly what they are being charged for. There are no hidden fees or unexpected charges. Everything is laid out clearly, which can enhance trust and satisfaction. Clients appreciate knowing where their money is going, and this level of transparency can set your firm apart.

Automated payment schedules

Another feature that promotes transparency is scheduling automated payments with your clients. With Tabs3Pay, you can schedule payments to automatically process on a specified day of the month or on a one-time basis. This is not only convenient for your client, but makes it easy for your client to know when their payments will process.

Scheduled payments also provide a clear record of payment and amounts, which can be helpful for clients who like to keep track of their finances. By keeping your clients informed and up-to-date, you show them that you respect their time and financial obligations, bolstering their trust in your firm.

Enhance the client experience

Legal-specific software solutions are designed to streamline your practice and enhance your clients’ overall experience with your firm. Look for the tool that can do the most for your clients. Tabs3Pay isn’t just a payment processor; it’s a solution that offers a range of convenient features that can help you meet and exceed your clients’ expectations.

Trust account support

For clients who have funds in trust with your firm, the proper handling of these funds is a matter of significant concern. Tabs3Pay is designed with trust accounting in mind, offering a feature that separates earned and unearned fees to ensure that trusts are handled correctly in accordance with legal and ethical standards. It’s another way that Tabs3Pay promotes transparency and builds trust between your firm and your clients.

Secure payment link

These days, law firms can offer clients the option to pay their bill safely and securely via a link included with their emailed statement. The Tabs3 Payment Link feature makes it easy for clients to settle their accounts, reducing the potential for confusion or misunderstandings about billing.

Once a payment is made, you can import it directly into Tabs3 Billing. This seamless integration saves time for your firm and ensures that your clients’ payments are processed and recorded accurately.

Seamless integration

Tabs3Pay’s strength lies in its seamless integration with other Tabs3 products, providing a unified, efficient experience for both law firms and clients.

Consolidate your tech stack with:

Tabs3Pay syncs with other Tabs3 products to provide a comprehensive solution for managing law firm finances and payments, enhancing the client experience with a smooth, easy-to-use payment process.

Improve client satisfaction with Tabs3Pay

In the increasingly competitive legal field, providing an exceptional client experience is more than just nice to have. It’s a necessity.

By adopting Tabs3Pay, you’re not just improving your payment process but also enhancing your clients’ overall experience with your firm. You’re showing your clients that you understand their needs and are committed to meeting them. And in doing so, you build stronger, more trusting relationships that can lead to increased client satisfaction, loyalty, and ultimately, greater success for your firm.

Ready to see how Tabs3Pay can transform your clients’ experience? Schedule a demo or sign up for a free trial today and see the difference it can make.

How You Can Use Client Portals for Easy Payment Processing
At its core, a law firm is a business. And businesses need enough funds to operate smoothly. While the business side of things is important, this often means that law firms find themselves spending too much time on billing and collecting payments and not enough time practicing law.

Law firms want to receive payments on time. Clients want transparency and convenience. The best way to meet both of those needs is to introduce a client portal.

How client portals streamline the payment process

Paying for services online is fast becoming the norm. Clients expect convenient payment options from all of their vendors, and their lawyer is no exception. The easier it is to pay your invoices, the more likely clients are to do it on time.

Online payments are convenient for clients, but they also make a significant impact on a law firm’s billing and collections process. With online payments, law firms can:

  • Get paid faster
  • Spend less time on past-due collections
  • Minimize manual errors, write-offs, and other drains on profitability
  • Ensure safe transactions with PCI compliance and other security measures

On the client side, client portals reduce guesswork by storing all client billing information in one place. With client portals, clients can benefit from:

  • Convenient access to make payments online
  • Viewing full billing history
  • Saving credit card information for easier payments
  • Clear information regarding any due balances

Client portal best practices for law firms

When implemented right, client portals ease the payment process for law firms and their clients. If you don’t use a well-planned roll-out strategy, even the best systems can fall flat.

