The legal industry, from large law firms to private corporations and solo practitioners to small businesses is extremely complicated. This complexity has resulted in a variety of business challenges which can impact profitability including accounting and billing issues. Controlling invoices as well as reconciling trust account transactions and tracking billable times can take the focus away from other important aspects that are critical to a practice’s success. A survey conducted by MyCase in 2021 found that 61% of practitioners find it difficult to keep track of billable hours.
Offering clients multiple payment options is an option to get paid faster. This includes accepting credit cards, which can be beneficial for both parties and help speed up payments. It’s also a good idea to offer discounts and rewards for customers who are loyal, as this could increase retention rates.
Another method to increase profits is by increasing efficiency and ensuring that every dollar counts. This can be done by offering fixed-fee services for a small number of cases, or cutting down on overhead with technology like document automation as well as texting and video communication.
Finding a qualified expert is essential however, it’s equally important to have the proper legal support tools in place. This includes the use of a CRM system for attorneys to manage client data and an IT security partner who protects sensitive data. It’s also vital to conduct a conflict check for any potential expert to ensure they do not have a competitive connection to a particular person or institution, parent company or a defendant company.