Consumers have spoken: they prefer electronic payments by an overwhelming margin. As electronic B2B transactions rise, your business clients likely are not far behind. This month, Tabs3Pay rolls out three new electronic payment options, making it even more convenient for your clients to pay their bills. 

Your clients’ needs at the forefront

Tabs3Pay allows you to provide unparalleled client service in the billing function. 

Clients can choose email billing with embedded payment links or a secure payment portal, depending on your Tabs3 configuration. For ongoing clients or complex matters, you can simplify the billing burden with scheduled and/or recurring payments. You can even accept payments over the phone. 

Your clients choose the payment method they prefer: credit card, debit card, or e-check/ACH. Starting in May 2025, clients can also pay via Venmo, PayPal, and PayPay Pay Later, unless you disable those options.

• PayPal is one of the largest, most popular, and most trusted online payment platforms. Users can send money via credit card, debit card, or bank account. Transactions are safe and encrypted. Paypal has 432 million account holders (2024).
• Venmo is a PayPal product, and works much like PayPal. It was originally optimized for transactions among friends and social sharing, but now supports business transactions. Venmo has 64 million monthly users (2024).  
• PayPal Pay Later is a buy now, pay later (BNPL) product. Your firm receives payment immediately, and the client pays PayPal over time (up to 24 months). BNPL use is growing, and is popular among younger people and those with lower credit scores. Accepting BNPL payments can help firms serve clients who are less financially secure, increasing access to legal services, while mitigating financial risk to the firm. 

A trusted platform built for attorneys and legal professionals

Professional staff, attorneys, and firm managers also reap rewards from Tabs3Pay:

• Professional staff: Electronic payment systems make it easy to accept payments, reducing repetitive, error-prone manual processes. Further, Tabs3Pay is the only payment platform that is fully integrated with your existing Tabs3 software, so you can complete all billing and accounting work in a single system. 
• Partners: By reducing friction at the point of payment, firms can get paid sooner, spend less time making collections calls, and reduce write-offs. That can add up to larger bonuses and more compensation.
• Managing partners: Law firm owners have special ethical obligations, and Tabs3Pay was created to meet them. All deposits go into your trust account, while debits (like fees) are only applied to operations accounts. The secure, PCI compliant payment system also reduces the risks of lost checks and check fraud while keeping your clients’ data safe.

Tabs3Pay: Your partner in exceptional client service

You spend your days working tirelessly for your clients. Tabs3Pay can lighten the load. With simple, transparent pricing, quick setup, and expert U.S.-based tech support, Tabs3Pay helps you delight every client.

Ready to learn more? Set up a demo with our payments team today.

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? Implementing time-tracking software for attorneys.  

Six benefits of accurate legal time tracking software

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

1. Track and plan matter budgets

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. Crucially, 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. 

Using an attorney time tracking software like Tabs3 helps your team track time in as little as two clicks. Once you’ve recorded time, you’ll be able to benchmark future projects against that time, so you budget appropriately.  

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. 

Tabs3’s legal time tracking software not only helps you track time, our built-in journal function allows your team to keep detailed notes on each matter. This is vital for budgeting time for future tasks, as notes can inform where the most time was spent and how that can be expedited in the future.  

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 legal time tracking software, 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 attorney time tracking 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. With Tabs3, turning a legal timer on and off is so easy that it will become muscle memory.  

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 attorney time can compromise client trust, and 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, it’s 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

Attorney time tracking is an important measure of your firm’s efficiency and productivity, and it tells you how much staff worked on specific projects, or with certain clients. In addition to the financial, ethical, and reputational risks associated with derelict legal time tracking, 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. 

We get the pushback: attorneys are busy, and they don’t want to be distracted by turning timers on and off. However, modern legal time tracking software like Tabs3 is incredibly easy to use. It takes just two clicks to start or stop a time, and it can be managed from your computer or phone, meaning your ability to track billable hours isn’t tethered to your desk.  

Simplify your time tracking with Tabs3 Software

Nobody wants tedious, menial tasks added on top of day-to-day work. But attorney time tracking doesn’t have to be that way anymore. Today, attorney time tracking software like Tabs3 make time tracking simple and help firms save time later by automatically translating tracked time to bills.   

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

Providing a seamless, secure, and convenient payment experience for your clients is crucial in today’s fast-paced world. Clients increasingly expect digital solutions that are not only efficient but also user-friendly and secure.

