Currently, law firms face three main challenges; resistance to change, lack of updated technological knowledge, and inefficient work systems. COVID-19 has brought these issues to the forefront, disrupting business as usual. There is no doubt that the legal industry is very conservative, particularly in embracing changes. There are three significant challenges to the traditional legal business model due to the changing client demands.
A law firm’s success depends on its productivity and profitability. Legal practices that are productive and profitable have the resources necessary to offer better services, pay their partners and employees well, and recruit top talent.
It isn’t easy to increase profits, but the principle is simple; profits must exceed operating and overhead costs. This article will discuss how LawBillity can help you boost revenue and profits.
Key Factors That Affect a Law Firm’s Bottom Line
1. Law Firms’ Resistance to Change
As the legal profession transforms, lawyers should adopt modern innovations. Yet, digitization is often extremely slow, especially in service-oriented industries. About one-third of US law firms consult technology companies or hire someone to update their technology.
Still, a third is a relatively small number. Disruptive technologies have been slow to gain traction with small businesses, which ultimately leads to greater productivity despite the cost of implementing them and training employees. In addition, the report noted that experienced and specialized attorneys have a lower motivation to learn new technologies affecting legal services, disrupting the delivery of legal services.
The best place to start is digitizing all aspects of your business. Consider using legal time and billing software developed by a third-party service provider. You can track legal expenses and time on any mobile device, online or offline.
2. Inefficient Communication Systems
All clients today demand that their law firms provide excellent service and legal services on time, no matter the circumstances. In an era when client reviews matter, attorneys need to do more to earn client approval. A client portal is an effective way to communicate with clients.
Law firms can increase their profitability and client satisfaction by improving their communication platforms. Therefore, your legal firm must invest in a client-focused portal. The system should integrate all organizational communication into one place while allowing real-time cloud access.
3. Unreliable Work Systems
The legal industry had to adapt rapidly to maintain profitability and operations. Most firms haven’t updated their business models to cope with the latest COVID-19 changes in the business. To succeed in the future, law firms will need new business methods – specialized or diversified. Firms will adopt different operations methods based on the risks and opportunities. A firm must invest in the right tools and technology to identify these factors, technology that is scalable and adaptable to the legal industry.
As a result of handling sensitive data, law firms are prime targets for cyberattacks. Sensitive data is another reason data protection is more stringent for law firms. Due to the heavy focus on data protection, it has become mandatory for companies to comply with GDPR and prioritize data security.
Law firms may face high costs for protecting client data and proprietary information. Therefore, the firm should invest in effective data security initiatives, such as crisis management and disaster recovery.
Increasing Profits with LawBillity
Legal services are highly competitive. However, innovation can help you gain and maintain a competitive edge in the market. Innovative technology can increase your firm’s revenue by automating processes, such as billing and collection.
Why You Should Consider LawBillity for Your Law Firm
Easy Solution for Legal Time Tracking
When the realization rate of a law firm is below average, it is invoicing less than they do in billing. These numbers directly indicate the firm is not practicing accurate timekeeping. It is easy to record every billable second from any device with LawBillity, which allows users to record each billable second from any device.
You can quickly lose a receipt and in the long run, small expenses add up significantly. Ensure you get a refund for legal costs by tracking all costs. Tracking expenses is as simple as taking a picture of a receipt and adding it to the matter, assigning a UTBMS code, or creating custom expense categories.
Reduce Administration Time
As a law firm expands and adds clients, it is common for traditional firms to increase their resources to accommodate their expansion. As the firm grows, it will have difficulty handling administrative tasks such as filing documents, billing clients, and tracking time.
LawBillity can handle all the hard work. The handy tool keeps track of travel and court times, sends invoices, records expenses, and prints reports. LawBillity frees a firm’s lawyers to concentrate on what they do best, practice law. LawBillity is also a useful app for law firms that struggle to organize their finances. Using the app, you can increase efficiency, calculate income taxes more efficiently, and generate detailed business insight reports.
Get Paid Faster with Online Payments
The sooner you bill a client the quicker you will get paid. By having the ability to turn tracked time into a branded invoice in just a few clicks will reduce billing time substantially. And, by offering a client the option to pay their bill online will increase payment time by up to 40%!
Get Started with LawBillity Today
Increasing your law firm’s profitability and productivity requires effort and strategy, but it’s worth it. It is essential to build a growth-oriented system and invest in marketing to acquire new clients. Legal firms should anticipate their clients’ needs and go above and beyond their expectations to maximize profits and compete. Lastly, automate tasks using advanced technology. Try LawBillity, and get a 14 – day free trial today to easily manage your legal billing and time.