It’s every lawyer’s worst nightmare, and yet a commonly recurring one: the non-paying client. After investing countless hours into working a matter, you present the client with a beautiful, polished bill, and silence. This only serves to put more work on your plate as you must now send additional follow-ups to the past-due client, including phone calls, mailed statements, and, if necessary, referrals to collections.
While larger firms have the resources necessary to chase down non-paying clients, solo and small firms are at the mercy of whether their clients decide to pay or not. Non-paying clients can have disastrous effects on your productivity, realization rates, and firm cash flow. One study shows that a bill that is more than 60 days past due can still be collected about 89% of the time. However, that drops to a 67% likelihood of collection after six months, and to a 45% likelihood after one year.
Do you have the resources necessary to repeatedly follow up with multiple clients over an entire year? Why not start automating firm accounts receivables, and ensure you’re devoting your time to serving paying clients?
Enter outsourced receivables
By outsourcing your receivables follow-up to a third-party vendor, such as the latest Clio integration partner InvoiceSherpa, you’re able to free up more of your valuable time making sure you’re focusing your efforts on getting paying customers rather than chasing payments. After integrating with InvoiceSherpa, Clio users are able to set up automatic triggers at specified timeframes that will follow up with customized messaging via either email, SMS, or phone based on the due date of your invoices.
By seamlessly connecting to your existing system, InvoiceSherpa removes all double entries and manual labor generally associated with a service of this kind. Your entire accounts receivable flow can easily be outsourced without having to change your current processes or make any technology changes to your current system. Clients are even able to pay their bills directly from the reminders sent from InvoiceSherpa, facilitating easier payment.
A late invoice doesn’t help anyone: cash flow is one of the main reasons a business goes broke. This is as true for law firms as it is for anyone. With our InvoiceSherpa integration, the goal is to automate the process from when the bill goes into Clio until it gets paid. By consistently following up with past-due clients, you can dramatically cut down both the time it takes to get paid and the number of invoices that go past due.
We published this blog post in July 2014. Last updated: .
Categorized in: Accounting
There's a better way to stay compliant with trust accounting rules
Learn how to use technology to organize your trust accounts in our guide: How to Manage Your Trust Accounting With ClioGet the Guide