Creating invoices want to pay your clients

T
hough it sounds like an oxymoron, great invoices do
exist. In fact, creating invoices that your clients actually
want to pay is an indicator that you’ve mastered the art
of communicating the value you bring to your clients
as a lawyer. As we approach mid-year, now is the perfect time to
double down on collecting receivables and to reassess your billing
practices to ensure that the remainder of 2017 will be profitable.
Consider it a mid-year billing review. Every month, you send a
tailored marketing communication directly to your clients in the
unlikely form of their invoices.
CREATING
WANT
TO PAY
Invoices
Your Clients
By Terrie S. Wheeler, MBC
DETAIL IS KING
Invoices are one of your best marketing
tools because they allow you to communi-
cate your value in a very tangible way on a
very regular basis. There is nothing worse
than receiving a call from a client ques-
tioning an invoice. To question an invoice
is to question your value as a lawyer since
you are the service provider. Have you ever
heard the phrase, “show me, don’t tell me?”
Though it may feel like it’s a time drain, if
you want to maximize revenue, minimize
write-offs, and all but eliminate accounts
receivable, detailed invoices will pay off for
you. Here’s what I mean:
24 | www.AttorneyAtLawMagazine.com

WHAT NOT TO DO:
6/11/17 3hrs Wrote AAL article
WHAT TO DO:
6/11/17 3 hrs Wrote article for Attor-
ney at Law Magazine outlining the ways
in which attorneys can use invoices as a
marketing tool to sell the value they deliver
thereby increasing their annual revenue,
reducing write-offs, and eliminating re-
ceivables; provided list of tangible action-
oriented tips for readers.
THE BIGGER PICTURE
While some attorneys struggle with stay-
ing on top of time entries (let’s be honest –
most of you), it’s important to acknowledge
that your invoice is only as effective as the
value a client perceives when reading it. In
your invoice, be sure to explain how your
actions will have an impact on the bigger
picture of their case or matter.
THE RECEIVABLES
CONUNDRUM
Our ideal clients pay promptly, are
thankful and actively recommend us to
others. While viewed as an asset on your
balance sheet, it’s not uncommon for at-
torneys to have accounts receivable that are
months – or even years old. If you collect
retainers from your clients, add a clause to
your retainer agreement that when the bal-
ance reaches (pick a number), the firm will
bill the credit card on file to replenish the
account.
INVOICE TIPS
Consider the following invoicing best
practices:
Electronic Invoicing. If you’re
not using an electronic invoicing system,
consider doing so. Sending electronic
invoices will save you time and allow you
to easily track accounts receivable. At
PSM, we use www.Harvest.com. There are
myriad practice management tools that
include the ability to send invoices online
via email.
Online Payment Option. Nothing
makes paying an invoice more convenient
for clients than the option to pay and
manage your accounts receivable online.
Services like ClientPay offer this seamless
functionality.
Branded Invoices. A branded
invoice conveys the look and feel of your
law firm’s brand. Not only do branded
invoices allow you to boost your brand
recognition, but they also show your clients
that you’re professional at every level of
your practice.
Bill your Time Daily. Lawyers don’t
like to record time (neither do I!). However,
you need to enter your time at the end of
each day before you leave the office. If you
don’t, you are leaving a lot of time (and
money) on the table.
Details, Details, Details. Take the
time to provide a detailed summary of the
services you provided, including how the
time you billed fits into the bigger picture.
Pretend You Are the Client. As
you record your time, pretend you are the
recipient of the invoice. What would you
want to see to substantiate the time spent
on your behalf?
Retainer Letter. To avoid amassing
significantaccountsreceivable,outlineyour
payment policy directly in your retainer
letter, and include payment terms on every
invoice (Payment due upon receipt).
Retainer Collected. If you collect
retainers from your clients upfront, analyze
how accurate your past retainers have been.
Do you generally always have to ask clients
to replenish their retainers? If so, it might
be time to increase your retainer amount
for new clients.
Don’t Relent. Your clients hired you
to pursue an important legal matter on
their behalf. You worked hard and spent
the time on their case or matter. Don’t be
afraid to aggressively follow up with aging
receivables by setting up payment plans or
in extreme cases suing it out.
CONCLUSION
You work hard to serve your clients. You
bill them for your time, expecting they will
promptly pay you for the services you have
rendered. Many times, this chain is broken
– the part where your clients pay you. It is
important to use the tips above to ensure
that your clients not just pay you, but are
happy to do so because of the value you
bring to them.
Terrie S. Wheeler, MBC, is
the founder and president of
Professional Services Mar-
keting LLC. Terrie works
with her legal industry cli-
ents to ensure they com-
municate the value they deliver to clients
in their marketing strategies and in their
invoices. Terrie also serves as vice chair of
the MN Lawyers Board of Professional Re-
sponsibility, and teaches marketing and cli-
ent service at three Midwestern law schools.
You can reach Terrie at (320) 358-1000 or
TWheeler@psm-marketing.com.
“You work
hard to serve
your clients.
You bill them
for your time,
expecting they
will promptly
pay you for the
services you
have rendered.”
June 2017 Attorney at Law Magazine®
Minnesota | 25

Creating invoices want to pay your clients

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