Between tracking billable hours, retaining and invoicing clients, and complying with stringent legal and ethical requirements, law firms have unique and complex billing needs. Law firm accounts receivable management is an often-overlooked aspect of a practice’s financial health, and many attorneys do not have a proper procedure in place for invoicing and receiving payments from clients in a timely fashion.
At CPN Legal, we partner with law firms to identify and implement solutions that achieve maximum billing efficiency and drive profitability. We empower law firms to gain a detailed understanding of their financials and leverage their knowledge to scale their business. To learn more about invoicing management for law firms and our accounts receivable management services, consider connecting with our team at (513) 334-5076 today.
About CPN Legal
Our nationally recognized consultancy was first established in 2011 by Peggy and Chris Gruenke, two entrepreneurs with a passion for helping law firms grow and succeed through visionary accounting and bookkeeping services. Now, our robust team of CPAs, controllers, bookkeepers, and industry specialists partner with engaged lawyers who want to scale their practice and improve the efficiency of their business. We offer white-glove service and know all our clients by name, tailoring our accounting and bookkeeping strategy to meet their needs most closely.
Whether you are a solo practitioner, the owner of a boutique law firm, or anything in between, we are here to help. We implement cutting-edge technology and a range of law firm-specific accounting processes to improve efficiency in our clients’ businesses. Our team will effortlessly adapt to your unique workflow to identify areas of opportunity and drive efficiencies across your practice.
Our Comprehensive Invoicing and Law Firm Accounts Receivable Management Services
Invoicing and accounts receivable encompasses all the details of your business’s cash flow. Your invoicing and accounts receivable workflow practices have a substantial impact on your internal accounting systems and are essential for understanding your profitability.
- Invoicing best practices, workflow processes, and start-to-finish training. Your law firm’s cash flow is the lifeblood of your business. The cash flow management practices you implement will dictate your financial stability, growth, and your ability to make strategic decisions regarding your business. Having spent over a decade developing invoicing best practices and workflow processes, we can help you keep a pulse on your business’s health and better navigate financial challenges.
- Preparing and sending client invoices and past due notices. As an attorney, your focus should be on your clients and your legal practice. Invoicing management for law firms is complex and time-consuming, especially when juggling the demands of handling cases. Our team of experts will help you create an invoicing management process that is aligned with the needs of your law firm and your clients, ensuring that your firm’s success is always centered.
- Recording payments in systems like Clio & QuickBooks Online. By integrating these platforms, you can better manage tasks, track payments, and remind clients of outstanding balances.
- Monthly accounts receivable reporting and review. Generating up-to-date AR reports is one thing, leveraging these reports to maximize your business’s efficiency is another. We will provide you with up-to-the-minute data to ensure that your business operations are fueled by the most accurate information possible.
Invoicing and accounts receivable is best managed on a regular and routine basis, which is why we facilitate ongoing communication and monthly checks with all our clients. As your firm continues to grow, continuous review of your internal process is key to scaling your business as efficiently as possible.
What Are Common Challenges Associated with Accounts Receivable Management?
No one said that accounts receivable management is easy. In fact, it is one of the most tedious and challenging parts of your business operations. A weak accounts receivable management process can have a range of unintended consequences, such as:
- Late and unpaid invoices, which can have a crippling impact on your cash flow.
- High Days Sales Outstanding (DSO). If this KPI is higher than average, you may benefit from outsourcing your law firm accounts receivable management to better understand your cash conversion cycles and optimize your cash flow. Offering additional payments options or streamlining your payment collection strategy can be valuable tools for lowering your DSO.
- Ledger disorganization. Having organized client ledgers is key to knowing how much money you are owed, who owes it, and when they are expected to pay. Disorganization can lead to cash flow deficiency, and our team will help keep your information centralized and implement the end-to-end tools necessary to improve ledger management.
- Poor client communication. Establishing clear and effective communication channels is crucial for timely payments. At CPN Legal, we help law firms take advantage of automation tools to create invoicing schedules and maintain constructive communication with clients.
How Can Systems Like Clio Help with Invoicing & Accounts Receivable Management Efficiency?
Systems like Clio can help with invoicing and accounts receivable management efficiency by streamlining and automating processes that would typically be handled by you or your team. Relying on manual interventions can quickly bog you down in administrative work. By automating the invoicing process as well as all follow-up correspondence, you can dedicate more time to building your business.
What Are the Benefits of Outsourcing Your Accounts Receivable and Law Firm Invoicing Management?
After working alongside countless attorneys and law firms across the country, the benefits of outsourcing law firm accounts receivable management are verified by the numbers. After partnering with our accounting and bookkeeping team, our clients have seen cost savings, increased efficiency, and improved cash flow in their business.
On the client-facing side, many attorneys report having more time to dedicate to their clients, helping to build important relationships and establish their reputation in the market. Outsourcing your accounts receivable and invoicing management also helps to ensure compliance with all state bar rules and regulations.
Hiring CPN Legal to Support Your Law Firm’s Invoicing and A/R Management
As an attorney working to grow their law practice, you understand the value of your time. Our services are designed for ambitious, engaged lawyers who wish to increase revenue and make strategic decisions regarding their business. At CPN Legal, our law firm accounts receivable management experts will review your goals and priorities to help you optimize your financial processes and develop your firm. To learn more about how we can support invoicing management for law firms and A/R management, consider connecting with us at (513) 334-5076 today