As modern technological advancements reshape various traditional services, billing practices in law firms have remained predominantly static, with many firms still relying heavily on paper checks for payments. This antiquated practice can often hurdle timely payments, impacting the firm’s liquidity and the client’s ability to blot their debt.
When it comes to payment options, variety is the key, as observed from my personal experience both as a lawyer and as a client. While launching my law practice, I aimed to alleviate the payment process’s typical stress points, leading to the realization that multiple payment channels precipitate prompt payments. Surprisingly, many law firms, especially smaller ones, limit their payment channels, retarding their cash inflow.
As a client, the payments made to my lawyers were always through checks mailed to their offices. For somebody more accustomed to an envelope-free life, this posed a unique challenge. Apart from the unusual task of physically mailing items, the scarcity of check leaves, which took a significant time to refill due to underutilization, often delayed payments.
This was a clear indication of an outmoded payment process since, as a lawyer, I consider prompt payments very crucial. And I couldn’t help but wonder how a typical client, unfamiliar with the importance of on-time remuneration, would manage to pay on time when limited with just the check option.
When I began my journey as a lawyer, I vowed to offer clients the simplest possible means to settle their bills. My firm provides a variety of payment channels—clients can mail us a check or, more conveniently, pay through credit card. The invoices are aligned with a QR code and a link allowing seamless payment within seconds. Typically, those favoring the credit card mode make swift payments post-invoice generation.
True, credit card companies charge hefty fees, absorbed by my firm, sacrificing a fraction of the client’s bill. However, the convenience this mode offers far outweighs the drawbacks. Some well-informed clients prefer bank transfers—another manageable payment method without the high fees charged by credit cards.
Undeniably, varied payment options won’t completely solve a firm’s debt collection issues. Yet, the more straightforward lawyers make it for clients to pay, the sooner the bills will be settled. Echoing similar sentiments, Jordan Rothman, a partner at The Rothman Law Firm and the founder of Student Debt Diaries, envisions a future in law firm billing practices that align with modern technological conveniences.
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