Make sure your staff is on the same page

Even if the client portal is easy to implement, you need to ensure that your staff knows how to use the system. Take some time to roll out the product internally before you introduce it to your clients.

Once your team is on board and trained, they can serve as a resource for clients to help them feel comfortable while using the client portal.

When onboarding employees, make sure your firm:

  • Creates a launch plan with clear accountability and leaders
  • Provides detailed training on the software
  • Demonstrates how the program benefits your team, as well as your clients
  • Shows specific use cases in employee training
  • Provides specific talking points and messaging tips for staff to use when they communicate with clients

Discuss the new features with long-term clients

For long-term clients, it can be a big adjustment (and potentially a negative experience) if you shift from your old payment system to a client portal without clear and frequent communication about the process and the new tool.

Create a set of client communications pieces in advance of the portal rollout, explaining the new system. Emphasize its benefits, including:

  • Increased transparency
  • Easier online payments
  • Quick access to billing history

Once your system launches, follow up with your clients to answer any questions they may have. Consider drafting an FAQ sheet or adjusting your rollout communications as you receive more feedback.

Finally, keep in mind that not all long-term clients will want to switch to a new payment system. Be sure to communicate clearly about all of the payment options that are available.

Communicate with new clients from the very beginning

Client onboarding can feature a lot of documentation and explanations, and the idea of adding even more information may seem overwhelming. However, clear and up-front communication can only make your clients feel more comfortable with your firm.

  • Set expectations: discuss your client portal and payment processes early in the onboarding process to prevent any unwanted surprises.
  • Explain the benefits: emphasize how client portals can benefit your clients. Portals may seem like an extra step to payment processes, but they’re also much more secure for your client’s continued confidentiality.
  • Provide FAQs: every new system will lead to some common questions. How do I change my password? Where can I see my billing history? Make sure you and your staff are prepared to work through these with your clients.
  • Don’t use too much technical jargon: lawyers may be in the practice of using complex terminologies and language, but your clients are not. Remember to keep it simple. Not sure if your instructions are clear? Have outside parties review your communications and instructions to see if they can follow your documentation without getting confused or frustrated.

Streamline your payment process with Tabs3’s new client portal

Tabs3 Software’s Platinum edition offers a new client portal that integrates with Tabs3Pay to provide all the tools you need to streamline your payment process.

Learn how Tabs3’s client portal can transform your billing process and schedule a walkthrough demo today.

Tabs3 Awarded Nine G2 Badges for Q1

Standing out from the crowd can be difficult in today’s busy software marketplace, but we can’t think of a better way to stand out than to be recognized for customer satisfaction.

At Tabs3 Software, we’re pleased to announce that we have been awarded nine badges from G2 for Quarter 1 of 2023.

G2, the largest tech marketplace and review platform in the world, rates vendors and products on a quarterly basis using feedback from user reviews, along with information compiled from web resources and social media.

As a result, it has become a highly trusted resource used by professionals who are seeking to make informed decisions about which software solutions to invest in for their businesses.

Tabs3 Software has been recognized with the following awards:

High Performer: Overall

  • Legal Practice Management
  • Legal Case Management
  • Legal Billing

High Performer: Small Business

  • Legal Practice Management
  • Legal Case Management
  • Legal Billing

Easiest Admin: Overall

  • Legal Practice Management
  • Legal Billing

Easiest Admin: Small Business

  • Legal Billing

The Tabs3 experience

Tabs3 Software provides an integrated suite of billing, practice management, and financial software that simplifies managing matters, calendars, contacts, and documents.

Our products include:

With an overall G2 rating of 4.2 out of 5 stars, we at Tabs3 take pride in the quality of our products and support. Additionally, nine out of ten clients recommend Tabs3, and we continually receive a more than 98% satisfaction rating from our clients for our outstanding support team.

