Prevent revenue leakage and improve realization with prebilling modernization
A reliable way law firms can improve their revenue without adding new work or new clients is to implement digital prebilling for improved realization. Below we elaborate on how digital prebilling increases your law firm revenue and profits.
1) Digital, automated prebilling enables greater billing speed and accuracy
Collecting timely input from fee-earners can be difficult, leading to billing delays and inaccurate invoices that are rejected by clients. Digital prebill editing lets firms benefit from a controlled workflow and a simplified, coordinated process — one in which all stakeholders can participate from desktop, laptop, or mobile devices. Users can easily edit digital prebills whether working in the office or remotely, and integration with your financial management system provides essential access to real-time billing data, reduces manual input, and minimizes inaccuracies caused by the re-keying of information by multiple users
An accurate bill is one that is paid faster and fully. Moreover, the improved process involved in digital prebilling lowers administrative costs and time, resulting in greater profits.
2) Improved process visibility equals faster payment
Implementing a digital prebilling process speeds bill generation, distribution, and review processes in part by providing better visibility, which allows finance teams to track and manage all stages of the billing lifecycle and identify and remove bottlenecks so that bills get out the door more quickly. In addition, lawyers can quickly review and mark up draft prebills as part of a coordinated workflow, eliminating the need to print, collate, ship, and recollect paper. As a result of these process improvements, billing teams can focus on higher-value tasks, including improved client delivery and invoice and collection services. These tasks contribute directly to revenue realization.
Process speed matters because billing delays result in delayed or reduced revenue. Real-time integration with financial management system also ensures that more time can be included in each invoice , reducing work in progress (WIP) lock-up at month-end. Without an integration between your financial management system and prebilling software, a lot of lawyers manually turn in time late, and it doesn’t get included on the prebill.
3) Billing compliance leads to improved realization
Complex client billing requirements can be challenging for lawyers and staff to follow, and with the rising use of e-billing , firms must adhere to even more rigorous rules. Additionally, manually reconciling a high volume of draft bills can significantly complicate and extend billing cycles. Digital prebilling software that natively integrates with your firm’s financial management system makes it easier for your professionals to adhere to client guidelines because firms often maintain client billing guidelines directly in the financial management system.
And when you deliver accurate invoices that comply with billing rules, you achieve faster revenue collection and improved realization rates for your firm, in addition to improved client satisfaction and retention . You also avoid the expense of resolving inaccurate bills and thereby boost your overall profits.
Prebilling process modernization can be challenging without the right technology, the right expertise, and a realistic change management plan.