Tabs3 Practice Management Blog for Law Firms

As many as 18% of Americans don’t use credit cards at all. Others may not want to use credit for large invoices. But even if your client doesn’t want to use their credit card, they may still prefer the convenience of online payment compared to paying their bills by cash or sending checks in the mail.

For today’s law firms, modern payment solutions have to offer clients flexibility. Thankfully, there are solutions that can accommodate this need for flexibility while providing significant benefits to both the client and your law firm. One particularly effective option is ACH payments.

What are ACH payments?

ACH, which stands for “automated clearing house,” is a type of electronic payment in which a transfer is made directly from a bank or credit union.

ACH payments allow law firms to:

• Accept payments online
• Automate your billing system
• Provide an alternative payment system to credit cards or checks

ACH payments are becoming increasingly common in today’s payment landscape, even if we don’t always realize it. Examples of ACH payments include your employer depositing your paycheck via direct deposit, and when you set up an automatic bill payment directly from your bank account.

What are the benefits of accepting ACH payments?

From convenience to cost, incorporating ACH payments into your list of payment options can benefit both the client and the law firm. Consider these factors when weighing whether to add ACH to the list of your law firm’s payment methods.

How ACH payments benefit your law firm’s clients

For clients, ACH payments offer a convenient alternative to credit card payments.

If your clients are among the 18% of Americans who don’t use credit cards, then ACH payments provide an avenue for them to take advantage of online bill payments, which are typically faster and easier than payment by cash or check.

ACH payments are also:

• Safe and secure, with a more predictable arrival time compared to snail mail
• An easy form of contactless payment
• A reliable way to reduce paper usage for both environmental and cost purposes
• Convenient for clients who do not want to add to their credit card debt

Finally, unlike credit card payments, ACH payments do not require a surcharge. For clients who have a fixed budget or need to manage their costs, this can be an appealing benefit.

How ACH payments benefit your law firm

Similar to online payments via credit cards, ACH payments provide fast and easy payment options for your law firm, saving you both time and money.

• ACH payments save time: Facilitating online payments with an alternative to credit cards can encourage clients to pay online who might previously have relied on check or cash payments. This reduces the number of administrative tasks to complete every month, freeing up time for more important tasks.

• ACH payments save money: When clients have a payment option that fits their needs and constraints, they are more able to pay on time, in full. This leads to more on-time payments and fewer collection calls.

Are there any drawbacks to ACH payments?

ACH payments are growing in popularity thanks to their numerous benefits to law firms and clients. But what about the drawbacks?

All financial transactions carry some risk

No financial transaction is completely, 100% risk-free, but ACH payments are a low-risk payment option. There are numerous internal controls protecting ACH transactions (even most U.S. federal government payments are made via ACH).

For any business, there is always some risk of phishing by bad actors. If you have clients who are not used to the online payment process, it may be helpful to provide step-by-step documentation on how to submit their ACH, as well as how to identify red flags for phishing scams, i.e., “We will only ever email you via _____.”

It’s important for your law firm to complete due diligence on any financial transaction platform. Tabs3Pay, for example, ensures PCI compliant and secure transactions, as well as additional security features such as restricted user access to client data.

How can law firms accept ACH payments?

Adding a new payment method can feel like an intimidating process. Thankfully, there are ways to streamline the process for quick and easy adoption:

• Choose your ACH provider, preferably one that specializes in law firm payment processing to ensure compliance. If you are already using Tabs3Pay, then you’re all set. Tabs3Pay offers ACH payments as an “eCheck” payment method for clients, alongside online credit card payments and trust accounting.
• Communicate this payment option with your clients. For new clients, this can be easily integrated into the onboarding process with notice regarding their payment options. For veteran clients, this can be an opportunity to let them know about ACH payments and answer any questions about the options.
• For clients who preferred writing checks in the past, this may not change moving forward. Some clients have well-established preferences. However, others may just be nervous about trying something new. Make sure to provide clear explanations and have resources on hand if they’re curious and want to learn more about the process.
• When you send out your monthly invoice, add a note alerting clients that they can now pay by ACH for fast, easy, and secure payment processing.

The verdict on ACH payments for law firms

ACH payments are an easy alternative to credit cards for firms that want to provide added flexibility for their clients. They are a streamlined, simple, and secure payment method.

For law firms looking to provide ACH payments, the best option is to work with an integrated legal billing system that offers both online credit card payments and ACH payments in one convenient place for your clients.

Tabs3Pay enables law firms to provide a simple and easy billing process for their clients, with options for credit card payments, ACH, and trust accounting. Tabs3Pay is part of the Tabs3 suite of fully integrated billing, accounting, and practice management tools designed to help law firms increase productivity and profitability.

Start your free trial or schedule a demo and explore how Tabs3Pay’s client- and law firm-friendly payment tools can benefit your practice.

Getting documents signed can be a significant bottleneck for attorneys. Traditional methods of signing, such as printing, mailing, and faxing documents, are not only time-consuming but also prone to errors and security risks. Just as challenging are the delays that can arise in document execution; these can create significant stress for attorneys and clients alike. However, with the introduction of eSignature technology, law firms have found a more efficient and secure way to get documents signed.

In recent years, consumers have grown more aware of and accustomed to the option for electronic signatures. As a result, many legal clients now expect to review legal agreements and add secure eSignatures.

Rather than being seen as an advanced feature, eSignature and secure file sharing are now an industry norm. If you aren’t making plans to accommodate these demands, you risk falling behind competing firms with your client acquisition and retention.

Six perks of eSignature for law firms

Law firms that offer their clients the option to sign documents digitally enjoy the following benefits:

1.   Fewer signing errors

There’s nothing worse than having to reprint a lengthy legal document because the client signed on the wrong line, or realizing at the last minute that someone missed a signature deep within a legal agreement. These types of errors are not just frustrating—they can also seriously disrupt your legal workflow when they occur across several client matters.

Your software should guide your clients to clearly-marked areas designated for their signatures to minimize or eliminate signing mistakes. Firms that go paperless can reduce their processing errors by an average of 90%.

2.   Greater security

Despite what you may have believed in the past, eSignature technology actually offers more layers of security than sending legal agreements via email or the postal service. Specialized encryption tools, knowledge-based authentication (KBA), secure file sharing, and secure links protect clients’ data security and uphold the legal industry’s strict ethics and compliance regulations.

Using eSignatures doesn’t just protect clients’ data security online. Working with digital document management and obtaining client signatures electronically means that legal documents are also protected in the event of a fire, flood, theft, or other physical threat.

3.   Smoother workflows for attorneys

Don’t waste billable hours checking calendars with your clients via phone or email tag to book in-person appointments. Obtaining pen-and-ink signatures isn’t necessary with the right eSignature software, and it saves you hours.

With the right legal technology on your side, your attorneys can send a secure client signature request via email in just a few minutes and then move on to their next billable task.

4.   Client convenience

Simplified legal workflows benefit clients, too. Few clients look forward to sitting in traffic to sign legal agreements. Even if they don’t have to head to your office to sign, pen-and-ink signatures can be a hassle when you consider the time it takes to print, sign, and scan or even fax signed documents.

Secure eSignature software significantly reduces the time clients spend reviewing and signing documents. Adopting eSignature technology is one way to show your clients how much you value their time, convenience, and security.

