The exemplary electronic billing tool can improve the cash flow of your business.

Cash flow is essential to any business’s success, including law firms. It is necessary to send an invoice and receive prompt payment. There is always room to improve the work-to-pay process in any law firm.

Collecting timely payments from clients can take time, whether it’s due to internal delays in getting the invoice out or client pushback over specific line items. A comprehensive law firm electronic billing solution can help streamline the payment process in either case.

A unique challenge in e-billing for law firms

Outside counsel guidelines (OCGs) are frequently used by law firms that work with corporate legal departments to determine which services can be billed and which cannot. It is essential to adhere to these rules to get invoices paid as quickly as possible.

Failure to follow the rules, knowingly or unknowingly, can also negatively impact essential client relationships. In most cases, keeping track of all the rules takes time and effort.

Scott McCarthy, CEO of SMS IT Group, a compliance and IT firm based in Los Angeles, serves many organizations, including law firms. He explained that “the rules around which items are billable are becoming more complex.” Many companies are trying to find a way to keep track of all the rules and enforce them electronically. I’ve been working on this problem for a half-year and still need to find a solution.

Clearing the way to streamline electronic billing

What would benefit law firms from automating the verification process for billing a particular item? How much time would they be able to save?

Recent enhancements in some legal billing software have allowed firms to double-check proposed billable items before they send out the final invoice. This can be done during the proforma stage and even when entering the time.

The ability to upload all of the client’s billing rules and then automatically check for non-compliant items is the most considerable improvement in the legal billing software. These improvements allow firms to send accurate invoices with minimal client pushback.

Spend less time, increase cash flow, and improve relationships.

By investing now in the best e-billing solutions, law firms can instantly produce invoices that are OCG-compliant. These solutions will increase the likelihood of invoices being paid quickly and without much opposition. Consistent payment of compliant bills builds trust and strengthens the client relationship.

It is time that law firms start seriously considering a comprehensive electronic billing solution.

Thomson Reuters eBillingHub streamlines the invoicing process for firms and reduces payment cycles. Request a demonstration today and learn how eBillingHub will benefit your business.

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