Are you a lawyer that offers financing options to clients who need help paying?
If that sounds like you, your accounts receivable collections are essential and should work effortlessly. Legal financing is becoming popular and necessary for people who need help but cannot afford it. Thankfully, there are different ways that you can improve your firm’s billing services to help serve your clients better.
It’s crucial to improve your accounts receivable when you want to provide the best legal services to your clients.
Why Accounts Receivable Matters
Accounts receivable is the most significant thing that your law firm needs when you offer to finance.
Stay Organized
The best part of having a well-functioning accounts receivable system is that it will keep your business organized.
Different automated accounts receivable software like Denefits can take all your client’s accounts and keep their information in one place. Automating your payment management and collection with software can help you stay organized. They will also help ensure your clients pay on time, so you do not have to worry about that.
When using the right system, you can focus on helping clients win their cases while managing your finances properly. Your firm can operate smoother and continue satisfying clients with the attention you can give them.
Less Stress
Organizing your accounts receivable can allow you to stress less in your daily operations.
Well-established accounts receivable software helps you work less because you do not have to worry about your finances. These tools allow you to set up automatic payments for clients and notify them when their payment is due.
Instead of sending your staff to collect client money, you can partner with companies that will do that for you. Collections are a headache already, so having another company handling them for you is a huge help. Stressing less is ideal for helping clients have a fantastic experience working with you.
Better Financing Experience
When you are organizing your accounts and stressing less, you can offer a better financing experience for your clients.
First and foremost, creating a better experience for your clients is the best way to prove yourself in your field. If you offer a more beneficial financial experience than your competitors, you will be the better option for your clients. Everyone will know that you can help them in their legal pursuits while they have payment options.
The fastest way for you to offer a good financing experience is by implementing better accounts receivable software. The more resources you have to present to clients, the more successful you will become.
How To Improve Your Accounts Receivable
There are many ways you can improve your accounts receivable software/system to make your law firm better.
1. Offer Flexible Payment Options
Improving your accounts receivable can all start with the flexibility of payment options you offer clients.
You can choose to offer different loans and payment plans that work with each client’s situation. These unique options open flexibility to your clients, so they have more options to pay. Different options show them that you will work with them to get them the best service possible.
- Loans are a standard option for people to use when they need help paying for services quickly. A personal loan is a good option for clients that require legal counsel and cannot afford it. Some loan providers will even partner with your firm to offer loans to those that need assistance.
- Another option you can offer your clients is payment plans, an alternative to the standard loan. With payment plans, you can partner with lenders to provide them directly to your clients. Many of these plans have fewer restrictions, meaning you can finance more people that need your services.
Whether you use payment plans or loans, you can provide more flexibility for your clients to pay for their needs.
2. Be Upfront About Paying
When charging clients, you need to be upfront about the money they will owe you for your services.
One way for you to be upfront about the amounts they owe is to send invoices consistently. Giving out invoices to your clients makes your pricing very clear and allows them to plan for their payments. Then they can plan to find a loan, payment plan, or other option that will let them pay quickly.
Also, being clear about your fees from the beginning is essential to creating good client relationships. You want them to know from the start that they need to pay you, so it is not a shock when you send invoices. If you are upfront about payments, then clients will trust you and know you are being honest about the price.
Even when asking someone to pay may seem awkward, you must continue operating. Being upfront about the price is best, so there is less awkwardness when they need to pay.
3. Use Scheduled Payments
Utilizing scheduled payments with your clients can transform how you handle your accounts receivable.
Clients can make payments easier when they automate them to come out on a schedule. Then, those people are less likely to miss a payment and can help you stress less about collecting their money. That will also improve your practice’s accounts receivable since you do not have to gather their cash in person.
Automating payments is convenient for your clients since they can link their credit or debit cards to their accounts. It makes it easier for them not to forget to pay since the money will automatically come out. Nobody will miss a payment as long as your client’s schedule is in your system.
You must counsel your clients to consider automatic payments to improve your accounts receivable. When you make it easier for them to pay, they will have less of an excuse to default.
4. Make Sure Your Software Is Up-to-Date
If your software is not updated, it might not operate correctly and mess up your entire system. It could miss payment deadlines and forget to notify you and clients when a payment is due. A payment notification might cause someone to miss one or pay late, causing more issues.
To improve your accounts receivable, you must confirm that your software is current and up-to-date.
You can always check in with the company to ensure that yours is up-to-date. It is easy to check this and worth it for your firm to ensure everything is running smoothly.
Old systems can also make your life more stressful because you will have to pay much more attention to them. The system software should work without much supervision, so it is easy to focus on your tasks. Keeping your entire system running is critical to improving your services for your clients.
5. Build Healthy Relationships With Clients
You can have more success by creating healthy relationships with all your clients.
A great place to start is communicating with them effectively so that they know you well and feel comfortable.
If you are clear with them and communicate effectively, you can avoid all the problems that may arise. Being upfront about payment is good and will help your clients to know what you expect of them.
Effective communication is beneficial when you aid people with cases that could hugely affect their life. Most of the time, they are already nervous about their legal proceedings, so any update you can communicate to them is helpful. Good or bad news, you need to make sure you establish that clear communication with them.
You can also work to create healthy client relationships by aiding them when it comes time to pay. Allowing them to pay you back over time, take a loan, or negotiate the price can significantly help your clients. Having flexibility is key to creating better relationships.
Upgrade Your Account Receivable Software With The Best
Finance clients and see your law firm grow with all-inclusive accounts receivable software like Denefits.
Here’s why it is perfect for you!
Denefits is a payment solution software that provides payment plans to all your clients. Using Denefits, you can guarantee financing to every client because there are no soft or hard credit checks. You can create flexible payment plans for every person you help, no matter their financial situation.
While Denefits offers financing plans, accounts receivable software is also available to help manage your finances. Denefits also offers:
- Payment processing
- API integration
You can finance every client and integrate these financing services into your website while improving your accounts receivable. Stay assured because Denefits guarantees all your payments.
Start improving your law firm’s billing department by downloading the Denefits app now
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