5.   Lower costs and waste

A single sheet of paper doesn’t cost much on its own, but office supply costs add up quickly when you consider just how many pages of legal agreements attorneys need to print (and sometimes reprint) in a day.

The average office worker in America can go through thousands of sheets of paper per year. At 5 to 15 cents per page, the potential savings of switching to digital document management and eSignatures are significant, not to mention the paper waste that can be saved from the landfill.

6.   Faster turnaround

Implementing secure eSignature tools at your law firm can drastically decrease the wait time for signed documents. Aside from minimizing the hours attorneys spend requesting and collecting client signatures by phone and in person, taking the digital approach diminishes turnaround time by 80%.

The validity of eSignatures

Despite these clear benefits, some attorneys remain concerned about the validity of eSignatures and whether they hold up in court as well as paper legal documents.

The enactment of the Electronic Signatures in Global and National Commerce (ESIGN) Act in 2000 made digitally signed documents legally binding. This made requesting eSignatures a viable prospect for law firms almost a quarter of a century ago.

Per the ESIGN Act, digital signatures are just as legally binding as pen-and-ink signatures, as long as the signing individual:

• Accepts a clause to conduct business electronically
• Is provided the option to sign with ink and paper instead
• Demonstrates a clear intent to sign
• Receives a copy of the completed document (along with all other signers)

In addition, the attorney must maintain a clear audit trail and/or record documenting how and when they obtained the client’s signature, something that they can do easily with the right eSignature solution.

Streamline your legal workflows with Tabs3

Tabs3 offers software solutions tailored for law firms, featuring advanced eSignature capabilities through LexSign. This functionality enables attorneys to send secure eSignature links directly from their email, allowing clients to sign documents conveniently by either drawing their signature or typing it, even on mobile devices.

Tabs3 supports your firm’s paperless operations with PracticeMaster, offering customizable templates for legal documents that auto-populate with client data. Document management tools simplify the organization and retrieval of files from familiar and widely-used formats like Word and Excel. The system includes a search feature for quick document access and maintains a detailed document history for compliance with the ESIGN Act.

If your firm is looking to update operations and embrace digital efficiency, request a walkthrough demo with one of our product experts today.

In the fast-paced legal industry, time is not just money—it’s the backbone of efficiency and client satisfaction. Embracing legal workflow automation within your practice isn’t just a trend; it’s a strategic approach to redefining how your firm operates for the better. This comprehensive guide delves into the nuances of legal automation for law firms to help you better understand what automation is, its benefits, what to automate, and what process you shouldn’t automate.

What Is Legal Automation?

Legal automation involves the application of technology to automate complex, time-consuming tasks that traditionally require manual effort. In our practice management software, PracticeMaster, we call these automations WorkFlows. Using WorkFlows, we’ve seen firms realize substantial time savings, such as a reduction of 33% in time spent processing paperwork. They work based on a simple if/then principle: “if” a trigger event takes place, “then” actions can begin. Using automations streamlines time-consuming processes.

One popular automation in legal services is document assembly. By identifying frequently used legal documents, such as fee agreements and contracts, you can set up document templates in the software. Each template has designated fields, such as name and contact information, sometimes called variables or conditional text, which represent case data. Save your templates in the software and select them as needed. With WorkFlows, after you enter a new client into the system, document assembly can begin with client data already filled in. Templates can include additional prompts, like entering a fee for billing or setting a calendar appointment with a client.

Benefits of Legal Automation

Embracing legal workflow automation within your law firm can have many benefits that extend beyond just time savings. Some of the main benefits of embracing automation include:

• Improved Efficiency and Productivity: Automation streamlines repetitive tasks, freeing up time for higher-value work, which improves overall firm efficiency and reduces human error.
• Enhanced Client Experience: Faster response times and personalized interactions through automation lead to a smoother client journey and increased satisfaction.
• Cost Reduction: Initial investment in automation technology pays off with significant long-term savings by reducing the need for manual labor and minimizing errors.
• Data Security and Compliance: Automation tools enhance data handling practices, ensuring sensitive information is secure and compliance with regulations is maintained.
• Scalability: Automation allows law firms to handle growth efficiently, scaling operations without the need for proportional increases in staffing.
• Competitive Advantage: Adopting automation positions your firm as innovative, attracting clients looking for efficient and modern legal services.
• Insightful Data Analytics: Legal automation tools provide analytics for deeper insights into operations, helping to make informed decisions for improvement.

When to Use Automation

The best kind of tasks to automate are ones you do regularly. Think about the goals you want to achieve by streamlining your firm’s processes. Meet with your office administrator or billing clerk to learn about their time-consuming or repetitive tasks, and make special note of redundancies like duplicate data entry. Review how you enter time, enter new client information, and communicate with clients. Don’t forget about billing and payment collection. To start, focus on finding tasks that take a long time, or things that are done the same way every time.

Identify two or three key things to automate, then implement them. As your team becomes more comfortable with setting up and running automations, you’ll find more opportunities to automate. Not sure how your software’s automation tools work? Reach out to a consultant or your software’s support team and ask how they can help.

What Not to Automate

Not everything can or should be automated. Processes need to be predictable for automation to work. Unique documents or anything that requires individual consultation, decision-making, or collaboration are not good candidates for automation. Until we figure out a way for computers to become more human, personal engagement and conversations about your client’s situation are what make your firm different from others. Those are your personal and professional skills that can never be automated.

Take Advantage of Available Resources

Automations may seem overwhelming, but don’t fear the work involved in setting them up. Take advantage of the tools available, and your firm will reap the rewards of the higher level of efficiencies. Saving time does not mean losing billable time. Automation allows you to spend more time with your clients, find additional clients, and plan for your firm’s future.

Invest the time to review all of your processes. Find out what your software’s automation capabilities are. Implement what you can now, and set up a plan for future automations. Although you’ll spend more time early on with automation research and setup, you will never regret the time you will save.

Embrace the Future of Legal Practice with Tabs3

Legal automation offers a transformative opportunity for law firms to enhance their operational efficiency and service quality. By adopting a moderated and strategic approach to automation, law firms can leverage technology to not only save time but also to foster growth and innovation within their practice. As we continue to navigate the complexities of the legal industry, automation will undoubtedly play a pivotal role in shaping the future of legal practice.

For more information on automations in PracticeMaster, check out our WorkFlows Guide. To learn more about how document assembly works in PracticeMaster, watch this video: Intro to Document Assembly.

“That’s just the way we’ve always done things.”

It’s a common phrase used in offices around the world.

But even if a solution worked for your law firm five or ten years ago, that doesn’t mean it’s the best solution today. The legal field is changing, with new technology disrupting old ways of doing business.

Maybe it’s time to ask a more fundamental question: is your legal software still the best system for your law firm’s needs?

What the right legal software should do for your law firm

Legal software, at its core, is designed to make running a law practice easier. Beyond general practice management features, the right legal software should provide:

• An intuitive interface
• Automated time tracking
• A flexible billing system for fast, easy invoicing
• Online payment options for clients
• Robust reporting options to understand and track your KPIs
• Trust accounting tools
• Additional capabilities, such as a legal CRM integration

These features reduce pain points in legal workflows and make your life easier. That said, even legal software with all the bells and whistles may not be the right choice for your firm if you don’t see results, or worse, if you dread using it.