This digital-first approach also promotes transparency, which can build trust and reduce potential misunderstandings. Automated reminders also help avoid late payments while maintaining a professional relationship with clients.

Incorporating Tabs3Pay into your legal practice could be a game-changer for your firm and clients. The ability to securely accept online payments adds a level of convenience that today’s clients appreciate. All in all, your clients will love the efficiency, flexibility, and ease of use that Tabs3Pay provides, making the entire payment experience smoother and more transparent for them.

The role of payment convenience in client satisfaction

In today’s on-demand world, convenience is a top priority. Clients are no longer satisfied with outdated payment methods that require them to physically visit your office or mail a check. They want a hassle-free way to pay their bills quickly and efficiently.

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 home or on the go from any mobile device.

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 top-tier 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.

Optimized for mobile devices

The ability to pay for goods and services by phone or tablet is expected by today’s consumers. 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.

With the ability to pay with Apple Pay or Google Pay using a digital wallet, your clients will appreciate the convenience of not having to enter card information each time they need to make a payment.

Building client trust through payment transparency

Trust is key for 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 optional 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. Everything is laid out clearly, which can enhance trust and satisfaction.

Automated payment options

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. Setting up a payment schedule is both convenient for your clients and your firm.

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 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 your clients needs.

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 an easy way for clients to deposit trust funds into their account separately from the way they pay for billed work. It’s another way that Tabs3Pay promotes transparency and builds trust between your firm and your clients.

Securely emailed 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. This seamless integration saves time for your firm and ensures that your clients’ payments are processed and recorded accurately.

Seamless integration

Tabs3Pay’s strength is attributed to its seamless integration with other Tabs3 products, providing a unified, efficient experience for both law firms and clients. Consolidate your tech stack with Tabs3 Cloud, which includes:

• Tabs3 Billing
• Tabs3 Financials
• PracticeMaster

Tabs3Pay integrated with Tabs3 Billing and Trust Accounting to provide a comprehensive solution for managing law firm finances and payments, enhancing the client experience with a smooth, easy-to-use payment solution.

Improve client satisfaction with Tabs3Pay

In the increasingly competitive legal field, providing an exceptional client experience is a necessity. By adopting Tabs3Pay, you’re not just improving your payment process but also enhancing your clients’ overall experience with your firm.

Show your clients that you understand their needs and are committed to meeting them. 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 increase client satisfaction? Schedule a demo today and see the difference it can make.

Making a new change at a law firm can be a time-consuming process. However, the best way to increase profits is to consider where there may be bottlenecks in your current workflows. One of the most common challenges for lawyers is invoice processing times. With such a wide range, anywhere from two weeks to less than three days, it can be difficult to maintain a dependable cash flow.

Paper-heavy invoicing processes are one of the significant factors behind a delayed billing cycle. If your firm is looking for a new way to decrease administrative hours, consider the switch to paperless invoicing.

Why are law firms still using paper?

Many law firms still use paper to file invoices. The perceived benefits are understandable. When running a business, employees develop a routine within existing systems. Upper-level management may experience pushback when attempting to implement a change.

Another common belief is that clients prefer paper invoices when, in fact, 65% of Americans have paid a bill using their cell phones in the last year.

Additionally, law firms may believe that physical documents are more secure than electronic ones. After all, one out of every 40 cyberattacks targets a law firm. Lawyers are rightfully concerned about adopting technology and protecting client information.

However, this issue can be mitigated by choosing legal-specific practice management software with the highest data security standards.

4 reasons paperless invoicing benefits your firm

Your firm may be hesitant to switch, but the bottom line is that paperless invoicing can benefit your firm in many ways, from costing less money to automating tedious tasks.

1. Paperless invoicing is a cost-saving, revenue-boosting move

Think of how much your law firm currently spends on paper invoices, with line items including postage, printer paper, ink, and expensive, heavy-duty printers. Switching to an electronic system cuts overhead costs, saving on average $1,000 per employee annually and $4-8 per invoice.

Switching to paperless invoicing can also help increase your cash flow, ensuring your firm can always cover ongoing expenses such as salaries, rent, and technology costs.

2. Paperless invoicing reduces environmental impact

Clients increasingly value service providers who take environmental issues seriously. Paperless invoicing is one way to demonstrate you care about the planet.

Consider that paper makes up 26% of landfill waste. By switching to electronic invoicing, your firm can help protect the planet for future generations.

