Law Office Management
LOMA : Articles
Collection Forms

By Patricia Yevics
June 29, 2000 

30 Day Letter
60 Day Letter
90 Day Letter
Letter After Client Promises (Some) Payment
Letter After Client Promises (Some) Payment And Does Not Send Payment
Questions to Ask When First Contacting Client for Payment
Billing and Collection Policy of Solo Law Firm
Daily Cash Receipts
Daily Cash Flow Report

Thirty Day Letter

Dear

In reviewing our accounts receivables I noticed that we have not received payment in the amount of $___________ for invoice #________, dated __________________________.

I am sure this is just an oversight on your part. If, however, you have a problem with the service we have provided, please contact me immediately so we can discuss the matter.

If I do not hear from you I will assume that you have no difficulty with the service or with paying the invoice and will look for payment by (Date).

Sincerely yours,

 

Solo Law Firm

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Sixty Day Letter

Dear

It has been thirty days since my last letter and we have not heard from you regarding payment. According to our fee agreement, all invoices must be paid within 30 days of receipt of the invoice. If we are to continue to provide you with a high level of service, it is critical that we have invoices paid timely.

Please contact me immediately if you have any problems with the payment of this invoice. If I do not hear from you, we will expect full payment by (Date.)

Sincerely yours,

 

Solo Law Firm

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Ninety Day Letter

Dear

I have not had any response to either of my letters requesting payment of the past due invoice #______________ in the amount of $____________________________. I regret that I am at the point where I cannot extend any further time to you for the payment of this invoice.

Effective immediately, we will be unable to perform any further work on this matter until the invoice is paid in full.

Please contact me so that we may resolve this matter.

Sincerely yours,

 

Solo Law Firm

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Letter After Client Promises (Some) Payment

Dear

Per our discussion on (Date) you have agreed to pay $_____________ on invoice # by (Date). We know that you will live up to this agreement.

If there are ever any problems or difficulties with payments or invoices, please contact us immediately so that we can resolve the matter quickly. We want to assist you in every way possible and we are hear to answer any questions you may have about our policy and procedures.

We look forward to a continued good working relationship.

Sincerely yours,

 

Solo Law Firm

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Letter After Client Promises (Some) Payment
And Does Not Send Payment

Dear

Although you had promised to send payment in the amount of $___________________ by (Date) we have not received any payment.

I regret that I am at the point where I cannot extend any further time to you for the payment of this invoice.

Effective immediately, we will be unable to perform any further work on this matter until the invoice is paid in full.

Please contact me so that we may resolve this matter.

Sincerely yours,

 

Solo Law Firm

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Questions to Ask When First Contacting Client for Payment

The key when contacting a client for payment is to get the client to tell you what the problem is and why it is not being paid. This should not be confrontational but conversational.

1. Have you received the invoice?

This forces the client to admit that he/she has received it. If he/she says it was not received, ask to check the address and send another copy immediately. After one week, if no payment is received, contact the client again.

2. Ask if they understand the invoice or if they have any questions?

If they have questions or say they do not understand, tell them you will have the lawyer call immediately to answer any questions.

3. Ask if they have any problems with the service being provided?

If the answer is yes, tell them you will have the lawyer call immediately to answer any questions.

4. If they have received the invoice, have no questions or problems, ask when you may expect payment?

Make note of the date and follow up if payment is not received.

5. Do not accept vague statements like "I'll see what I can do."

Make certain the client gives a specific action that is going to be taken. If possible it should include the amount to be paid and when.

6. If the promise for payment is to take farther away than a few days, send a short note indicating the amount to be paid and when.

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Billing and Collection Policy of Solo Law Firm

In order to provide our clients with the best possible service and manage our practice efficiently, it is necessary that we have a fair and reasonable billing and collection policy.

1. We will expect all clients to pay a retainer fee agreed upon at the initial interview. This will placed into a trust account and will be used to pay for the last invoice at the conclusion of the matter. Any money that is not used for that invoice will be refunded to the client immediately.

or

1. We will expect all clients to pay a retainer fee agreed upon at the initial interview. This will placed into a trust account and will be used to pay for time and expenses as work progresses. You will receive a monthly invoice that will list the balance of your retainer. If necessary, you may be required to replenish the retainer.

2. Invoices will be sent out monthly and will include the details of the time spent.

3. Payment of invoices will be expected within in 30 days of receipt.

4. Work will stop on all work if invoice goes unpaid after 90 days or no payment plan is established and maintained.

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DAILY CASH RECEIPTS

Date:____________________________________

Payments expected

Client Amount Rcvd

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

Other Payments Received:

Client Amount

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

 

Total Received: _________________

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DAILY CASH FLOW REPORT

DATE:_____________________

Operating Account Balance _______________

Amount Expected _______________

Invoices to be paid _______________

Anticipated Balance _______________

Operating Account Balance _______________

Actual Deposit _______________

Actual Payments _______________

Final Balance ________________

Payment Expected:

Client Amount Rcvd

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

Total: ______________

Invoices Needed to Be Paid:

Vendor Amount Due

_____________________________________________________

_____________________________________________________


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