So, if you have a nagging sense that says, “Is it time for a change?” Here are some signs that you may be ready for a new legal software solution.

6 signs that it’s time to say goodbye to your current legal software

When you’re focusing on client case matters, it’s hard to examine other aspects of your law firm, such as business administration. But making a change now could save you significant time and money down the road.

Here are six indicators that you may benefit from new legal software.

1.   Your software doesn’t actually save you time on daily tasks

Every business seems to have that one system that makes tasks more difficult, for no apparent reason. If that’s your legal billing and practice management system, then you may have a big problem.

Legal software solutions should save your time on daily tasks by making your to-do list faster and easier to accomplish.

For example, a time-saving legal billing software may:

• Provide automated time tracking within the billing system to semi-automate the client invoice generation process.
• Complete 3-way reconciliation to balance your trust accounts.
• Run detailed reports, like an Accounts Receivable by Timekeeper Report, to understand which attorneys may need collections assistance.
• Provide back-ups and auto-recovery to protect your data from any unexpected power outages or network disconnection.

On the other hand, clunky systems can make your daily tasks even harder than they need to be.

• Do your software systems integrate? Or do you have to switch between systems to accomplish a single task?
• Is it difficult to get a birds-eye view of your accounting activities?

If you said “yes” to either of these questions, then it may be time for a change.

2.   Your team can’t access key software functionalities while working remotely

Most legal professionals say they prefer a flexible work model where staff can work remotely and come into the office a few days a week. With many law firms working from home, it’s critical that your legal software is flexible and can adapt to remote work without compromising on functionality.

Many legal software options without cloud capability are difficult to adapt to a hybrid work model. There may be security issues or system glitches. It may be difficult to tackle key tasks without complicated workarounds or phone calls to colleagues asking them to email you instead.

These complications can delay progress, cause frustrations within teams, and disrupt processes, all avoidable outcomes when you have software that adapts to your working conditions.

3.   Your software doesn’t get regular updates

There are two types of updates that legal software should receive regularly:

• Security updates
• Functionality enhancements

Security updates ensure that, as the broader technological ecosystem evolves, your legal software evolves with it. They patch system vulnerabilities, protecting both you and your clients. If your legal software hasn’t been updated since 2020, you may have significant risk exposure.

Functionality updates are just as critical. If your software never provides new features or if it never makes any changes, that may indicate that it doesn’t consider user feedback. Legal software is supposed to make your life easier, so developers should constantly be searching for better, easier ways to accomplish tasks.

The world is changing quickly, and you don’t want to get left behind.

4.   Your software isn’t able to grow with your firm

Most law firms aim to add new clients and increase revenue. However, growth requires adaptability in both processes and tools.

As your law firm expands, your software should be able to keep up. What this looks like can depend on your firm’s unique goals.

If you’re in a growth cycle, for example, you may need legal client relationship management (CRM) that can improve your intake process so staff aren’t overwhelmed. If you want to improve attorney utilization rates, your firm might benefit from customizable workflows to reduce manual tasks or enhanced reporting that can identify bottlenecks.

The key takeaway: if your legal software doesn’t scale with you, it’s time to consider one that will.

5.   Your firm is still spending thousands of dollars on a paper-heavy billing process

Is your firm still relying on a paper-heavy prebill process or even a paper invoicing and payment system?

A paper-heavy billing workflow could be costing your firm thousands of dollars each year in paper, toner, ink, printers, and other office materials. Not to mention, paper billing processes expose your firm to human error and significant time delays in receiving client payments.

If you’re ready to reduce costs, process payments faster, and be a little more environmentally friendly, it may be time to look for new legal billing software.

Tabs3 Billing has everything you need to send bills quickly with paperless invoicing. The end result is an easier billing process, a better client experience, and more time for you to focus on your clients’ case matters.

6.   Your legal software support team is lackluster

There are plenty of software options out there that have near-invisible support teams. This isn’t a problem until you have a problem, and then it’s a big issue.

Your software’s support team can make or break your experience with a product. So why are you settling for a reluctant support team that doesn’t actually help you?

Instead, look for legal software that prides itself on its friendly, helpful support team.

Ready for your next legal software?

Tabs3 is legal software dedicated to supporting law firms and making their lives easier. With a top-notch support team, regular updates, and features like a legal CRM and website builder, Tabs3 provides law firms with a competitive edge in a saturated field.

Ready to see the possibilities for yourself? Schedule a demo today.

In today’s competitive legal landscape, law firms must leverage every available tool to effectively manage and grow their practice. One of the most effective tools to do this is a client relationship management (CRM) system, which helps you streamline various aspects of your firm’s communication tasks, from lead generation to client intake and beyond.

Even better than industry-agnostic CRM software, though, is legal-specific CRM software that allows you to leverage marketing automation tools. While some operations require hands-on workflows, many can be automated, freeing up time for more critical tasks and enabling your practice to grow.

Here, we’ll cover what client intake and CRM software is, how it benefits law firms, and how to choose the best legal CRM software for your firm. Let’s get started!

What is client intake and CRM software?

Client intake and CRM (Customer Relationship Management) software is a specialized type of software designed to streamline and enhance the processes involved in acquiring and managing clients. At its core, client intake software helps law firms efficiently handle new client information, from initial contact through the collection of relevant data necessary for opening a case. CRM software goes a step further by enabling firms to maintain and manage ongoing relationships with those clients, ensuring that the firm can effectively communicate, manage appointments, and follow up on leads or existing clients.

This software typically features tools for automating tasks such as filling out intake forms, scheduling consultations, and tracking communication history. Additionally, legal CRM software often includes functions like lead management, email marketing, client segmentation, and analytics, providing a comprehensive view of a law firm’s interactions with potential and current clients.

Benefits of client intake and CRM software for law firms

Implementing client intake and CRM software offers numerous advantages for law firms, including:

• Improved Efficiency: Automating repetitive tasks like data entry, document generation, and scheduling frees up time for attorneys and staff to focus on billable work and client service.
• Enhanced Client Experience: Streamlining the intake process for clients makes it easier for them to provide information, schedule appointments, and engage with your firm.
• Better Data Management: Centralizing client data in one accessible location reduces the risk of errors and ensures that information is up-to-date and easily retrievable.
• Increased Conversion Rates: Legal CRM software helps law firms to effectively track and nurture leads through the sales funnel, improving the conversion of inquiries into clients.
• Insightful Analytics: CRMs offer valuable insights into client behavior, marketing effectiveness, and operational efficiency, allowing firms to make data-driven decisions.
• Personalized Communication: By enabling tailored communication strategies based on client data and interactions, law firms can foster stronger relationships and improve client retention.
• Scalability: As your law firm grows, client intake and CRM software can scale to accommodate more clients and complex workflows, ensuring that your firm’s operational efficiency stays consistent through growth periods.

How to choose the best Legal CRM and client intake software

Choosing the right client intake and CRM software is pivotal. The ideal solution is user-friendly, offers robust support, and is highly customizable to fit the unique demands of your law firm, regardless of its size.

User-friendly

Your legal CRM software should be easy to use for everyone involved, from intake staff to managing partners.

When your software is easily adoptable by your staff, you’ll reduce the time spent on training and implementation (not to mention minimize any frustration that may occur as a result of a system that’s difficult to navigate).

