Six out of 10 small law firms say getting paid by their clients is a “significant problem.”
And firms that don’t offer their clients payment options like online billing and credit cards experience even bigger headaches.
Even so, an encouraging 88 percent of small firm lawyers say their practice is “successful” or “very successful.”
Those findings are from the “State of Small U.S. Law Firms Report” from Thomson Reuters Legal Executive Institute.
“Firms also are optimistic about the prospects for continued growth, with a majority of lawyers saying they expect increased demand for legal services, and growing revenues and profits over both the next year and the next three years,” according to the report.
There are two main reasons lawyers don’t get paid, the report says. The first is that the firm has poor or nonexistent systems for recording time and sending bills. The second is that lawyers spend too much of their workday on non-billable time.
“Nearly 80 percent of firms report they have not yet determined how to address the problem of spending too much time on administrative tasks,” the report says. “Only slightly more firms have implemented a plan to address their business development challenges.”
Read “The State of U.S. Small Law Firms” survey here.
Do you practice in Wisconsin, Texas, Minnesota, Ohio, Illinois, Indiana or Michigan? Is your professional liability coverage managed through Alta Pro? If so, you’re automatically a member of the Alta Pro Risk Purchasing Group (RPG), which offers a wealth of benefits for your practice: free, cutting-edge CLE webinars featuring top experts tackling timely topics; the Pro Practice Playbook; the Pro Practice Blog; Reminger’s ProLink risk management assistance; Reminger’s Claim Repair Hotline; discounts on CLIO practice management software; tax savings on health insurance; and access to the Risk Pro, who can help keep your firm safe and successful. Register here and start enjoying your Alta Pro RPG benefits.
10 Reasons Law Firms Lose Revenue
- Not capturing all time spent on a matter.
- Not billing clients regularly.
- Not billing clients according to the fee agreement.
- Not offering payment options.
- Not screening prospective clients thoroughly.
- Not sending bills immediately when services are rendered, thereby lowering the odds of getting paid.
- Not using billing software.
- Not training your staff on the firm’s time-billing system.
- Not using cloud-based billing solutions.
- Not recording all expenses and advanced costs.
Read How To Increase Law Firm Revenue With Legal Billing Software (natlawreview.com)
Alta Pro Insurance Services keeps you informed on cutting-edge issues that affect your practice. Every week the Pro Practice Blog posts timely and topical dispatches from the risk management front lines. We spot looming risks – like the possibilities and potential perils of cryptocurrency – and give you advance warning. We identify promising trends – like Micro Self-Care, Cybersecurity Ethics, and the One-Page Business Plan – and give you the inside scoop. We bring you live CLE webinars on topics you request, most recently “Managing a Law Practice in Uncertain Times.” Please let us know how we can help your professional practice minimize risk and maximize reward. We’re here for you.