3. Paperless invoicing is more efficient

Paper invoicing can be tedious, making it more difficult to complete correctly. When a law firm makes the switch to paperless, they benefit with improved accuracy and fewer errors due to:

• Automated data entry and calculations: Legal billing software automates invoice creation, calculating billable hours based on time tracking data.
• Standardized templates: Standardized formats remove errors and ensure that all required fields are completed, maintaining compliance with client billing guidelines.
• Real-time error checking: Legal billing software flags common issues, including duplicate entries, excessive billable hours, and formatting inconsistencies.

4. Paperless invoicing meets client expectations better

Clients check their phones an average of 144 times per day. Improve client satisfaction at your law firm by allowing them to pay on their phone. Plus, your team will receive the funds faster.

When clients see an invoice in their email or via text, they can click the link and pay immediately, rather than sending in a check by mail, which takes at least one business day once they remember.

How to incorporate paperless invoicing in your law firm

While paperless invoicing offers clear benefits to law firms, they depend on choosing the right invoicing software. Tabs3 Billing offers features just for the legal industry to streamline processes and simplify invoicing.

Create customized electronic statements

Your law firm may have specific formatting for how you want your invoice to look. With Tabs3 Billing, you can match that with statement formatting.

These changes can be made firm-wide so that everyone is on the same page about how to create a statement. Options to customize the statement include (but aren’t limited to):

• Previous balance position
• Print non-billable hours (yes/no)
• Courtesy discount position
• Blank lines between statements
• Terminology
• Headings
• Cover sheet

Take advantage of email statements

With Tabs3 Billing, you can quickly email statements to your clients via Outlook or SMTP. Tabs3 provides customizable email templates for creating messages with the attached PDF invoice. You can use time-tracked, saved details and contact information to create and send invoices via email seamlessly.

To ensure your email account for legal clients doesn’t fill up, set up a different account for your billing. This way, all billing-related matters fall into that account. You can even set up email rules to sort statements into specific folders.

Implement client convenience tools like online payments, mobile access, and client portals

Tabs3Pay, a law firm credit card processing provider, seamlessly integrates with Tabs3 Billing. The setup takes less than an hour, allowing your law firm to start accepting payments almost immediately.

Some of the benefits of Tabs3Pay include:

• Advantageous pricing: Tabs3 supports surcharging, reducing the fees associated with credit cards.
• Trust requests: Send a link via email to accept online trust deposits in minutes.
• Payment schedules: Set up scheduled payments so clients always pay on time.

When you use Tabs3 and Tabs3Pay, clients benefit. They have mobile access through the Tabs3 Cloud to make payments through the client portal. Plus, they can access previous invoices and find answers to their questions, reducing your team’s administrative load.

Establish a comprehensive financial management system

Tabs3 Billing integrates seamlessly with Tabs3 Financials, a robust accounting solution for law firms.

The software handles trust accounting and accounts payable and works as a general ledger, all in one place. There is minimal setup and zero workarounds to meet the requirements for most bar associations. Plus, the support team for Tabs3 Financials is the same as for Tabs3 Billing and Tabs3Pay. They can help you leverage all three together to maximize profitability.

Addressing common transition concerns

It’s natural to be concerned when adding new software to workflows. However, Tabs3 has considered transition issues and taken measures to ensure everyone at your law firm can use the software with these features and services:

• An intuitive and user-friendly interface that makes it easy to customize and implement everyday workflows.
• Detailed training and support options, including the online knowledge base, email and phone support from 8 a.m. to 5 p.m. CT (Monday through Friday), training videos, and certified consultants to provide in-office training.
• High-level security, including user-based permissions, payment card industry (PCI) compliance, secure transactions, and enhanced data privacy.

Create more efficient processes with Tabs3

As software technology advances, now is the time to switch to paperless billing. Law firms have trusted Tabs3’s reliable, easy-to-use integrated suite of software products for over 40 years.

Let us show you how to implement our user-friendly legal software and schedule a demo with our team today.

Legal billing and invoicing are typically not tasks that law 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.

Here are five essential tips to optimize your firm’s legal billing and invoicing systems.

Five legal 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, legal billing and 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 legal billing and invoicing processes with Tabs3 Software

Tabs3 Software offers a fully integrated suite of legal 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
• Cloud functionality to let you work from anywhere
• 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 demo or sign up for a free trial today.