Responsive support team

Even the most user-friendly CRM software can run into technical issues. If you need support, you’ll want to choose a software system that comes with a team of knowledgeable customer service representatives who are ready to assist you as needed.

Customization and scalability

Every law firm is different, which is why you should look for CRM software that can be easily customized and scaled according to your firm’s unique needs.

For example:

• A solo practice may need a solution that simplifies client intake and streamlines their tech stack so they don’t have to juggle multiple products.
• A mid-sized firm may want to focus on improving the client experience with text messaging, allowing clients to more easily schedule appointments and connect with their legal team.
• Large firms may require more advanced features, such as legal CRM software that can allow for complex drip campaigns to increase their client retention while reducing leaks in their client sales funnel.

With Tabs3 CRM, your law firm can streamline its processes and nurture client relationships, all without taking focus away from delivering exceptional legal services.

Why choose Tabs3 CRM?

While there are numerous CRMs on the market, law firms may find that industry-agnostic solutions require a great deal of calibration to meet the needs of legal professionals. On the other hand, legal-specific CRM systems, like Tabs3 CRM, cater to the unique needs of modern law firms.

The Tabs3 CRM funnel enables you to effectively manage leads, prospects, and clients in a single, user-friendly platform while also supporting the complex operational needs of a law firm, like client intake, appointment scheduling, file-sharing, and more.

This comprehensive approach ensures that:

• Clients feel supported and engaged from first contact
• Information easily syncs with your practice management system
• Attorneys preserve the maximum number of billable hours

Here’s an overview of the key features that make Tabs3 CRM a growth game-changer for your legal practice:

Smart client intake

You don’t have to settle for a client intake process that is time-consuming, ineffective, or error-prone. The right legal CRM should include intuitive client intake solutions that make it easier to:

• Customize intake forms for different practice areas
• Sort out qualified from unqualified leads
• Sync client data with your practice management software
• Automate document assembly to move legal matters along more efficiently

One of the biggest benefits of smart intake forms is that they save your law firm billable hours. Instead of fiddling with forms and performing tedious data entry, you can focus on client work, building relationships, and other growth-generating activities.

Marketing automation

Marketing is necessary for growth, but it can be costly and time-consuming. So how do you get the greatest return on investment (ROI) for your marketing without sacrificing billable hours? With marketing automation. There are numerous marketing automation tools available for law firms, but several key ones are built right into Tabs3 CRM.

Text message automation

Tabs3 CRM facilitates lead nurturing with text automation and custom forms. By automating text messages and creating tailored forms, you can gather valuable information about your leads and cater to their specific needs and preferences.

Use text message automations to connect with clients for:

• Follow-ups
• Consultation information
• Appointment confirmations
• eSignature requests

Email drip automation

Save time and maintain consistent communication with your leads by automating email sequences.

Our CRM software helps you create personalized email templates, schedule follow-ups, and track engagement to keep potential clients (and even leads who have gone cold) engaged throughout the conversion process. And the more engaged your prospects are, the more likely they are to turn into satisfied clients.

Seamless integrations

Once a lead becomes a client, Tabs3 CRM simplifies the transition by seamlessly integrating with PracticeMaster. This integration ensures that all client information is accurately and efficiently transferred between systems, allowing you to focus on providing top-notch legal services.

By implementing Tabs3 CRM in your law firm, you can effectively track leads, grow prospects, and gain clients with a tool designed specifically for the needs of modern law practices.

Grow your practice with Tabs3 CRM

As a legal professional, your time is incredibly valuable. By harnessing the power of Tabs3 CRM, you can automate and streamline your client management processes, allowing you to focus on what truly matters: providing exceptional legal services and gaining more billable hours.

Are you ready to see how Tabs3 CRM can revolutionize your practice? Sign up for a demo today and see the difference automation can make in managing and growing your law practice.

Going paperless is a business strategy that offers a lot of benefits to law firms. Think:   

• More manageable billing workflows 
• Quicker payments 
• Reduced costs 
• Improved security 
• Greater client satisfaction 
• Reduced environmental impact

But if your law firm has been trapped in a cycle of printer paper, ink cartridges, and envelope-related paper cuts, where do you start?   

One of the best ways to reduce paper in the office is to start small. You don’t have to eliminate all paper use to quickly experience significant improvements.   

For many law firms, the most impactful switch comes with going to paperless invoicing. This switch comes with a few setup requirements, but once implemented, it provides a better overall invoicing experience for both your law firm and your clients. Here are five strategies to help you move to paperless invoicing with ease. 

1. Share the benefits of paperless invoicing with your staff and your clients. 

To make any change more effective, you have to convince others why they should also embrace change.   

For your clients, you can emphasize both the sustainability and convenience that comes with paperless invoices. Consider sharing the following facts:   

• The average attorney goes through 100,000 sheets of paper each year. That means the average lawyer consumes the paper of 10 trees in just one year.
   
• Even though most paper is recyclable, it still makes up an estimated 26% of waste in landfills. But it’s also a no-win situation; recycling paper actually uses more harmful fossil fuels than just throwing it in the landfill.
   
• For clients, the switch to electronic invoicing and online payments can save 6.6 pounds of paper and 171 pounds of greenhouse gas emissions per household, per year.
   
• When clients use online payments, they can keep their credit card on file and in some cases, automate payments entirely.

For your staff, you can add on some serious cost-saving benefits:  

• If you go through the average amount of paper for a law firm in a year, reducing paper consumption could save you $1,000 per employee, per year.
   
• Electronic invoicing alone can save companies $4–8 per invoice. With that in mind, a law firm with ten clients would save at least $480 per year by making the switch to paperless invoicing.
   
• Paperless invoices save on additional office costs including ink, toner, pens, pencils, and other associated office equipment such as binders, staplers, and three-hole punches. It all adds up.   

For employees, another significant benefit is the ability to work from home. With the right software, attorneys and staff can work on a more flexible office model, which is still a high priority for many employees.   

Software like Tabs3 is an important component of this; Tabs3 Cloud allows legal professionals to handle billing and payment tasks from wherever they work, thanks to secure and reliable cloud-based software.   

These points all help underscore the importance of switching to a paperless system, and why they should embrace the change as well.  

2. Budget properly to avoid any surprises 

When you make the change to paperless invoicing, there will be a few start-up costs. You may need to digitize existing documents and set up your client portal, which can take time and require purchasing the appropriate equipment or hiring someone to handle the work for you.   

Once this is done, you won’t have to pay for paper or stamps anymore, but the billing software you use may have a surcharge or processing fee. Depending on your budget and pricing model, you may consider passing on the surcharging fee to clients to help manage your costs.   

These fees might be relatively low (and much lower than the cost of paper), but you never want to be surprised by unexpected costs.  

3. Communicate with clients well in advance 

Effective change communication requires exposure and repetition. Some clients may embrace a less paper-heavy process, but others may be resistant to or confused by the changes.   

To make the change to paperless invoicing as smooth as possible, take the following steps to ensure your clients are prepared:  

• Send notices well in advance of the change explaining how processes will change, the timelines, and what to expect. 
• Encourage clients to reach out if they have any questions or concerns. Create an FAQ section on your website or draft a blog about the benefits of these new processes.  
• Include details about the electronic invoice process in any new client onboarding documentation.

