10 Reasons Why Locum Lawyers Should Bill Law Firm and In-House Clients Regularly

10 Reasons why Locum Lawyers should bill Law Firm and In-House Clients regularly, from Interim Lawyers Locum Legal Recruitment.

For many locum lawyers, the flexibility and diverse experience are key attractions, as well as the ability to control when and where you work, with plenty of time off if wanted. However, a more common pitfall than you might think, even for experienced locums, is irregular billing. Some locums appear reluctant to put their bill into a firm and seem to dislike dealing with the financial side of their work.

If you’re a locum lawyer working with law firms or in-house legal departments, here are ten reasons why you should adopt a regular billing schedule:

1. Optimise Your Cash Flow and Financial Stability

Really goes without saying! This is the most immediate and obvious benefit – as a self-employed professional, consistent cash flow is the lifeblood of your business. Regular billing, whether weekly or bi-weekly, ensures a steady stream of income, allowing you to manage your finances more effectively, plan for future investments, and reduce overall financial stress. However, think about it from the firm’s perspective as well – regular payments are much better for their cashflow too. Reduce your stress levels and bill.

2. Transparency & Trust with Clients

Regular billing provides clients with a clear and consistent overview of the work being performed and the associated costs. When invoices arrive frequently, outlining the hours worked and tasks completed, it builds trust and eliminates surprises. Clients appreciate this transparency, as it allows them to track their budget in real-time and understand the value you’re delivering. Conversely, a large, unexpected bill at the end of a long period can lead to questions, disputes, and erode the client relationship. Not only that, but they also get a large agency bill as well at the same time.

3. Reduce the Risk of Billing Disputes

The longer you wait to bill, the harder it becomes to accurately recall specific tasks, dates, and discussions. This can lead to discrepancies between your records and the client’s perception, increasing the likelihood of disputes. Regular, detailed invoices for smaller periods minimise this risk. Both parties can quickly review and reconcile the work, address any queries promptly, and ensure accuracy, leading to smoother payment processes and fewer headaches. This is one of the primary reasons we recommend invoicing regularly and promptly. You will probably not remember why you spent 6 extra hours on a Saturday dealing with a case 4 months ago..

4. Improve the Accuracy of Your Time Recording

Knowing you’ll be submitting an invoice frequently acts as a powerful incentive for diligent time recording. It encourages you to log your hours and activities daily, or even several times a day, while the details are fresh in your mind. Provides a strong audit trail for your work.

5. Professionalism

A locum who bills regularly and systematically projects an image of professionalism and organisation. It demonstrates that you are meticulous in your record-keeping, efficient in your financial management, and take your professional obligations seriously. This leaves a positive impression on clients, potentially leading to repeat work.

6. Client Budget Management

Law firms and in-house legal departments operate on budgets, and they need to track expenses closely. Regular, smaller invoices are far easier for them to manage and allocate within their budgetary cycles than large, infrequent sums. This helps them with their internal accounting and financial planning, making you a more convenient and preferred supplier.

7. Avoid “Scope Creep” and Set Clear Expectations

When you bill regularly, particularly with detailed breakdowns, it acts as a subtle mechanism to manage project scope. If a client starts requesting tasks that fall outside the initial understanding, seeing the accumulating costs on frequent invoices can prompt a discussion about scope adjustment, preventing misunderstandings.

8. Streamline Your Administrative Processes

Regular billing can actually streamline your overall administrative burden. Instead of facing a daunting task of consolidating weeks or months of work, you’re dealing with smaller, more manageable batches. This makes the billing process quicker and less prone to errors.

9. Expedite Collections and Reduce Debt Risk

The longer an invoice remains unpaid, the higher the risk of it becoming a bad debt. Regular billing means smaller amounts are outstanding at any given time, making them easier for clients to pay promptly. If an issue does arise with a particular invoice, it’s a smaller amount to resolve, and the issue can be addressed before it compounds. This significantly reduces your exposure to extended payment terms or, in worst-case scenarios, non-payment.

10. Leverage Your Value

By consistently demonstrating the work you’re doing and the hours you’re putting in, you continually reinforce your value to the client. Regular invoices serve as mini-reminders of your contribution, keeping your impact top-of-mind for the decision-makers. This can strengthen your position for future engagements and justify your rates.