As many as 18% of Americans don’t use credit cards at all. Others may not want to use credit for large invoices. But even if your client doesn’t want to use their credit card, they may still prefer the convenience of online payment compared to paying their bills by cash or sending checks in the mail.

For today’s law firms, modern payment solutions have to offer clients flexibility. Thankfully, there are solutions that can accommodate this need for flexibility while providing significant benefits to both the client and your law firm. One particularly effective option is ACH payments.

What are ACH payments?

ACH, which stands for “automated clearing house,” is a type of electronic payment in which a transfer is made directly from a bank or credit union.

ACH payments allow law firms to:

• Accept payments online
• Automate your billing system
• Provide an alternative payment system to credit cards or checks

ACH payments are becoming increasingly common in today’s payment landscape, even if we don’t always realize it. Examples of ACH payments include your employer depositing your paycheck via direct deposit, and when you set up an automatic bill payment directly from your bank account.

What are the benefits of accepting ACH payments?

From convenience to cost, incorporating ACH payments into your list of payment options can benefit both the client and the law firm. Consider these factors when weighing whether to add ACH to the list of your law firm’s payment methods.

How ACH payments benefit your law firm’s clients

For clients, ACH payments offer a convenient alternative to credit card payments.

If your clients are among the 18% of Americans who don’t use credit cards, then ACH payments provide an avenue for them to take advantage of online bill payments, which are typically faster and easier than payment by cash or check.

ACH payments are also:

• Safe and secure, with a more predictable arrival time compared to snail mail
• An easy form of contactless payment
• A reliable way to reduce paper usage for both environmental and cost purposes
• Convenient for clients who do not want to add to their credit card debt

Finally, unlike credit card payments, ACH payments do not require a surcharge. For clients who have a fixed budget or need to manage their costs, this can be an appealing benefit.

How ACH payments benefit your law firm

Similar to online payments via credit cards, ACH payments provide fast and easy payment options for your law firm, saving you both time and money.

• ACH payments save time: Facilitating online payments with an alternative to credit cards can encourage clients to pay online who might previously have relied on check or cash payments. This reduces the number of administrative tasks to complete every month, freeing up time for more important tasks.

• ACH payments save money: When clients have a payment option that fits their needs and constraints, they are more able to pay on time, in full. This leads to more on-time payments and fewer collection calls.

Are there any drawbacks to ACH payments?

ACH payments are growing in popularity thanks to their numerous benefits to law firms and clients. But what about the drawbacks?

All financial transactions carry some risk

No financial transaction is completely, 100% risk-free, but ACH payments are a low-risk payment option. There are numerous internal controls protecting ACH transactions (even most U.S. federal government payments are made via ACH).

For any business, there is always some risk of phishing by bad actors. If you have clients who are not used to the online payment process, it may be helpful to provide step-by-step documentation on how to submit their ACH, as well as how to identify red flags for phishing scams, i.e., “We will only ever email you via _____.”

It’s important for your law firm to complete due diligence on any financial transaction platform. Tabs3Pay, for example, ensures PCI compliant and secure transactions, as well as additional security features such as restricted user access to client data.

How can law firms accept ACH payments?

Adding a new payment method can feel like an intimidating process. Thankfully, there are ways to streamline the process for quick and easy adoption:

• Choose your ACH provider, preferably one that specializes in law firm payment processing to ensure compliance. If you are already using Tabs3Pay, then you’re all set. Tabs3Pay offers ACH payments as an “eCheck” payment method for clients, alongside online credit card payments and trust accounting.
• Communicate this payment option with your clients. For new clients, this can be easily integrated into the onboarding process with notice regarding their payment options. For veteran clients, this can be an opportunity to let them know about ACH payments and answer any questions about the options.
• For clients who preferred writing checks in the past, this may not change moving forward. Some clients have well-established preferences. However, others may just be nervous about trying something new. Make sure to provide clear explanations and have resources on hand if they’re curious and want to learn more about the process.
• When you send out your monthly invoice, add a note alerting clients that they can now pay by ACH for fast, easy, and secure payment processing.

The verdict on ACH payments for law firms

ACH payments are an easy alternative to credit cards for firms that want to provide added flexibility for their clients. They are a streamlined, simple, and secure payment method.

For law firms looking to provide ACH payments, the best option is to work with an integrated legal billing system that offers both online credit card payments and ACH payments in one convenient place for your clients.