Here’s what Tabs3 clients are saying on G2:

“Their customer service is great and very communicative. They are consistently coming up with new updates to make our practice more seamless. They have a very handy “how-to” website with easy-to-follow instructions on the many features Tabs3 offers. Also, I really appreciate the video tutorials.”

  • Kimberlee S.

 

“The software works quite well for our firm. The support staff is personable, pleasant, patient and very knowledgeable. Honestly, there is not much to dislike about working with Tabs3 Software. It is such an improvement over our old billing software.”

  • Patricia M.

 

“The system-wide integration of client data, billing, accounting, etc., helps us track our finances and productivity very well. We tried other systems that integrated with Quickbooks, and we much prefer having everything under one software platform. Also, Tabs3 has the best customer support of any software company I have ever used.”

  • Jeffrey L.

To see more reviews, visit Tabs3 on G2.

About Tabs3

Software Technology, LLC, the maker of Tabs3 Software, is a leading provider of legal software in the United States with nearly 45 years of innovation and more than 100,000 active legal professionals using its products. Tabs3 Software offers billing, trust accounting, practice management, and payment solutions for solo to midsized law firms.

About G2

G2 is the world’s largest and most trusted software marketplace. More than 60 million people annually—including employees at all of the FORTUNE 500 companies—use G2 to make smarter software decisions based on authentic peer reviews. Thousands of software and services companies of all sizes partner with G2 to build their reputation, manage their software spend, and grow their business—including Salesforce, HubSpot, Zoom, and Adobe.

Understanding the Importance of Time Tracking

For law firms, time is quite literally money. With a finite number of billable hours in a day, the way you structure, track, and plan for time can make a significant difference in areas across your legal practice.

Beyond accurate time management, incorrect timekeeping has far-reaching consequences for:

  • Company profits
  • ABA compliance
  • Staff management
  • Client trust

The best way to improve all of the above? Accurate time tracking.

Six benefits of accurate time tracking

Time tracking is key to accurately staffing and allocating resources for every facet of firm operations. Let’s get more specific, though. Here are six major benefits of proper time tracking, and how you can step up your system today.

1.   Better matter budget

Because law firms build matter and case plans based on previous experience and knowledge, it can be difficult to scope projects correctly without accurate background information for similar tasks. If your firm chronically under-tracks time, then team members will consistently fall victim to underfunded projects and impossible timelines. This can also negatively impact the client experience (and ultimately, client satisfaction).

Under-tracking time doesn’t just impact billable hour projects, either. For non-billable business operations, under-budgeted projects lead to wasted work, inefficient systems, and poor project rollout.

No matter how you frame it, knowing how much associate and partner time is needed for a project will have a significant impact on a matter’s overall success. Otherwise, you may not have the time and resources you need to succeed.

2.   Allocate resources accurately

Similar to budget allocation, historical project data is critical to accurately allocating resources for billable and non-billable initiatives in a legal practice. An underestimated project will take up more than the projected time, costing the firm more money and potentially leading to stressful working conditions for attorneys and staff.

On the other hand, if a firm overestimates necessary resources, it can have the opposite problem. Projects can be overstaffed. If staff time isn’t allocated correctly, it can cost associates and partners much-needed billable hours. What’s more, other client work may suffer and profitability can decrease across the board.

3.   Set profitable rates and fee structures

Many firms provide different fee structures to cater to client needs, including flat fees, retainers, fee splitting, and contingency.

If your firm uses flat fees or task-based billing, your profitability depends on accurately pricing your services based on how much time a matter will take to resolve. Without accurate time tracking, you could be severely underselling your services. It’s as simple as that.

4.   Maintain compliance with ABA regulations

Beyond your own firm’s needs, time tracking is essential to maintaining compliance with ABA Model Rules of Professional Conduct 1.5, 1.6, and 1.15.

Per the American Bar Association, improper tracking of billable hours can lead to serious ethical dilemmas, disciplinary measures, and even disbarment.

