Using Your Billing Statements as a Marketing Tool

By Timothy M. Tippins, Esq.

Copyright 2001 by MatLaw Systems Corp.

            The court rules required that itemized billing statements be sent to the client no less frequently than every sixty days.  Given that virtually all the research indicates that more frequent billing results in a higher rate of collection, the practitioner who regards his or her practice as something more than a hobby is well advised to routinely bill every thirty days.

            During the initial consultation or at the time of retention, the attorney should explain his or her billing procedure to the client, emphasizing the importance of a solid and harmonious attorney-client relationship and that unnecessary costs, misunderstood charges, and unpaid bills pose problems to both attorney and client.

            The purpose of the discussion is to diminish the likelihood of legitimate misunderstanding, which is the most frequent source of client conflict.  Much misunderstanding can be avoided by discussing the billing issue up front.  The attorney should review a sample billing statement with the prospective client, going over its format point by point:

• description of services rendered
• date service rendered
• time expended/charged (e.g. 2/10's of an hour)
• person who performed service (i.e. which member of the practice team)
• application of hourly rate of team member and resulting $ charge for that service

          One procedure that can be helpful is to require your clients to sign and return a copy of each monthly billing statement, either indicating that they agree with each of the charges or noting any items that they may question.  If the client returns a bill with questions stated, a prompt meeting with the client should be scheduled to resolve them.  Under the rules, there is no charge for a meeting to discuss the bill.  Explain to the client how this procedure benefits both attorney and client by addressing these items before memories of the events fade so that needless misunderstandings are avoided.              

Another Marketing Hint!

          Most attorneys do many things for clients for which they do not charge.  Good client relations can be generated if "no-charge" items are referenced on the client's billing statement.  So, for example, if the attorney has sent the client a copy of a published court decision that bears on his or her case, that service should be listed on the bill and designated “NO CHARGE.”  The same is true if you decide not to charge for any other particular service, such a telephone call or a meeting that was held to discuss a previous bill.  Given the inherent strains in the attorney-client relationship in matrimonial cases, such opportunities to generate goodwill should not be ignored.  Think of this as a goodwill account with the client and that these “no-charge” items are “deposits” in the account.  There will be occasions when the attorney has to draw on that account, when he or she has to deliver bad news to the client, such as an unfavorable decision or an undesired delay.  At such times, the attorney will be thankful that he or she has made those deposits.