Tabs3Pay enables law firms to provide a simple and easy billing process for their clients, with options for credit card payments, ACH, and trust accounting. Tabs3Pay is part of the Tabs3 suite of fully integrated billing, accounting, and practice management tools designed to help law firms increase productivity and profitability.

Start your free trial or schedule a demo and explore how Tabs3Pay’s client- and law firm-friendly payment tools can benefit your practice.

Going paperless is a business strategy that offers a lot of benefits to law firms. Think:   

• More manageable billing workflows 
• Quicker payments 
• Reduced costs 
• Improved security 
• Greater client satisfaction 
• Reduced environmental impact

But if your law firm has been trapped in a cycle of printer paper, ink cartridges, and envelope-related paper cuts, where do you start?   

One of the best ways to reduce paper in the office is to start small. You don’t have to eliminate all paper use to quickly experience significant improvements.   

For many law firms, the most impactful switch comes with going to paperless invoicing. This switch comes with a few setup requirements, but once implemented, it provides a better overall invoicing experience for both your law firm and your clients. Here are five strategies to help you move to paperless invoicing with ease. 

1. Share the benefits of paperless invoicing with your staff and your clients. 

To make any change more effective, you have to convince others why they should also embrace change.   

For your clients, you can emphasize both the sustainability and convenience that comes with paperless invoices. Consider sharing the following facts:   

• The average attorney goes through 100,000 sheets of paper each year. That means the average lawyer consumes the paper of 10 trees in just one year.
   
• Even though most paper is recyclable, it still makes up an estimated 26% of waste in landfills. But it’s also a no-win situation; recycling paper actually uses more harmful fossil fuels than just throwing it in the landfill.
   
• For clients, the switch to electronic invoicing and online payments can save 6.6 pounds of paper and 171 pounds of greenhouse gas emissions per household, per year.
   
• When clients use online payments, they can keep their credit card on file and in some cases, automate payments entirely.

For your staff, you can add on some serious cost-saving benefits:  

• If you go through the average amount of paper for a law firm in a year, reducing paper consumption could save you $1,000 per employee, per year.
   
• Electronic invoicing alone can save companies $4–8 per invoice. With that in mind, a law firm with ten clients would save at least $480 per year by making the switch to paperless invoicing.
   
• Paperless invoices save on additional office costs including ink, toner, pens, pencils, and other associated office equipment such as binders, staplers, and three-hole punches. It all adds up.   

For employees, another significant benefit is the ability to work from home. With the right software, attorneys and staff can work on a more flexible office model, which is still a high priority for many employees.   

Software like Tabs3 is an important component of this; Tabs3 Cloud allows legal professionals to handle billing and payment tasks from wherever they work, thanks to secure and reliable cloud-based software.   

These points all help underscore the importance of switching to a paperless system, and why they should embrace the change as well.  

2. Budget properly to avoid any surprises 

When you make the change to paperless invoicing, there will be a few start-up costs. You may need to digitize existing documents and set up your client portal, which can take time and require purchasing the appropriate equipment or hiring someone to handle the work for you.   

Once this is done, you won’t have to pay for paper or stamps anymore, but the billing software you use may have a surcharge or processing fee. Depending on your budget and pricing model, you may consider passing on the surcharging fee to clients to help manage your costs.   

These fees might be relatively low (and much lower than the cost of paper), but you never want to be surprised by unexpected costs.  

3. Communicate with clients well in advance 

Effective change communication requires exposure and repetition. Some clients may embrace a less paper-heavy process, but others may be resistant to or confused by the changes.   

To make the change to paperless invoicing as smooth as possible, take the following steps to ensure your clients are prepared:  

• Send notices well in advance of the change explaining how processes will change, the timelines, and what to expect. 
• Encourage clients to reach out if they have any questions or concerns. Create an FAQ section on your website or draft a blog about the benefits of these new processes.  
• Include details about the electronic invoice process in any new client onboarding documentation.

Consider creating a marketing campaign around your new paperless invoicing philosophy. Leading up to the switch, create a few social media posts that help educate clients about what to expect. Email campaigns can be especially valuable in this context; craft a drip campaign with your legal client relationship management (CRM) software with reminders about timelines, processes, and how to get questions answered.   

Keep in mind that some clients may just be set in their ways and might insist on continuing with traditional invoice methods. It may benefit your firm to honor the billing preferences of legacy clients so you can preserve those relationships.  

