Pitfall # 9 – Billing Systems Unable to Handle Varied Fee Arrangements
Most law firms handle a variety cases and use an assortment client billing arrangements, such as hourly, retainer based hourly, fixed and contingency. Even if you predominantly practice one type of law and bill hourly, you are likely to have cases where you want a client to advance funds (retainer) or prefer a fixed fee or a contingency basis arrangement.
Your legal billing software must be able to handle all types of billing arrangements and the intricacies that arise. For example, when it comes to client retainers, states generally have strict accounting rules that require depositing unbilled/unearned client funds in trust accounts. Thus, it is important that your billing system can identify client funds vs. firm operating funds and process them correctly to meet trust accounting requirements.
You do not want to run into a situation where your legal billing system cannot process a fee arrangement properly. For a complete and uniform legal billing solution and to avoid Pitfall # 9, choose a system that can handle every type of billing arrangement your firm uses or may use in the future. Stay tuned for Pitfall # 8.
Register for Easy Soft’s interactive webinar, How to Avoid Legal Billing Pitfalls Learn how to evaluate systems that can streamline your back office operation for legal billing, trust account management and collections, and in turn, tighten state regulation compliance and improve your firm’s financial picture.