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Legal Automation

Law Firm Billing: Invoice Adjustments

Law Firm Billing is a crucial element of running a successful law firm. It is how you get payments for your work, pay your office bills, pay your employees, and reimburse yourself. If done inaccurately, your billing practices can jeopardize the very survival of your firm. That’s why it is really important to apply and execute adequate billing habits.

If there’s something we all enjoy, it’s a sale. Everyone goes for a good negotiation. This is not irregular when it comes to invoicing and discount- who wouldn’t like a little discount on a bill?

law firm billing

As a lawyer, this is an applicable approach for appealing to clients and encouraging rapid payment of a bill. A discount can be an adequate marketing tool if used accurately and selectively, providing your services with new clients and a huge profit.

Read Also – Top Law Firm Problems with Possible Solutions

But it’s not always profitable when clients ask for discounts according to their needs and wants. You have to take care of finances and decide when your firm can offer discounts and when can’t, as if you accept every demand of your clients then they might think of you as a pushover who can give up anything.

There are numerous different kinds of discounts you can offer. The most familiar ones include:

discount types for law firms

While you might see them called different names, the ruling principle is the same for all kinds of discounts: encouraging purchases and fast payments.

Read Also – Invoice management for Law firms

Advantages of offering discounts

The advantages of offering discounts are quite clear- namely, it increases the possibility that your client will pay you faster (and when you’re a busy lawyer, the sooner the better!).

But this also means lesser worries for you – one less payment to send a reminder for, one less client who might not remember to pay or open your bill and choose to get to it at the end of the month when they pay all their other bills.

Because a discount operates in the form of a bonus or reward, it has a powerful psychological impact. It is hard to turn down the chance to save some money, right?

In this situation, you’ve given your clients an easy method to save money, which needs only earlier action than they will be needed to take behindhand. Because the capability to save money is clearly defined, a client is unlikely to reject the opportunity.

How to calculate discounts

Once you choose a kind and percentage of discount to offer, the calculation part is really simple.

For instance, if you choose to offer a quantity discount of 10% on an invoice total of Rs3,400, you would offer a discount of Rs340. Calculation: total bill / 100 x discount percentage = discount price.

But if you’d like to dodge the maths, invoicing software like Legodesk will automatically calculate your discount amount based on the percentage you choose.

Through invoice software, there’s no requirement to open the calculator app on your phone. Just enter the discount percentage you’ve picked and the software will take work on the rest. For instance, if you offer a 10% discount on an order of Rs150, the discount will be Rs15. In invoicing software, you only need to enter 10%, the rest will be handled by the program.

Which Invoicing software to choose?

It can sometimes be suitable to offer your clients a discount. When it comes to your bills, it’s effortless to calculate and add discounts if you have the appropriate tools. That’s where invoicing software comes into play.

There is much software available in the market for accounting and invoicing purposes but Legodesk is one software that is emerging up right now. It is a cloud-based integrated legal management software created for paralegals and law firms of all sizes.

If you were looking for invoicing software then Legodesk is best for you. Through Legodesk’s finance management section, you can create and save online invoices, add discounts to the invoices according to your and your clients’ needs, and reduce the payable price. 

You just have to enter the discount percentage in the invoice and the software will automatically calculate the discounted price. Aside from adding discounts to invoices, you can also edit the previously created invoices and send them to clients automatically.

Read Also – Difference Between Billing and Invoice

Working with Legodesk comes with some other advantages as well:

  • Discounts can be applied to each invoice
  • Calculation of the discount is automatic
  • By using the invoice template, you can avoid common invoicing mistakes

Along with invoice management, you can explore various different features of Legodesk like case and task tracker, conduct online legal research, unlimited storage space, generate documents, client portal, and whatever else you need for your law firm. You just have to signup with your Gmail account to get a 14-day free trial and explore all the useful features.

Try our all-in-one Legal Practice Management Software       START FREE TRIAL!

by Arjita Sharma

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