February 1, 2006
E-billing Can Increase Law Firm Partner Incomes
In the January 3, 2006, edition of Law.com’s LegalTechnology, Michael Kraft and Robert Enholm ask the question "How long will it be before all lawyers undertake e-billing?” Michael stopped by the Juris booth at New York LegalTech yesterday and we talked a little more about the subject.
Just about every mid-sized law firm doing defense work has at least one client who requires e-billing. Most law firms consider that requirement to be a burden. That is understandable. Any exception to the normal and customary procedures followed by a business is disruptive and expensive.
What if e-billing was the norm and mailed paper copies were the exception? You might be surprised to learn that your present billing software has automatic electronic billing built in. I know that this is true for Juris software, and I would expect to see that capability in most full-feature law office business systems.
In the Juris system, law firms have the option at the client and matter level to indicate that the bill, after editing and approval, is to be automatically e-mailed to the law firm’s client in the format preferred by the client—PDF, html, rich text, etc. Copies of the electronic bills are retained in the Juris system so that the need for paper file copies of bills is eliminated, and the people-intensive process of printing, folding, envelope inserting and filing is eliminated. Postage and paper costs go away. The delay between when the bills are printed and the mailman delivers the bill is eliminated. It is faster, cleaner and cheaper, and the firm gets paid quicker.
For those firms who aren’t ready to make the plunge, consider using the built-in multiple copy features to automatically e-mail an information copy to the case or matter contact while sending a paper bill copy directly to the client’s accounts payable department for processing
E-billing is another tool for increasing per-partner income. Why not experiment by giving your new engagements the option to choose between e-mail and paper? In addition, discuss with that new client procedures to help your client process the firm’s bill for prompt payment. Explain that payment doesn’t eliminate their right to dispute charges. If the client is a business or organization, ask if you can send the payment copy of the bill directly to an accounting contact for immediate processing while providing an information copy for the legal contact’s review.
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Filed under Cash Flow Issues, Policies/ Procedures by Tom Collins