Consider creating a marketing campaign around your new paperless invoicing philosophy. Leading up to the switch, create a few social media posts that help educate clients about what to expect. Email campaigns can be especially valuable in this context; craft a drip campaign with your legal client relationship management (CRM) software with reminders about timelines, processes, and how to get questions answered.   

Keep in mind that some clients may just be set in their ways and might insist on continuing with traditional invoice methods. It may benefit your firm to honor the billing preferences of legacy clients so you can preserve those relationships.  

4. Train your team on the new billing process 

It can be hard to navigate new processes and procedures even in the most intuitive systems. New features may have the potential to provide ease and flexibility, but if no one knows that the features exist or how to take advantage of them, you may not see the return on investment you’d like.  

For example, with Tabs3, law firms have the option to customize their online payments with many different features, including the ability to: 

• Process multiple invoices via batch billing
• Schedule automatic electronic prebills 
• Create payment schedules from a single payment to a payment series 
• Request trust deposits directly from the billing system 
• Create custom rates for any timekeeper for any client 
• Utilize alternative fee structures like contingency, split fee, flat fee, and retainers 
• Link automated timekeeping to attach billable hours to a client’s invoice

But how do you turn those customizations from conceptual benefits to real-time advantages for your firm?   

The answer is simple: Training!  

Schedule training sessions for both new employees and veteran staff to ensure they can fully navigate the system and build the most efficient workflow. Consider offering additional training whenever a new system feature rolls out.  

Another option for Tabs3 users is to work with an experienced Tabs3 consultant. These software professionals know Tabs3 tools inside and out and can help you create a tailored onboarding and training program for your team.  

5. Solicit feedback from clients and employees 

No news is not always good news. It may not occur to someone to provide feedback, but that doesn’t mean that they don’t have feelings about the change to paperless invoicing.  

Actively solicit feedback to provide both your clients and your team an opportunity to adjust the process. By creating an open communication channel, you can improve your client relationships by demonstrating your commitment to their experience. You also give your employees the opportunity to change or update workflows if they identify potential pain points for your team.  

Make the change to paperless invoicing with Tabs3 Billing 

Tabs3 Billing has everything you need for an efficient and effective paperless billing process.  

To learn more about Tabs3 Billing and paperless invoicing features, sign up for a Tabs3 demo.  

The legal profession, known for its adherence to tradition and precision, is experiencing a significant shift in how financial transactions are handled. Gone are the days when clients were content to pay by cash or check, waiting for banks to process these payments at a leisurely pace. Today, the demand for immediacy and convenience in all aspects of service, including payment, is undeniable. This transformation is driving law firms to adopt modern payment solutions, with law firm credit card processing emerging as a critical component in maintaining competitive edge and operational efficiency.

Modern clients are accustomed to the ease and security of digital transactions seen in other service sectors, and they now expect the same from legal service providers. This shift represents more than just a change in payment methods—it’s a fundamental evolution in the client-service provider relationship. The ability to pay instantly for services via credit card not only meets the growing client expectations but also streamlines the transaction process, reducing administrative burdens and enhancing the overall client experience.

The transition to digital payment solutions like credit card processing is facilitated by advancements in technology that ensure secure and efficient transactions. As law firms navigate this new landscape, selecting the right tools and partners for implementing these systems is essential. Law firm credit card processing platforms, such as Tabs3Pay, are specifically designed to meet the unique needs of the legal industry, ensuring compliance, security, and client satisfaction. This move towards integrated payment solutions is not just about keeping up with technology—it’s about taking proactive steps to future-proof law practices in a digital world.

Why credit card processing is essential for law firms

Law firm credit card processing offers many benefits that can directly impact your bottom line and client satisfaction. In an era where convenience and speed are paramount, providing a seamless payment experience is crucial. Here are a few key benefits of implementing credit card processing at your law firm.

Enhanced cash flow and reduced administrative tasks

For many law firms, managing cash flow efficiently remains a challenge. Traditional payment methods often lead to delays and increased administrative burdens. Implementing law firm credit card processing with solutions like Tabs3Pay can significantly enhance cash flow—studies show 30 to 40% improvements —and reduce the time spent on financial administration. Funds from credit card transactions typically settle quickly, meaning your firm can access earnings sooner than it would with check deposits.

Client satisfaction and growing expectations

The legal industry is no exception to the growing customer expectation for convenience in making payments, including for business transactions. Providing the ability to make payments by credit card helps meet that demand while also creating a simple payment experience that can be completed from any device.

Overall, accepting credit cards offers greater predictability and stability, opening up opportunities to proactively plan for your firm’s future based on more accurate financial projections.

Increased efficiency and reduced administrative burden

Processing payments via checks or cash can be cumbersome. It involves manual handling, trips to the bank, entry into accounting systems, and reconciliation processes—all of which consume valuable time that could otherwise be spent on billable legal work. Credit card processing automates much of this process. By integrating with legal billing and accounting software, like Tabs3Pay does, transactions are recorded and reconciled in real time. This automation significantly reduces the administrative burden and minimizes the risk of errors, allowing staff to focus on more critical tasks that directly contribute to their firm’s success.

Predictability and financial planning

Accepting credit cards provides a more predictable stream of income, a crucial factor for any law firm’s financial planning. With traditional payment methods, predicting when payments will be received can be challenging, complicating budgeting and financial planning. Credit card processing offers a more consistent and reliable timeline for receiving payments, facilitating better cash flow management and financial stability. This predictability enables law firms to plan with greater confidence, allocate resources more efficiently, and make strategic decisions based on reliable financial data.

How to choose the right credit card processing solution

Not all credit card processors are suitable for the unique needs of law firms. It’s crucial to select a service that understands and aligns with the legal industry’s standards. Here are a few key things to look for when selecting a credit card processing service.

Choose a service that is designed for law firms

General business credit card processors often do not cater to the unique needs of the legal industry, particularly around the management of Interest on Lawyers Trust Accounts (IOLTA) and compliance with the American Bar Association’s rules. Law firm credit card processing solutions must ensure that client funds are properly handled to avoid any impropriety or even the appearance of impropriety. For instance, transaction fees should not be deducted from trust accounts but from the firm’s operating account.

Data security and PCI compliance

Data security is paramount in any industry, but the legal sector faces particularly high expectations due to the sensitivity of the information they handle. Law firms must ensure that the credit card processing solution they choose is Payment Card Industry Data Security Standard (PCI DSS) compliant. This standard helps protect sensitive cardholder data from theft and misuse. Moreover, law firms should inquire about additional security measures, such as end-to-end encryption and tokenization, which can further protect client data from breaches.

Trust account management

Properly handling client funds is paramount in legal practice. Most general business credit card processors deposit funds and deduct fees from the same account, which can complicate trust account management. However, legal-specific solutions like Tabs3Pay are designed to deposit funds directly into the trust account while withdrawing fees from the operating account. This setup prevents the mismanagement of client funds, which is crucial for compliance and trust in legal practice.

Tabs3Pay: A credit card processing solution tailored for law firms

Tabs3Pay stands out in the crowded field of payment processing solutions by being specifically designed to meet the unique needs of law firms. This specialized focus translates into a host of benefits that directly address the operational, compliance, and financial challenges faced by legal professionals today. Here’s how Tabs3Pay offers a superior solution for law firm credit card processing.

