Understanding Financial Considerations

Posted on: 17 November 2020

Law firms often rely on legal billing consultants to guarantee that their accounting and financial systems are functioning correctly for the optimal benefit of the business. To accomplish this, legal billing consultants look at a firm's current accounting procedures to check for billing inconsistencies and to suggest more efficient ways of collecting or tracking client payments. Legal billing consultants also use analytical tools to help all kinds of firms maintain billing compliance and create automation whenever possible. Here are 3 of the top ways that legal billing consultants can work to ensure that your own law firm's fiscal goals are reached.

1) They confirm that you are billing properly for hours of work. 

In order to generate the right revenue for your firm, you must be certain to incur the accurate number of billable hours. Legal billing consultants examine this information for you to ensure that your firm is meeting precise billing guidelines. For example, your consultant will compare the invoices for a specific case against the actual work completed to validate that the data is free of errors. Legal billing consultants will catch various inconsistencies, including unnecessary fees, erroneous charges, and all potential billing mistakes that could arise. Ultimately, consultants will help give you peace of mind that you are compensated for the exact work that is being performed. 

2) They help to secure quicker payments from clients. 

Once you know that your invoices include accurate billable hours, it's essential that you get swift payments to keep your firm operating as usual. Any mistakes or discrepancies in an invoice can create added expenses for your firm and a delay in receiving the money that you are owed. Since most firms must first send their invoices to a bill review vendor before payment can be submitted, you must make sure that there are no problems with your processes that could delay the payment any further. A legal billing consultant will comprehensively investigate your invoices and offer solutions to eliminate issues that could hinder smooth payment. Additionally, if you are manually generating and tracking invoices, consultants can also help your firm incorporate automated methods instead. This will result in faster compensation and allow your firm to shift focus towards other elements of the business beyond worrying about getting paid on time.

3) They ensure that you are charging fair pricing to attract clients to your firm.

Sometimes law firms charge fees that aren't appropriate for the area. Failure to offer competitive rates will cause clients to look elsewhere for legal assistance. Legal billing consultants will advise your firm about the ideal prices you should charge for your particular services and in your geographic region. Knowing whether or not you should lower your current fees can make a big difference in bringing new clients to your firm. Fair pricing will also add to your reputation as a firm that is supportive of client needs. Clients will be more likely to recommend your services to friends and family if your rates are reasonable for your area.

To keep your firm financially healthy, consider all of the benefits described above that legal billing consultants can provide. Contact a legal billing consultant for more information.