What's Happening?
Law firms are being encouraged to reevaluate their billing practices to improve client relationships and ensure timely payments. Legal business strategist Matt Darner, speaking on the 'Be That Lawyer' podcast, highlighted the discomfort many lawyers face
when following up on unpaid invoices. Darner suggests that this discomfort can be mitigated by reframing the approach to client communication. Instead of viewing invoice follow-ups as pestering, they should be seen as opportunities to reinforce the value delivered to clients. Darner emphasizes the importance of consistent communication and robust systems to maintain client trust and prevent the erosion of confidence over time. He argues that lawyers should focus on high-value legal work rather than chasing invoices, which is often a misallocation of their talent and time.
Why It's Important?
The approach to billing and client communication in law firms has significant implications for the legal industry. By improving these practices, firms can enhance client satisfaction and loyalty, leading to more stable revenue streams. The current system, where top-performing lawyers spend valuable time on collections, detracts from their ability to focus on complex legal work. This shift in focus could lead to increased efficiency and profitability for law firms. Additionally, by setting clear expectations from the outset, firms can prevent misunderstandings and ensure smoother interactions with clients. This change could also reduce the administrative burden on lawyers, allowing them to concentrate on delivering high-quality legal services.
What's Next?
Law firms may begin to implement training programs to help lawyers and their teams approach billing with greater confidence and effectiveness. This could involve developing new communication strategies and systems to ensure regular and clear client interactions. Firms might also consider restructuring their support systems to allow lawyers to focus more on legal work rather than administrative tasks. As these changes take place, the legal industry could see a shift towards more client-centric practices, potentially leading to broader industry reforms in how legal services are delivered and billed.