Seamless integration with practice management software

One of Tabs3Pay’s most significant advantages is its seamless integration with Tabs3’s legal practice management software. This integration is critical for law firms as it allows for the synchronization of financial data across billing, accounting, and case management modules without any manual intervention. When a client makes a payment via Tabs3Pay, the transaction details are automatically updated in real time across all relevant systems. This saves time and reduces the potential for human error in data entry, ensuring accuracy in financial reporting and client billing.

Designed with legal compliance in mind

Tabs3Pay is built with a deep understanding of the legal industry’s regulatory environment. It ensures that all transactions comply with the American Bar Association’s rules and local jurisdictional requirements for handling client funds. Specifically, Tabs3Pay addresses the critical aspect of trust accounting. Unlike general business processors, Tabs3Pay automatically directs fees to be taken from the operating account while depositing client funds directly into trust accounts. This feature is vital for maintaining ethical compliance and safeguarding client monies, a cornerstone requirement in legal practice.

Enhanced client experience

Tabs3Pay enhances the client experience by offering a convenient and secure way to pay legal fees. Clients can pay from anywhere, at any time, using their preferred payment method, whether it’s credit card, debit card, or even ACH transfers. This flexibility improves client satisfaction as it aligns with the modern consumer’s expectations for quick and easy transactions. Additionally, the system supports mobile payments, which are increasingly becoming the norm in all transactions.

Learn more about Tabs3Pay

Tabs3Pay is part of Tabs3 Software, which means that if you want to sidestep double data entry by having your accounting seamlessly update with new payments, you can. With flat rate options and more, you can find an approach that works for your firm.

Learn more about the benefits of Tabs3Pay.To see firsthand how Tabs3Pay can benefit your law firm, request a free trial or schedule a walkthrough demo today.

Whether your potential clients are starting from scratch with a Google search for “business attorneys near me” or doing a little due diligence after receiving a referral, your law firm website is one of the first stops they make on the way to hiring you.

But if you think it ends there, think again!

Your website does more than simply showcase your practice areas and provide leads and clients with your contact information.

When combined with your legal client relationship management (CRM) software, your website can reduce manual tasks, build client relationships, and help your practice become a law-firm-growing machine by:

• Creating the right first impression
• Keeping leads and clients engaged
• Making intake smoother
• Facilitating smoother workflows AND client service
• Helping you get paid faster

Let’s take a closer look at the dynamic duo of your law firm’s website and legal CRM.

Creating a strong first impression

First impressions matter, but as a legal practice, how do you make the right one in today’s digital world? You have several options for how to nurture a positive first impression.

Unsurprisingly, your website is one of them! With an attractive, on-brand website, you can showcase your experience, highlight your attorneys’ qualifications, and build trust from the outset.

However, keep in mind that law firms have specific ethics requirements concerning marketing, so it’s essential to work with a legal website provider who knows the ins and outs of this industry and can help you stay compliant.

Your CRM also aids in creating a strong first impression. As detailed below, it allows for a high degree of personalized communication and messaging, setting the right tone for future client interactions.

Keeping leads engaged

Your website visitors typically aren’t coming to your website because they’re just researching a particular practice area. They’re most likely visiting because they’re in the market for legal services.

But if your website doesn’t go beyond your attorney bios and a few practice areas, they might as well be stuck in research mode.

You can prevent this from happening with a site intentionally designed to engage them. This includes:

• Relevant, informative blog posts
• Detailed practice area pages with real-world examples and case studies
• A resource center with downloadable guides, checklists, and other helpful content

However, to truly keep leads engaged, you need to help them take the next step towards becoming a client. Incorporate well-placed contact forms, lead magnets, and calls to action on your site.

Once leads have reached out, their information is added to your CRM as a contact, and you can put your CRM to work with marketing automation strategies like:

• Automated email drip campaigns to keep leads warm and nurture them towards a consultation
• Personalized follow-ups with relevant information based on their specific needs and interests
• Targeted messaging and content to address common pain points and objections

Making intake smoother

If you want new clients to feel like their relationship with you is off to a promising start, one of the best things you can do is offer a friction-free intake process. When intake goes smoothly, clients feel like they’re getting a preview of your firm’s capabilities.

Unfortunately, the traditional manual intake processes can be prone to bottlenecks and miscommunication, not to mention data entry errors.

The solution here is surprisingly simple, though. With a legal CRM offering smart, logic-based intake forms that can be embedded on your website, you can create a straightforward process:

• Client fills out an intake form
• The intake form gathers relevant information
• Information is synced with your practice management system
• Client receives automated follow-up about next steps
• Your team is notified, and next steps are triggered

This process helps your clients feel attended to from the beginning, a great sign for client service expectations.

But just as importantly, the process eliminates numerous manual tasks from the intake process. Instead of walking new clients through forms or tracking down who needs to follow up with whom (and when), your team can focus on billable tasks or business development work.

Creating smooth client service and smoother workflows

When you build a website that is easy to navigate, mobile-friendly, and full of useful content, both leads and clients will look at it as a resource. They’ll be able to use your website as a way to educate themselves on their legal matters, but they’ll also turn to it to facilitate client service.

For example, from your website, your clients can:

• Schedule appointments with your team
• Connect to their document portal for secure access to important files
• Make payments or view invoices

This benefits your law firm as well. With a website and CRM working together to facilitate client service, you can automate time-consuming administrative tasks and create a more efficient process overall. This means you can take on more clients without sacrificing the quality of your services, leading to potential revenue growth for your firm.

Getting your firm paid faster

In addition to improving communication and workflows, your website and CRM can work in tandem to help you get paid faster.

There are several ways you can achieve this. The simplest way (which is often the best way!) is to add online payment links to your website. Putting a “Make a Payment” link on your homepage reduces head-scratching when your client is ready to pay but can’t find their invoice.

If your law firm uses legal practice management software with a client portal feature, you can also add a client portal link to your website to increase accessibility.

Where does your legal CRM come into the picture? Your legal CRM can be used to send automated invoice reminders. These reminders can help increase the rate of payment, as well as reduce the chances that clients will pay late or be sent to collections.

Leveraging data for better decision making

Your website is a huge source of data for your firm. So is your legal CRM. When combined, they offer insight into:

• Potential clients: How they find your site, which pages they visit, and what content they engage with can give you data on how to best focus your marketing budget.
• Current clients: Email opens and clicks, website visits, and document downloads can help you identify areas for improvement in client service or communication.
• Overall performance: With the data from your website and CRM, you can evaluate metrics like conversion rates, average response times, and client satisfaction and use that information to inform decision making to improve your productivity and profitability.

Empower your firm’s growth with Tabs3 Websites and CRM

The combination of Tabs3 Websites and CRM gives your law firm the tools it needs to attract, engage, and retain clients more effectively than ever. By harnessing the support of these platforms, your team can deliver exceptional service while nurturing your firm’s growth and success.

Explore how Tabs3 can transform your practice by scheduling a demo or signing up for a free trial today.

Remote working is not the same buzzword it was back in 2020 or 2021. Today, remote working has become an accepted and embraced part of the professional landscape.

16% of companies are fully remote and 51% have adopted hybrid work for their employees. There are now three times more remote jobs than there were in 2020. 98% of remote employees want to continue working remotely indefinitely.

