uLawPractice Blog

KEEPING TRACK OF YOUR INVOICE BALANCE

Posted by Terry Curtis on May 23, 2017 11:22:57 AM

INVOICE BALANCE REPORT GENERATION

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Invoices are sent to the client for the case at hand once the matter has been closed or if it requires interim billing. Following an invoice, clients settle their dues with the lawyer(s) handling the case.

When a client transfers the money owed to the attorney or firm after the invoice has been raised, it is deposited into the general account, with the client's details and General ledger updated for future references and audits.

Oftentimes, this amount is held as a retainer in Trust accounts for invoice payment and disbursements.It is important to be continously tracking money and where it goes: whether it's owed by the clients, or if it is stored in Trust accounts. Paying attention to these elements is crucial to ensure efficient cash flow.

While handling multiple clients and working on a time crunch, lawyers might be hard pressed to keep adequate record of transfers from clients into Trust accounts. Tracking these transfers into the respective accounts is of utmost importance, however. So is ledger maintenance, because it's mandatory for Legal accounting procedures and audits.

Ledger maintanence and constant follow-ups on invoices can easily be made with the help of legal accounting software such as uLaw. Once the invoice is raised, uLaw keeps efficient tracking of paid, unpaid invoices, retainer amounts, and it also highlights aging invoices and pending trust transfers.

With uLaw, a complete report of the invoice balance comprising the entire client database can be generated in 1-Click.  The report highlights:

  • Clients with the oldest unpaid invoice
  • Client accounts with highest balance
  • Highest Trust Balance Pending transfer
  • Clients who owe the most

One of the most prominent aspects of this feature of uLaw; aging invoices that have been due over a long period of time can be determined and the client involved can be contacted to be made aware of the amount and interest levied on the account for defaulting on his payment date.

The aging invoices can also be written off, depending on the duration from issuance of invoice, and can be used by the firm to obtain a tax recovery.  

This complete report helps keep track of the monetary aspects of the firm and aids in taking appropriate action to maintain a good cash flow in  business. Combining the principles of practice management and legal accounting, this report adds great value to attorneys. With the introduction of analytics in uLaw, the invoice balance report has been updated to provide analytics for the same. The report can be generated by going to Documents Generation -> Others -> Invoice Balance.

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Topics: Blogs