Billing is the subject that requires the least introduction. So, I’ll not waste much time in creating the context instead straightaway let’s get into our primary topic.

Before I talk about ‘Billing Automation’, I would like to throw some statistics:

Firm Type	# Invoices/ month	Inv. Amount/ Month	Receipts/Month
Small Law Firms (<50 people)	30 – 100	0.5 – 1.5 Cr	50 Lac – 1.0 Cr
Mid-Size Law Firms (>50 And <100)	100 – 200	2.0 – 5.0 Cr	2.0 – 3.0 Cr
Large Size Law Firms (> 100)	> 200	> 5.0 Cr

Note: These are approximate numbers and are derived based on some research.

So, what do we infer from the numbers above?

1. It’s approximately 100+ invoices law firms create every month.
2. The total value of invoices is between 2.0-3.0 Cr.
3. Recovery/ Receipt is always lower than the total value of the invoice.

Plus, some more insight that we’ve seen from our experience.

4. A team of 5-8 people takes around 5-10 working days to create these monthly bills.
5. Average revenue leakage 25-30%.
   Revenue Leakage = Either bills are not created, or it’s created but not paid.

I know Mathematics is something that does not sound interesting to most. ☹️☹️

But its beauty is, when it’s correlated with the billing and receipts, it becomes very interesting. Specially the business owners love it! Isn’t it?? 😊

Don’t worry! We’ll keep it interesting only. We’re going to talk in the context of billing only.

So, the key issues with the manual process are:

• Less Invoices Created and Unpaid Invoices. i.e. Revenue Leakage (25-30%).
• Time-Consuming. Lack of Accuracy.

So, we know the issues with the Manual Process. And, if would say, that just one solution to these issues is ‘Billing Automation’.

I know what’s the question in your mind!

What’s Billing Automation?
Don’t worry! I’ll not go to any bookish definitions; we’ll keep it easy and practical. 😊

Suppose in a month your team worked on 65 different matters. These matters could be of any billing type Fixed, Hourly, Retainer or etc.

Yeah, we understand various billing types applicable to law firms. You may check our earlier post:

https://www.legalxgen.com/top-5-billing-types-used-by-most-law-firms/

Not all invoices are created
So, ideally, your accounts team should create 65 invoices (for 65 matters your team has worked on). But it does not happen. Because the accounts team mostly create the standard (big) bills only. Small assignments are slipped from billing.

Unpaid Invoices
Similarly, once you create and share the invoices not all clients are kind enough, that they’ll pay it on time.

Billing Automation
How about if you schedule a date say, the 1st or 5th of every month and your invoices are created automatically? Without any manual intervention.

Not only that, if there is a system that does follow up on unpaid invoices, on a certain frequency say 15/30/45 days or whatever you want. In the language you prefer. Again, without any manual intervention.

This is called Billing Automation and it boosts your billing by 25-30%.

It could sound theoretical…until you see Legalxgen. Please reach out to us at relationships@legalxgen.com  for a personalized demo.

Legalxgen is #1 in Law Firm Management Software. We help law firms to boost their Productivity & Profitability by 25-30% with much streamlined processes and reduced revenue leakage.