It’s important to note that compliance matters for every team member, not just partners. According to Model Rule 1.5, firms can only charge reasonable fees (the definition of which varies based on several factors). If an associate charges a client unreasonable or padded fees, they are accountable for their actions, even if they were directed to do so by a supervising lawyer.

To keep this issue to a minimum, the ABA suggests that legal staff, especially new lawyers, take care to review bills to avoid allegations of padding, especially when logging time for multiple cases at the same time.

The ABA’s top tip for compliance? Use a desktop- and mobile-friendly time-tracking tool as part of a larger practice management system for accurate billing practices.

5.   Improve client relationships

As previously noted, padded fees and invoices are a serious breach of ABA regulations. Beyond the risk of disciplinary measures, improperly tracked time can compromise client trust.

Trust is the cornerstone of strong client relationships for a law firm. Clients come to law firms to deal with serious and often stressful legal matters. They need someone they can trust to resolve their matters. If your firm loses that trust via padded billing practices or unreasonable fees, that trust is nearly impossible to get back.

On the other hand, consistent, transparent time tracking and fee structures promote open and honest communication which will lead to increased client satisfaction stemming from the level of transparency regarding pricing. This level of understanding fosters mutual trust, which is key to a law firm’s long-term growth.

6.   Better understand your staff’s performance

Time tracking is an important measure of efficiency and productivity, and it tells you how much staff worked on specific projects, or with certain clients. In addition to the numerous issues listed above, inaccurate time tracking can hinder your firm’s ability to support staff who may need more help and reward staff who go above and beyond.

All of these factors play into performance reviews, employee recognition, fair compensation, and keeping track of potential high or low performers at your firm.

How to improve your firm’s time-tracking system

The biggest way to improve a firm’s time-tracking system is to implement automated time tracking throughout the day, rather than tracking time at the end of the day or week.

According to the ABA, lawyers who wait until the end of the day can lose 10% of their billable time. For lawyers who wait until the end of the week, that number goes up to a 25% loss of billable time.

By tracking time throughout the day, team members gain an accurate picture of their billable hours. But tracking via paper and pencil can be inefficient (and easy to forget). Instead, consider working with legal practice management software with integrated time tracking. For example, Tabs3 Connect allows lawyers to track their time on any smart device, and easily switch between projects or pause for breaks.

As an added bonus, Tabs3 Connect’s time tracking seamlessly integrates with Tabs3 Billing. As timekeepers track their work throughout the day, the fees will be immediately available back at the office, ready to appear on your client’s next statement. This saves time compiling client invoices each month, while still providing easy editing capabilities to ensure accurate client billing.

Simplify your time tracking with Tabs3 Software

Time tracking doesn’t have to be complicated. Simplify your system and see the results for yourself with Tabs3 Connect’s timers, accessible from any smart device, no matter where your work takes you.

To see how Tabs3 can help transform your time tracking and firm productivity, schedule a walkthrough demo today.

5 Essential Billing and Invoicing Tips to Optimize Your Firm

Billing and invoicing are typically not tasks that firms think of as getting easier over time. The more a firm grows, the wider its service offerings, and the more complex your accounting becomes.

However, billing and invoicing don’t have to be complicated or tedious. When it comes to billing and invoicing, taking the time to adjust your strategy and standard operating procedures can set your firm up for success and streamline your billing process.

Five billing and invoicing tips to improve your law firm’s payment process

There are a number of strategies to optimize your firm’s billing and invoicing, from how you communicate with clients to the systems you use to process payments.

1.   Set clear payment policies and communicate them with clients from the start

No one likes a surprise, especially when it comes to billing.

Communicating your payment policies with your clients before signing them on or completing any billable hours can prevent conflict or disputes down the road. Establishing clear payment terms and conditions also establishes expectations for how the payment process should unfold and define obligations for you and your client.