4. Train your team on the new billing process 

It can be hard to navigate new processes and procedures even in the most intuitive systems. New features may have the potential to provide ease and flexibility, but if no one knows that the features exist or how to take advantage of them, you may not see the return on investment you’d like.  

For example, with Tabs3, law firms have the option to customize their online payments with many different features, including the ability to: 

• Process multiple invoices via batch billing
• Schedule automatic electronic prebills 
• Create payment schedules from a single payment to a payment series 
• Request trust deposits directly from the billing system 
• Create custom rates for any timekeeper for any client 
• Utilize alternative fee structures like contingency, split fee, flat fee, and retainers 
• Link automated timekeeping to attach billable hours to a client’s invoice

But how do you turn those customizations from conceptual benefits to real-time advantages for your firm?   

The answer is simple: Training!  

Schedule training sessions for both new employees and veteran staff to ensure they can fully navigate the system and build the most efficient workflow. Consider offering additional training whenever a new system feature rolls out.  

Another option for Tabs3 users is to work with an experienced Tabs3 consultant. These software professionals know Tabs3 tools inside and out and can help you create a tailored onboarding and training program for your team.  

5. Solicit feedback from clients and employees 

No news is not always good news. It may not occur to someone to provide feedback, but that doesn’t mean that they don’t have feelings about the change to paperless invoicing.  

Actively solicit feedback to provide both your clients and your team an opportunity to adjust the process. By creating an open communication channel, you can improve your client relationships by demonstrating your commitment to their experience. You also give your employees the opportunity to change or update workflows if they identify potential pain points for your team.  

Make the change to paperless invoicing with Tabs3 Billing 

Tabs3 Billing has everything you need for an efficient and effective paperless billing process.  

To learn more about Tabs3 Billing and paperless invoicing features, sign up for a Tabs3 demo.  

The legal profession, known for its adherence to tradition and precision, is experiencing a significant shift in how financial transactions are handled. Gone are the days when clients were content to pay by cash or check, waiting for banks to process these payments at a leisurely pace. Today, the demand for immediacy and convenience in all aspects of service, including payment, is undeniable. This transformation is driving law firms to adopt modern payment solutions, with law firm credit card processing emerging as a critical component in maintaining competitive edge and operational efficiency.

Modern clients are accustomed to the ease and security of digital transactions seen in other service sectors, and they now expect the same from legal service providers. This shift represents more than just a change in payment methods—it’s a fundamental evolution in the client-service provider relationship. The ability to pay instantly for services via credit card not only meets the growing client expectations but also streamlines the transaction process, reducing administrative burdens and enhancing the overall client experience.

The transition to digital payment solutions like credit card processing is facilitated by advancements in technology that ensure secure and efficient transactions. As law firms navigate this new landscape, selecting the right tools and partners for implementing these systems is essential. Law firm credit card processing platforms, such as Tabs3Pay, are specifically designed to meet the unique needs of the legal industry, ensuring compliance, security, and client satisfaction. This move towards integrated payment solutions is not just about keeping up with technology—it’s about taking proactive steps to future-proof law practices in a digital world.

 

Why credit card processing is essential for law firms

Law firm credit card processing offers many benefits that can directly impact your bottom line and client satisfaction. In an era where convenience and speed are paramount, providing a seamless payment experience is crucial. Here are a few key benefits of implementing credit card processing at your law firm.

Enhanced cash flow and reduced administrative tasks

For many law firms, managing cash flow efficiently remains a challenge. Traditional payment methods often lead to delays and increased administrative burdens. Implementing law firm credit card processing with solutions like Tabs3Pay can significantly enhance cash flow—studies show 30 to 40% improvements —and reduce the time spent on financial administration. Funds from credit card transactions typically settle quickly, meaning your firm can access earnings sooner than it would with check deposits.

Client satisfaction and growing expectations

The legal industry is no exception to the growing customer expectation for convenience in making payments, including for business transactions. Providing the ability to make payments by credit card helps meet that demand while also creating a simple payment experience that can be completed from any device.

Overall, accepting credit cards offers greater predictability and stability, opening up opportunities to proactively plan for your firm’s future based on more accurate financial projections.

