Where Is Your Billing Process Losing Money?
Most law firms collect 85–88 cents on the dollar. XPRTS-built billing systems at Bay Legal collect 98.5%. Answer 7 questions and find out exactly where the gap is in your process.
Your Results
Use these results as a starting point for a deeper review of your billing configuration, AR process, payment workflow, and reporting.
Request a Free Strategy Review →Most law firms collect 85–88 cents on the dollar. The gap between 88% and 98.5% collection rates is almost entirely a systems problem, not a client problem. This audit scores your invoice generation, payment methods, AR follow-up, trust accounting, and financial visibility — and shows you exactly where the revenue is leaking.
Frequently Asked Questions
What collection rate should a law firm target?
Industry average for small law firms is 85–88%. XPRTS-configured billing systems at Bay Legal, PC consistently achieve 98.5%. The gap between 88% and 98.5% on a $400,000/year firm is $36,000 in additional annual revenue — from the same clients and the same completed work.
How does Clio billing automation improve collection rates?
Clio automates invoice generation on a schedule (so invoices always go out on time regardless of staff availability), embeds online payment links directly in every invoice (so clients can pay in one click from their phone), and sends automated payment reminders at 7, 14, and 30 days past due (so overdue invoices don’t depend on a staff member remembering to follow up). Each of these removes a friction point that causes invoices to go unpaid.
What is trust accounting and how does Clio handle it?
Trust accounting is the management of client funds held in a firm’s IOLTA account — funds that belong to the client, not the firm, until earned. State bar rules require strict separation of trust and operating funds, detailed ledgers for each client, and regular three-way reconciliation. Clio automates client trust ledgers, trust-to-operating transfers, and the three-way reconciliation — reducing the risk of trust accounting violations significantly.
How long does it take to improve a law firm’s collection rate?
Most collection rate improvements are visible within 60–90 days of implementing Clio billing automation. Invoice generation becomes consistent, payment reminders fire automatically, and online payment adoption increases as clients discover the convenience. Full impact — including reduction in 90+ day AR — typically stabilizes within 6 months.
What happens to clients with 90+ day outstanding invoices?
Invoices past 90 days have significantly reduced collection probability — research suggests under 50% collection likelihood at 90 days, dropping further at 180 days. XPRTS recommends automated reminders that prevent invoices from reaching 60 days in the first place. For existing 90+ day AR, a structured outreach sequence (offer a payment plan, send a formal demand letter, evaluate collection referral) is the correct response.
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