But how is remote work playing out for law firms? The legal industry has long been slower to adopt trends and tends to take more conservative perspectives on workplace culture. Still, where does that leave us today? How has the landscape changed and what can your law firm do to make the right choices for how your practice operates?

Here’s what lawyers need to know about how they can most effectively work remotely and from home.

Can lawyers work from home?

Although it used to be less common, more law firms are embracing remote work models and giving attorneys the freedom to work from home. The transition to remote work within the legal profession has unfolded against a backdrop of necessity and evolving workplace expectations, clearly demonstrating that lawyers can effectively work from home. This capability has transformed not only where legal work can be done but also how law firms envision the structure and delivery of their services. Remote work, once a novel concept, has become a mainstay in the legal sector, signifying a permanent shift towards more flexible and digitalized working arrangements.

In fact, lawyers, like the majority of the working population, have embraced remote work. In an ABA report, the vast majority of attorneys (87%) stated their workplaces permitted remote work. A third of respondents stated that they primarily worked from home, but, intriguingly, another third of respondents stated they worked primarily in their office.

Attorneys who work remotely or on a hybrid basis reported that neither the quality of their work nor productivity nor billable hours have been negatively affected by their working arrangements. Women in particular stated they benefited from remote and hybrid work, as it helped them balance work and family responsibilities. So, the question is no longer whether lawyers can work from home, but how can they do so most efficiently.

Leveraging technology for remote legal work

Legal tech has helped bridge the gap between office work and work out of the office. In 2021, legal tech generated $27.6 billion in revenue worldwide and the market is forecasted to expand by over 4% annually through 2027.

While the drivers of the legal tech industry are complex and can’t be solely attributed to remote work, it has doubtlessly benefited from the development and expansion of tools used to power remote legal work. Tools that law firms rely on to work remotely include:

• Video conferencing software
• Communication tools such as messaging apps
• File-sharing and eSignature tools
• Cloud-based storage

Even tools that aren’t tied directly to remote work have thrived in the remote work environment.

Document automation, project and case management software, and online payment options have become more powerful, allowing lawyers to streamline their workflows and maximize productivity. What’s more, an increasing number of these tools are being built into legal practice management software, creating a more seamless experience for lawyers as they conduct their work.

Collaboration can happen easily (without compliance risks)

Tools like those detailed above have made working on legal matters between coworkers easy. Colleagues can use project management software to ensure everyone is on the same page with progress on legal matters. File-sharing makes it simple to exchange documents. Video conferencing allows attorneys, legal staff, and clients to meet regardless of location.

But can they do so and stay in line with legal compliance requirements?

Compliance questions need to be considered in all aspects of legal practice, but they have borne particular concern as law firms shift into remote work. That’s because the protocol for maintaining security for client information requires calibration.

Thankfully, with the right tools and policies, attorneys can strictly adhere to legal compliance standards.

Take, for example, implementing eSignature software to finalize critical legal documents. eSignature is not only recognized as legally valid but when practice management software, such as Tabs3, integrates with a legal-specific eSignature like LexSign, client data is protected by bank-level end-to-end encryption.

Client preference plays a big role in how remote work plays out

The client experience factors into how law firms consider remote work options for their practice. But which way is the wind blowing?

The answer is nuanced. While there is variation based on practice area, client demographics, and stage of a legal matter, many clients indicate that they prefer in-person meetings with attorneys during the initial stages of legal matters. However, they often prefer to receive updates through other forms of communication (phone, email, client portal, etc.) rather than coming into the office for a meeting.

Importantly, a 2021 survey by Thomson Reuters indicates that clients have not perceived a negative impact in their experience with their attorneys working remotely.

Tips for lawyers working remotely

Regardless of how your law firm proceeds with its own approach to remote work, there are steps you can take to make it more successful for your attorneys. Follow the tips below to make working from home (or wherever your attorneys choose to open up their laptops) as successful as possible.

Establish a clear remote work policy—or ask for one

Inconsistent policies about how often your attorneys can work remotely and how they are expected to conduct their work cause stress, confusion, and decreased productivity. Clear, consistently implemented policies, on the other hand, give your team confidence and empower them to do their best work.

A robust remote work policy should cover the following concerns:

• Which team members can work remotely and how often
• Working hours
• Expectations for timekeeping
• Communication guidelines
• Technology usage
• Security and compliance protocols

Keep your tech stack up to date

The early days of remote working are gone. It’s not reasonable to expect attorneys to cobble together software and tools so they can do their jobs remotely.

Instead, attorneys expect that their employers have considered all the resources and guidance they need to successfully do their job out-of-the-office. That means your legal tech stack needs to be configured for attorneys and staff who are not in the office.

One of the most significant pieces of this consideration is legal practice management software. While the early days of the pandemic saw a boom in cloud-based software, desktop software has caught up by establishing efficient, effective processes to allow remote workers to access their software from anywhere.

With secure access to fully integrated law firm practice management software, attorneys can complete their most common tasks from home, including:

• Billing and invoicing
• Time tracking
• Planning and setting appointments
• Sending and receiving secure emails, legal documents, eSignatures, and more
• Managing progress of legal matters
• Compliant legal accounting
• And more

While it is possible to build out a solid tech stack for your law firm by combining different tools, your team may benefit from a comprehensive practice management system that combines all the tools they need.

Tabs3 has been an industry leader in on-premise practice management software for decades. But for Tabs3 users, desktop software doesn’t mean being confined to your desk. With Tabs3 Cloud, you can access all the features of Tabs3 Billing and Financials from wherever you work. For mobile users, Tabs3 Connect brings the full functionalities of Tabs3 Billing and PracticeMaster to your phone. You also get access to features like HotBackUp, Auto-Recovery, and more.

Security needs to be a priority

Security threats have been on the rise since before the pandemic, but the remote work boom kicked them into high gear. As a legal professional, you need to ensure the highest degree of security possible for your team and your clients. Steps you should take include:

• Provide privacy and security training for all attorneys and legal staff
• Limit access to sensitive data in your practice management system
• Assess your cybersecurity protocols
• Work with your IT professionals to ensure they have the appropriate certifications to protect your server

Remote work + Tabs3 is a winning combination for law firms

Remote work with Tabs3 Software is secure, compliant, convenient, and accessible. With more than 40 years of experience offering cutting-edge legal technology to law firms, we’re dedicated to following even the industry’s strictest compliance and data security regulations while offering attorneys a flexible working experience.

Check out the Tabs3 Cloud and Tabs3 Connect product pages to learn more about what each has to offer.

Request your free trial or schedule a demo to see how Tabs3 Software’s fully integrated suite of software products can revolutionize the way your law firm functions on a day-to-day basis, whether remotely or in the office.

In the legal profession, properly managing trust funds is not just a matter of financial management; it’s a matter of compliance and ethical responsibility. Yet many lawyers and firms still use outdated or inefficient accounting systems to manage trust accounts. If your firm falls into this category, we’re here to help. Modern trust accounting software for lawyers is designed to address the unique challenges and legal obligations associated with trust fund management, ensuring fewer billing errors and less time spent on accounting tasks.

