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Infographic Friday: Challenges of Law Firm Billing

Infographic Friday Challenges of Law Firm Billing-header Invoicing and billing present steep challenges for law firms.  According to a recent law firm billing survey we conducted:

  • 73% of law firms report experiencing past due accounts
  • 58% say they spend too much time on billing
  • Roughly half of small law firms say about 4 in 10 accounts are past due
  • 82% report client financial hardship as the root cause

We’ve pull together the infographic embedded nearby based on this survey data and it’s this week’s Friday Share.

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Download a copy of the white paper based on this survey:
Nine Signs Your Firm May Be Its Own Worst Collections Enemy
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How to Analyze a Past Due Problem

The infographic provides several ideas for addressing the problem, which includes for example, conducting a client analysis.  The survey found that while the overwhelming majority of small law firms use software for invoicing and billing they may be overlooking reporting features in these programs for doing just that. What sort of reports and analysis? Useful reports to consider:

  • Time-to-pay. Which clients or types of clients are fastest to pay invoices?
  • Outstanding accounts receivable (AR). Which clients, or types of clients, have bills outstanding and for how long?
  • Time tracking analysis. Comparing work invoiced vs. actual work performed (this is useful for understanding the profitability of a flat fee).
  • Client profitability. Which clients and what types of cases are most profitable?
  • Top clients. Who are the top clients by fees billed vs. fees collected?

If a law firm understands its client base in this level of detail, it can begin to focus its business development efforts to finding more clients like this – and ideally avoiding this challenge altogether.

Click here to enlarge this infographic

Infographic-Friday-Challenges-of-Law-Firm-Billing-main

If you enjoyed this post, you might also like:
Law Firms that Discount have more Past Due Clients 

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About Frank Strong

Frank Strong
Frank Strong is the communications director for the LexisNexis software division located on NC State’s Centennial Campus in Raleigh. In this capacity, he leads communications efforts in support of software products for law practice and law department management and also litigation tools – across large law, small law and corporate counsel segments. With more than 15 years of experience in the high-tech sector, Strong previously served as director of public relations for Vocus, which developed marketing, PR and media monitoring software. He has held multiple roles both in-house with corporations, ranging from startups to global organizations, and has also endured the rigors of billable hours, having completed gigs at PR firms including the top 10 global firm Hill & Knowlton. A veteran of two year-long deployments, Strong has concurrently served in uniform in reserve components of the military for more than 20 years, initially as an enlisted Marine and later as an infantry officer in the Army National Guard. Strong holds a BA in Film and TV production from Worcester State University, an M.A. in Public Communication from American University, and an M.B.A. from Marymount University. He is a PADI-certified Master Scuba Diver and holds a USPA "B" skydiving license.
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