In addition to the billable work performed by lawyers and legal staff on a daily basis, effectively capitalizing on that work is crucial for realizing the time and resources invested in clients by a firm.
However, many law firms encounter challenges when it comes to invoicing and collecting payments. Nearly one in three legal professionals acknowledge that their firm takes too long to issue bills to clients, and less than half report billing in a timely manner.
This year, we’ve identified several key performance indicators (KPIs) that significantly impact realization and collection rates, many of which are accessible through Clio.
When examining the business strategies that most profoundly influence realization rates in law firms, the top three are:
- Email bill sharing: Law firms that directly email bills from Clio realize rates 25% higher than those that do not (91% compared to 73%).
- Outstanding balances summary: Firms utilizing this feature to follow up on unpaid bills achieve realization rates 26% higher than those that do not (88% compared to 70%).
- Bulk billing: Law firms employing bulk billing observe realization rates that are 21% higher than those not utilizing the feature (94% compared to 78%).
Similarly, when assessing the business tactics with the greatest impact on collection rates, the top three are:
- Outstanding balances summary: Firms leveraging this feature experience collection rates 5% higher than those that do not (90% compared to 86%).
- Email bill sharing: Firms utilizing email bill sharing achieve collection rates 3% higher than those that do not (90% compared to 87%).
- Trust requests: Firms utilizing this feature realize collection rates 3% higher than those that do not (90% compared to 87%).
By focusing on these key levers within their business operations, law firms can enhance their realization and collection rates, ultimately optimizing their financial performance and client relationships.