Transitioning to a trust accounting software designed for lawyers is vital for efficient legal accounting. Traditional methods or general accounting software may not meet the specific needs of legal trust accounting, leading to potential compliance issues and inefficiencies. Legal trust accounting software enables lawyers to handle complex transactions with accuracy and speed, often eliminating the need for additional bookkeeping resources.

If you’re considering making the switch or are new to trust accounting software, this guide offers in-depth insights and valuable information to help you make an informed decision.

What Is Trust Accounting?

At its most basic, trust accounting is the bookkeeping of trust fund accounts. To protect legal clients’ best interests, the American Bar Association (ABA) and state bar associations maintain detailed guidelines and regulations about trust accounting. In addition, attorneys must follow state-mandated tax rules for managing trust accounts.

Among these rules is the ABA’s expectation that client funds and law firm operating funds should always be kept separate. It’s also important to remember that law firm earnings and trust accounts are subject to different tax rules.

This is one reason why it’s so vital to monitor the fiscal movements of a trust account closely and track transactions across various categories. Proactive organization also helps attorneys apply the proper tax application to every expense and receipt.

To provide accurate reports about the status of trust accounts to clients and the ABA, attorneys should also keep detailed records and notes about all transactions.

Read more: 6 Ways to Improve Your Firm’s Trust Accounting

The Basics: Trust Accounting Best Practices

Even with the best trust accounting software on our side, attorneys should remain in the habit of regularly reviewing their state’s trust accounting regulations to stay in compliance.

Maintain Accurate Records

When it comes to trust fund management, complete records and a reliable accounting process are crucial. The right trust accounting software will include built-in safeguards that prevent situations where necessary data isn’t readily accessible.

Keep trust accounting records separate from personal and business records, especially when you’re managing multiple trust funds at once. Listing trust funds on your law firm’s balance sheets is both confusing and unethical.

Enact Strong Security Measures

Trusts are often the target of fraud and other forms of theft because they usually hold large sums of money. It is your law firm’s responsibility to protect clients’ funds from hackers and identity thieves.

Adherence to Purpose

Every trust fund has a specific use in its rules. Trustees cannot withdraw money from it to cover other things. Typically, the purpose of legal clients’ trust funds is to cover the cost of legal services. Until those services are provided and the money is transferred to the law firm’s operating account, attorneys shouldn’t spend the money for any purpose.

Prioritize Transparency and Accessibility

Transparency is vital to successful trust accounting. Rigorous record keeping doesn’t mean that information should be buried away, hidden from view. Your trust accounting software should keep data readily accessible. Your firm should always be ready to provide each client access to their trust information.

Transactions

Trust accounting can be an area of potential malpractice issues if you aren’t careful with your process. Many attorneys choose to structure payment plans to make as few transactions as possible to minimize the risk of mistakes and getting into hot water with the bar.

Finding time to meticulously track trust accounts can be a challenge for busy attorneys. Fortunately, trust accounting software designed specifically for law firms offers a powerful solution. As part of our comprehensive range of legal software solutions, Tabs3 provides trust accounting software to help with the management and maintenance of client funds.

Read more: Six Trust Accounting Best Practices for Lawyers

Tabs3: Your Versatile Trust Accounting Software Solution

Tabs3 Trust Accounting software helps you organize and streamline your work, increasing productivity, billable hours, and profits.

With accounting and management features consolidated on one screen, you won’t have to worry about juggling multiple software at once. Instead, your team will enjoy a versatile platform that streamlines processes throughout your whole firm.

With legal software products designed for the way you work, Tabs3 Trust Accounting will be one less distraction from doing what you do best: serving your clients! Tabs3 Software supports thousands of legal professionals in their efforts to improve their trust accounting process and shield their work against common compliance pitfalls.

Tabs3 Software Integration

Our trust accounting software works seamlessly with other Tabs3 applications to reduce the time attorneys spend on administrative tasks. When used alongside our billing, accounts payable, and general ledger software for maximum benefit, Tabs3 offers you the most informative overview possible of your law firm’s financials.

Tabs3 Trust Accounting is simple to use because it features an easy-to-navigate user interface. Integrated with Tabs3 Billing, you can view trust balances at a glance from various reports and the Matter Manager. For example, your trust balances can be included in the work-in-process reporting and on statements. You can review trust balances and transactions as needed from either application. With Tabs3Pay, you can also process client deposits via credit card.

Automation makes Tabs3 Software even more useful for trust accounting. Any payments made to or from a client trust account will automatically be recorded, improving the accuracy of your firm’s trust accounting records with minimal effort required.

Why Software Is Important for Trust Management

With the complex tax factors and transactions that happen within a trust, keeping track of everything can get complicated. Even an experienced attorney can easily feel overwhelmed by the sheer amount of work involved.

While a legal professional may have the training and knowledge for the job, mistakes can happen easily when managing trust accounts for multiple clients. Even minor mistakes can have major ramifications when tax laws and industry regulations are violated, even unintentionally.

Dedicated software designed to assist with all trust-related tasks can increase your firm’s accuracy. Tabs3 Software can help you avoid inconsistencies that may impact your trust accounting. Compared to manually managing the trust accounting process, Tabs3 Trust Accounting software streamlines workflows and minimizes errors, saving your firm time and money.

Your firm can become fully liable for any issues with trust accounting, and accounting software reduces errors and protects you in the event that there’s a problem. Tabs3 records all transactions and keeps them organized, so you’ll always have easy access to them and ensure that nothing falls through the cracks. The software warns you when an account goes below a minimum balance, and helps you easily reconcile your bank statements. In some states, multiple forms of proof that trust bank accounts are in balance may be required. Tabs3 Trust Accounting software provides this proof via the Three-Way Reconciliation Report.

Easily Manage Multiple Client Trust Accounts

With Tabs3 Trust Accounting, you’ll be able to process and track every transaction across multiple trusts with ease. With seamless integration between all Tabs3 Software applications, you can check ledgers while managing trust without the need to switch tabs. In addition, Tabs3 Trust Accounting complies with all major trust accounting regulations. Because our trust accounting is built specifically for law firms, you’ll have no trouble keeping complete and accessible records with Tabs3.

You can also customize your software to adhere to additional in-house security protocols. Tabs3 offers an extra layer of security, which protects funds from anyone intent on stealing from your clients. The software tracks all transactions within the trusts connected to it to keep you informed.

Additional features

Customizable Dashboard

Being able to find your way around your trust accounting software is critical. With Tabs3 Trust Accounting, you can access a comprehensive overview of your firm’s trust accounts and their standing at a glance. Navigating the home page to complete a transaction or start a reconciliation is intuitive and fast. With just a few clicks, review additional account summaries and other detailed transaction information.

You’ll also be able to view recent transactions within any individual client trust, as well as a combined list of transaction information. Pin your most used actions in the dashboard to customize your process, so you can print, check, and record data all in one place.

Positive Pay

Tabs3 Trust Accounting includes a Positive Pay Export program, which offers greater security in a more streamlined workflow. Directly export approved checks and upload them to your financial institution to support the Positive Pay fraud prevention program.

Streamline Your Trust Accounting with Tabs3

Experience the difference that Tabs3 Trust Accounting software can make for your firm! All Tabs3 Financials software, including Trust Accounting, General Ledger, and Accounts Payable, are available to access with Tabs3 Cloud and on-premises subscription plans. View our pricing plans for more information and find the solution that best fits your needs.

Schedule your free demo today.