Making a new change at a law firm can be a time-consuming process. However, the best way to increase profits is to consider where there may be bottlenecks in your current workflows. One of the most common challenges for lawyers is invoice processing times. With such a wide range, anywhere from two weeks to less than three days, it can be difficult to maintain a dependable cash flow.
Paper-heavy invoicing processes are one of the significant factors behind a delayed billing cycle. If your firm is looking for a new way to decrease administrative hours, consider the switch to paperless invoicing.
Why are law firms still using paper?
Many law firms still use paper to file invoices. The perceived benefits are understandable. When running a business, employees develop a routine within existing systems. Upper-level management may experience pushback when attempting to implement a change.
Another common belief is that clients prefer paper invoices when, in fact, 65% of Americans have paid a bill using their cell phones in the last year.
Additionally, law firms may believe that physical documents are more secure than electronic ones. After all, one out of every 40 cyberattacks targets a law firm. Lawyers are rightfully concerned about adopting technology and protecting client information.
However, this issue can be mitigated by choosing legal-specific practice management software with the highest data security standards.
4 reasons paperless invoicing benefits your firm
Your firm may be hesitant to switch, but the bottom line is that paperless invoicing can benefit your firm in many ways, from costing less money to automating tedious tasks.
1. Paperless invoicing is a cost-saving, revenue-boosting move
Think of how much your law firm currently spends on paper invoices, with line items including postage, printer paper, ink, and expensive, heavy-duty printers. Switching to an electronic system cuts overhead costs, saving on average $1,000 per employee annually and $4-8 per invoice.
Switching to paperless invoicing can also help increase your cash flow, ensuring your firm can always cover ongoing expenses such as salaries, rent, and technology costs.
2. Paperless invoicing reduces environmental impact
Clients increasingly value service providers who take environmental issues seriously. Paperless invoicing is one way to demonstrate you care about the planet.
Consider that paper makes up 26% of landfill waste. By switching to electronic invoicing, your firm can help protect the planet for future generations.
3. Paperless invoicing is more efficient
Paper invoicing can be tedious, making it more difficult to complete correctly. When a law firm makes the switch to paperless, they benefit with improved accuracy and fewer errors due to:
- Automated data entry and calculations: Legal billing software automates invoice creation, calculating billable hours based on time tracking data.
- Standardized templates: Standardized formats remove errors and ensure that all required fields are completed, maintaining compliance with client billing guidelines.
- Real-time error checking: Legal billing software flags common issues, including duplicate entries, excessive billable hours, and formatting inconsistencies.
4. Paperless invoicing meets client expectations better
Clients check their phones an average of 144 times per day. Improve client satisfaction at your law firm by allowing them to pay on their phone. Plus, your team will receive the funds faster.
When clients see an invoice in their email or via text, they can click the link and pay immediately, rather than sending in a check by mail, which takes at least one business day once they remember.
How to incorporate paperless invoicing in your law firm
While paperless invoicing offers clear benefits to law firms, they depend on choosing the right invoicing software. Tabs3 Billing offers features just for the legal industry to streamline processes and simplify invoicing.
Create customized electronic statements
Your law firm may have specific formatting for how you want your invoice to look. With Tabs3 Billing, you can match that with statement formatting.
These changes can be made firm-wide so that everyone is on the same page about how to create a statement. Options to customize the statement include (but aren’t limited to):
- Previous balance position
- Print non-billable hours (yes/no)
- Courtesy discount position
- Blank lines between statements
- Terminology
- Headings
- Cover sheet
Take advantage of email statements
With Tabs3 Billing, you can quickly email statements to your clients via Outlook or SMTP. Tabs3 provides customizable email templates for creating messages with the attached PDF invoice. You can use time-tracked, saved details and contact information to create and send invoices via email seamlessly.
To ensure your email account for legal clients doesn’t fill up, set up a different account for your billing. This way, all billing-related matters fall into that account. You can even set up email rules to sort statements into specific folders.
Implement client convenience tools like online payments, mobile access, and client portals
Tabs3Pay, a law firm credit card processing provider, seamlessly integrates with Tabs3 Billing. The setup takes less than an hour, allowing your law firm to start accepting payments almost immediately.
Some of the benefits of Tabs3Pay include:
- Advantageous pricing: Tabs3 supports surcharging, reducing the fees associated with credit cards.
- Trust requests: Send a link via email to accept online trust deposits in minutes.
- Payment schedules: Set up scheduled payments so clients always pay on time.
When you use Tabs3 and Tabs3Pay, clients benefit. They have mobile access through the Tabs3 Cloud to make payments through the client portal. Plus, they can access previous invoices and find answers to their questions, reducing your team’s administrative load.
Establish a comprehensive financial management system
Tabs3 Billing integrates seamlessly with Tabs3 Financials, a robust accounting solution for law firms.
The software handles trust accounting and accounts payable and works as a general ledger, all in one place. There is minimal setup and zero workarounds to meet the requirements for most bar associations. Plus, the support team for Tabs3 Financials is the same as for Tabs3 Billing and Tabs3Pay. They can help you leverage all three together to maximize profitability.
Addressing common transition concerns
It’s natural to be concerned when adding new software to workflows. However, Tabs3 has considered transition issues and taken measures to ensure everyone at your law firm can use the software with these features and services:
- An intuitive and user-friendly interface that makes it easy to customize and implement everyday workflows.
- Detailed training and support options, including the online knowledge base, email and phone support from 8 a.m. to 5 p.m. CT (Monday through Friday), training videos, and certified consultants to provide in-office training.
- High-level security, including user-based permissions, payment card industry (PCI) compliance, secure transactions, and enhanced data privacy.
Create more efficient processes with Tabs3
As software technology advances, now is the time to switch to paperless billing. Law firms have trusted Tabs3’s reliable, easy-to-use integrated suite of software products for over 40 years.
Let us show you how to implement our user-friendly legal software and schedule a demo with our team today.
