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.

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.

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.

Six Ways Your Law Firm Can Speed Up Payments
Getting paid in a timely manner supports fair compensation for attorneys and staff, but it also allows law firms to expand and enhance services, pursue essential continuing education, cover overhead expenses, plan for the future, and more.   

But when law firms aren’t paid in a timely manner? It can be a major problem.   

When fees and invoices go uncollected and realization rates drop, it pumps the breaks on profitability, cash flow, and growth goals. 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. Here’s where you can start.  

 

Developing and communicating payment policies 

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
  • 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 

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.  

 

Offering 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.  

 

Increase your 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
  • 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. 

Credit Cards: Boosting Bottom Lines & Customer Satisfaction Through Tabs3Pay

It turns out that not all trends are cyclical. Cash? Check? Like it or not, these forms of payment are going the way of the abacus and the typewriter.

Although there are good reasons to be cautious about adopting new technology, payment processing is one area where it pays to be ahead of the curve. After all, anything a firm can do to increase billable hours, reduce administrative work, and accelerate accounts receivable is good for the bottom line.

It isn’t only about improving internal workflows, either. Accepting credit cards also improves client satisfaction at the same time that it increases profit margins.

That’s why Tabs3 Software is excited to announce we’re now offering a built-in credit card processing feature, Tabs3Pay.

A valuable tool for law firms

Credit card processing, when implemented correctly, can add enough of a lift to key areas of a law firm’s success to create a competitive advantage.

Cash flow and processing time

Having an online payment option reduces the number of steps needed to make a payment, which increases the likelihood of clients paying quickly. In fact, the legal industry has become increasingly aware that accepting credit cards improves cash flow by 30 to 40%.

A few other benefits: credit card deposits often hit your bank account faster than a check, and you’ll save on the administrative time it takes to process other payment methods.

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.

Getting legal-specific

When selecting a credit card processing service, it’s important to select a software specifically designed for legal clients.

Running your payments through a certain processor puts the pressure on them to make sure the transactions are secure, but you still have an ethical responsibility to verify what that process is. Check if the processor is certified as PCI compliant. Your firm should also vet how information is being stored to ensure privacy compliance.

Don’t forget to ask about how trust accounting is handled. Most credit card processors deposit funds into the same account from which they withdraw the transaction fee, which can land a law firm in serious trouble.

Although this practice isn’t a big deal for non-legal companies, if the account in question is a legal client’s trust account, then the transaction fee has just been paid by the client, not the lawyer. Even if you act quickly to transfer the amount from your operating account, you’ve technically already accessed client funds.

To avoid these issues, legal-specific processors like Tabs3Pay are set up to deposit charge funds into the trust account and withdraw transaction fees from the operating account. We also protect you from similar issues with voids and chargebacks.

Likewise, we can handle your firm having more than one client trust account. After all, we’ve designed our software specifically for lawyers!

Craft your own approach

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.

Visit our site to learn more about the benefits of Tabs3Pay.