In every law practice, there are critical steps that bookend the actual legal work—those that occur before you begin and after the job is done. These “bookends” play a major role in efficiency and profitability. Among them, your invoicing system is one of the most vital to get right. If it’s slow or inconsistent, you’re likely losing time and money on every case.
Five Ways to Improve Your Law Firm’s Billing Process
One mid-sized law firm we worked with handled many insurance clients, which required invoices within 15 days of each new month. Any billing outside that window was rejected. The issue? Their internal billing process was slow and dependent on attorneys submitting time entries—many of whom were consistently late. The result was chaos every month and significant lost revenue.
Even if your process isn’t that problematic, inefficient invoicing can still hurt your cash flow. Here are five tips to make it better:
1. Be Clear About Your Billing Policies — From Day One
Clients often complain about poor communication. Avoid this by clearly outlining your billing process upfront. Include your fees, payment terms, and accepted methods in your engagement letter and client onboarding materials. Then, most importantly, follow through. Inconsistency can lead to confusion or frustration.
Explain whether you charge by the hour, offer flat fees, or a mix. Clarify what services are covered in those fees to avoid misunderstandings later.
2. Use Standardized Invoice Templates
Standard invoice templates help reduce errors, save time, and ensure compliance with jurisdictional requirements. Clients will know exactly where to find what they need, and lawyers won’t waste time formatting or writing from scratch.
Also, adopt standard billing narratives to promote clarity and consistency across all bills.
3. Bill Promptly and Often
The sooner you bill, the more likely you are to get paid—especially when your work is still top of mind for clients. Delay too long, and you risk frustration or nonpayment.
Interim billing (biweekly or monthly) smooths out cash flow and makes payments more manageable for clients. It also prevents “sticker shock” from large lump-sum invoices at the end of a matter.
4. Make It Easy for Clients to Pay
Remove barriers to payment by offering multiple options—credit cards, e-transfers, and even payment plans. Use invoicing platforms that include direct pay links. Yes, credit card processing fees exist, but they’re often worth the faster payments and reduced collections work.
Studies show law firms that accept cards get paid up to 39% faster. And clients appreciate the convenience—some even earn rewards on those payments.
Flexible payment plans can also boost access and reduce default. Clients appreciate predictable monthly amounts, and many firms report strong results with minimal missed payments.
5. Automate and Delegate the Process
If you’re a senior lawyer, billing probably isn’t the best use of your time. While you should still review final invoices and make any necessary adjustments, the majority of invoicing tasks can be handled by support staff or automated systems.
Many law practice management tools already include built-in invoicing features that track time, generate bills, and streamline approvals. If you haven’t yet, explore these systems or invest in one that fits your workflow.
Final Thoughts: Make Invoicing Work for You and Your Clients
Take some time to evaluate your firm’s billing process this month. Apply the five strategies above to make invoicing easier, faster, and more client-friendly.
Getting your invoicing right not only speeds up payment and improves cash flow, but it also saves administrative effort and keeps clients satisfied. That’s a win for everyone.
