Tools to improve billing & payment workflows
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Transcript of Tools to improve billing & payment workflows
#ClioWeb
Instructor
Joshua Lenon
• Lawyer in Residence at Clio• Attorney Admitted in New York• @JoshuaLenon
Colin McMahon
• Training Specialist at Clio
#ClioWeb
Agenda
• Collecting payment• Documenting work completed and expenses• Issuing customized bills• Depositing and transferring funds• Trust documentation
#ClioWeb
Clio Firms Get Paid First
• ~115,000 bills generated in the first 3 months of 2015
• 36.5% of those bills were marked as paid on the SAME DAY– Trust Accounts Advanced Fee Deposits– Flat Fees Upfront– Credit Card Payments
Unpaid
63%
Same
Day
Paid
37%
Q12015Bills
#ClioWeb
Accounting vs. Legal Accounting
Accounting for most businesses is backwards when it comes to legal:• Law firms must track both operating accounts and trust
accounts• Trust accounts are a liability under normal accounting rules,
but are tracked as assets in most accounting software
Lawyers need specialized accounting software.
#ClioWeb
How Trust Requests Differ from Invoices
Law firms issues 2 types of documents to clients about money
1. Invoices – work performed by the lawyer which is owed by the client
2. Trust requests – asking for funds to be deposited into a trust account
Law firms need accounting systems that can track both separately.
#ClioWeb
Credit Cards for Lawyers
Most jurisdictions let lawyers accept credit cards, with caveats:
• Credit cards may be used to deposit funds in trust & operating accounts• Fees and chargebacks should never be withdrawn from trust
accounts
Law firms need specialized credit card processors.
#ClioWeb
Trust Request Generation Demo
• Drafting a Trust Request• Issuing a Trust Request– Via email– Via Clio Connect
• Marking a Trust Request paid
#ClioWeb
Fees
Lawyers are entitled to a reasonable fee for their work.
Reasonable fees are judged by 8 factors including:• Time & labor required, novelty & difficult of the issues, & skill
required• Preclusion of other employment• Customary fees in that locale• Amount in dispute• Experience, reputation, and ability of the lawyer
#ClioWeb
2 Recommended Fee-Related Documents
1. Engagement / Retainer Contract stating terms of client billing– Get it in writing– Get it signed by the client– Mandatory inclusions– Required for contingency fees , nonrefundable, flat fees, & fee
sharing2. Invoices– Detailing work performed, personnel invoiced, and outputs
#ClioWeb
Client Preferred Pricing Strategies
• Transparent pricing - 37%• Guaranteed pricing - 27%• Value-based pricing - 26%• Lowest price - 10%
Source:AltmanWeil2014ChiefLegalOfficerSurvey
#ClioWeb
Better Billing Tips
1. Better billing starts before you send the bill.2. Client are seeking transparent bills; not lower bills.3. Timing matters with billing. Bill consistently & frequently.4. Use trust deposits or alternative fee arrangements to avoid
collections.
#ClioWeb
Time Tracking in Clio Demo
• Time entries from calendar, tasks, & documents• Time entries via timer, matters, or bulk via activities
#ClioWeb
Big Law Approach to Billing
• Regular time input• Digital bills and payment options• Frequent billing• Staff for accounting and collections• Discouraging write-offs
Source:“FirmsTurntoSpecialiststoBoostCollections,”NewYorkLawJournal,12/08/2014
#ClioWeb
Discounting
Discounts & write-offs rewards good and bad clients alike.
<10%
10-19%
20-20%
30-39%
LateBills&Discounts
Often NeverSource:“LawFirmBillingSurvey,”BusinessofLawBlog,08/28/2014.
#ClioWeb
Clio Bill Customization Demo
• Controlling bill contents at generation– Level of detail– Statement of Account– Discounting
• Sharing bills with clients– Via email & Clio Connect
• Clio Payments for invoices too• Bill Themes
#ClioWeb
Trust Account Records
• Have an IOLTA / Trust Account• Deposit Slips– Date– Source– Client or Matter
• Cash Receipts Book
• Disbursement Records– Cancelled Checks– Electronic Records
• Ledger– Client or Matter entries– Transfers, receipts, balances & more
• Bank Statements
FloridaRULE5-1.2TRUSTACCOUNTING RECORDSANDPROCEDURES
#ClioWeb
Clio Funds Transfer Demo
• Bank accounts in Clio• Depositing funds into an account• Linking to funds to client or matter• Transferring funds– Transactions in Contacts & Matters– Pay an invoice– Between matters belonging to the same client
#ClioWeb
Trust Accounting
• Monthly reconciliation–balance per bank–deposits in transit–outstanding checks
• Comparison of reconciled balances and ledgers
• Annual listings–Unexpended trust money
• Annual accounting certificate• 6 year retention requirements
FloridaRULE5-1.2TRUSTACCOUNTING RECORDSANDPROCEDURES
#ClioWeb
Clio Reports Demo
• Reports– Types
• Trust Ledger• Client Ledger
– Preserving reports• Exporting reports
– PDF– CSV
#ClioWeb
Thank You
Joshua Lenon
@JoshuaLenon
Linkedin.com/in/joshualenon
1-888-858-2546
Colin McMahon
Linkedin.com/in/colinmcmahonclio