Increased efficiency and reduced administrative burden

Processing payments via checks or cash can be cumbersome. It involves manual handling, trips to the bank, entry into accounting systems, and reconciliation processes—all of which consume valuable time that could otherwise be spent on billable legal work. Credit card processing automates much of this process. By integrating with legal billing and accounting software, like Tabs3Pay does, transactions are recorded and reconciled in real time. This automation significantly reduces the administrative burden and minimizes the risk of errors, allowing staff to focus on more critical tasks that directly contribute to their firm’s success.

Predictability and financial planning

Accepting credit cards provides a more predictable stream of income, a crucial factor for any law firm’s financial planning. With traditional payment methods, predicting when payments will be received can be challenging, complicating budgeting and financial planning. Credit card processing offers a more consistent and reliable timeline for receiving payments, facilitating better cash flow management and financial stability. This predictability enables law firms to plan with greater confidence, allocate resources more efficiently, and make strategic decisions based on reliable financial data.

 

How to choose the right credit card processing solution

Not all credit card processors are suitable for the unique needs of law firms. It’s crucial to select a service that understands and aligns with the legal industry’s standards. Here are a few key things to look for when selecting a credit card processing service.

Choose a service that is designed for law firms

General business credit card processors often do not cater to the unique needs of the legal industry, particularly around the management of Interest on Lawyers Trust Accounts (IOLTA) and compliance with the American Bar Association’s rules. Law firm credit card processing solutions must ensure that client funds are properly handled to avoid any impropriety or even the appearance of impropriety. For instance, transaction fees should not be deducted from trust accounts but from the firm’s operating account.

Data security and PCI compliance

Data security is paramount in any industry, but the legal sector faces particularly high expectations due to the sensitivity of the information they handle. Law firms must ensure that the credit card processing solution they choose is Payment Card Industry Data Security Standard (PCI DSS) compliant. This standard helps protect sensitive cardholder data from theft and misuse. Moreover, law firms should inquire about additional security measures, such as end-to-end encryption and tokenization, which can further protect client data from breaches.

Trust account management

Properly handling client funds is paramount in legal practice. Most general business credit card processors deposit funds and deduct fees from the same account, which can complicate trust account management. However, legal-specific solutions like Tabs3Pay are designed to deposit funds directly into the trust account while withdrawing fees from the operating account. This setup prevents the mismanagement of client funds, which is crucial for compliance and trust in legal practice.

 

Tabs3Pay: A credit card processing solution tailored for law firms

Tabs3Pay stands out in the crowded field of payment processing solutions by being specifically designed to meet the unique needs of law firms. This specialized focus translates into a host of benefits that directly address the operational, compliance, and financial challenges faced by legal professionals today. Here’s how Tabs3Pay offers a superior solution for law firm credit card processing.

Seamless integration with practice management software

One of Tabs3Pay’s most significant advantages is its seamless integration with Tabs3’s legal practice management software. This integration is critical for law firms as it allows for the synchronization of financial data across billing, accounting, and case management modules without any manual intervention. When a client makes a payment via Tabs3Pay, the transaction details are automatically updated in real time across all relevant systems. This saves time and reduces the potential for human error in data entry, ensuring accuracy in financial reporting and client billing.

Designed with legal compliance in mind

Tabs3Pay is built with a deep understanding of the legal industry’s regulatory environment. It ensures that all transactions comply with the American Bar Association’s rules and local jurisdictional requirements for handling client funds. Specifically, Tabs3Pay addresses the critical aspect of trust accounting. Unlike general business processors, Tabs3Pay automatically directs fees to be taken from the operating account while depositing client funds directly into trust accounts. This feature is vital for maintaining ethical compliance and safeguarding client monies, a cornerstone requirement in legal practice.

Enhanced client experience

Tabs3Pay enhances the client experience by offering a convenient and secure way to pay legal fees. Clients can pay from anywhere, at any time, using their preferred payment method, whether it’s credit card, debit card, or even ACH transfers. This flexibility improves client satisfaction as it aligns with the modern consumer’s expectations for quick and easy transactions. Additionally, the system supports mobile payments, which are increasingly becoming the norm in all transactions.

 

Learn more about Tabs3Pay

Tabs3Pay is part of Tabs3 Software, which means that if you want to sidestep double data entry by having your accounting seamlessly update with new payments, you can. With flat rate options and more, you can find an approach that works for your firm.

Learn more about the benefits of Tabs3Pay.To see firsthand how Tabs3Pay can benefit your law firm, request a free trial or schedule a walkthrough demo today.

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.

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.