Your payment terms and conditions should include:

  • When payments are due
  • What types of payment are accepted
  • How late or missed payments are handled

These expectations are vital for building long-term trust between you and your client. When clients understand their obligations, they can:

  • Clear up questions before they become an issue
  • Understand their payment options
  • Budget for legal expenses
  • Inquire about alternate arrangements for fees
  • Avoid late fees

All of these steps will prevent drawn-out disputes and negative client experiences. Your team should also be looped into payment terms and conditions so they can answer questions confidently. In addition to training staff, it can also be helpful to add this information to any internal knowledge base you may have.

2.   Track time in detail to provide transparent and complete invoicing

Tracking time is imperative for billing your legal services, but not all time-tracking methods are created equal. With manual time tracking, data entry can be time consuming and lead to serious errors. In turn, this can create tension with clients who need to trust that their bills are accurate. If you don’t get it right, you may risk compliance violations.

On the other hand, time-tracking software can save attorneys a great deal of time and stress, allowing them to easily capture billable time in full detail so there are no questions about what goes into each invoice. Some software solutions can also connect to your phone or tablet, so you can track time on the go without missing a beat.

3.   Send invoices on a consistent schedule

Consistency is the key to building habits, and this goes for your firm and your clients alike. Internally, if your team establishes a consistent schedule for invoicing, it can quickly become a standardized and, with the right tools, automated workflow for your billing staff.

At the same time, clients are more likely to pay their bills when they know what to expect. Receiving bills at the same time each month creates an established pattern: receive invoice, submit payment, repeat. Consider scheduling your invoices to go out following common pay days so clients are more likely to receive your invoice when they have sufficient funds to pay your bill without a second thought.

Look for accounting systems that allow you to create batch invoices with easy editing capabilities. Automating batch invoicing can make staying consistent much easier for your firm.

4.   Use legal-specific payment processors for easy online payments

The less convenient it is for clients to pay your invoices upon receipt, the less likely they are to do so. Making the payment process as simple as possible for clients to pay will not only get you paid on time, but it will also cut down on the time and overhead required to follow up with delinquent payments and manage law firm collections.

Convenient online payment options help your firm eliminate cash flow and collections issues. One survey of legal professionals found that firms that accept digital payments by card get paid 39% faster on average. That’s a significant improvement for legal professionals looking to collect payments.

Quicker payment turnarounds also make it easier for your firm to budget by taking the guesswork out of your forecasted monthly revenue. These insights allow for more accurate financial planning and allow you to invest in the growth of your practice with less worry.

It’s key, though, for law firms to work with legal-specific payment processors. While there are many payment processors on the market, generic options don’t provide the compliance safeguards that ones built for legal professionals do, such as compliance with ABA and IOLTA guidelines.

5.   Be proactive about reporting so you can spot problem areas in advance

Taking a proactive approach to problems is vital for a thriving law firm. But proactive strategies work best when they are paired with data, especially when you’re evaluating your accounting processes.

To optimize your accounting system, look at reports that help you:

  • Identify your most valuable clients and practice areas
  • Spot unbilled transactions and hours
  • Review clients that may be causing repeat issues
  • Identify any discrepancies or pain points in the system
  • Stay on top of compliance
  • Assess processes and look for opportunities to improve

By staying proactive, automating where it makes sense, and creating consistency for all parties, your billing and invoicing can become a well-oiled machine.

Improve your billing and invoicing with Tabs3 Software

Tabs3 Software offers a fully integrated suite of billing, accounting, and practice management tools designed to help law firms run more efficiently and profitably.

Tabs3 Software delivers:

  • Compliant online credit card payment processing with Tabs3Pay
  • Easy-to-use time-tracking functionalities
  • Advanced reporting
  • Calendaring and matter organization tools
  • And more

To see how Tabs3 Software can help your law firm implement better billing and accounting practices, schedule a walkthrough demo or sign up for a free trial today.