Legal services are services offered to the public involving legal or law-related matters like issues of legal opinion, filing, pleading, and defending of lawsuits, etc. by a lawyer or attorney practicing law-related services. All these services require a fee, depending on the scope of work needed to be done. Whereas some law firms offer legal aid to those who have trouble affording such high fees and are often given for free or discounted. Like most service-oriented business establishments, those who are offering legal services assistance also need to forward a legal service invoice. Which is a formal way of collecting payment from a client. Read more about this in our article for today and to get you started with the invoice we have several free legal service invoice samples below.
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What Is a Legal Service Invoice?
An invoice is an accounting document that is issued by a provider of products or services to the client. It also serves as a legal record since it contains details about the goods acquired or services rendered, alongside other valuable information such as the prices/fees and terms of payment. A legal service invoice has more or less the same function, but of course, its content is fairly different. Which would contain lawyer’s fees, expenses, services and etc. This is why it is important for law firms to track their billable hours and create detailed invoices for their services. By doing so, law firms are able to bill their clients accurately and in a timely manner, so their legal services may be paid faster.
How To Create a Legal Service Invoice?
Before you can forward a legal service invoice to your client, may sure your law firm has the proper billing policy to ensure a steady flow when it comes to billing your clients. And that lawyers and other law firm employees have something to refer to, make it easier and faster to do. Most especially if the firm tends to get busy with a lot of clients and cases, it would be a loss if some clients are overlooked. With a proper billing process in place, every client is up to date, there would be less room for errors or discrepancies and law firms get to receive their payment in a timely manner. Also, there must be stable coordination between lawyers and the accounting department. Make sure that your accountant or finance team knows when your firm is sending bills to clients, what still needs to be collected, and what’s being written off. Gaps in communication can cause confusion and delay the payment process. Take note, each invoice would once again depend on the billing policy and invoice requirements per company. As of now, we shall tackle just the below are basic components that comprise a legal service invoice.
I. Client’s Details
Every invoice would need the details to whom the document is addressed, which means including the details of your client such as the name(s), their address, and if it permits their contact details.
II. Law Firm’s Details
Your firm’s details are as important as your clients, and if you are part law firm with several other lawyers or attorneys, make sure to indicate the name of the lawyer who has assisted the client.
III. Invoice Number and Dates
An invoice number is a unique sequential code that must be present in all invoice documents, also don’t forget to include the date on which the invoice was created and the payment due date. In some cases, the payment due date would depend on the initial agreement between the lawyer and the client.
IV. Invoice Billing Descriptions and Rates
Legal firm billing descriptions should neither be too long nor too short. They should provide the right amount of context and information so the client may firmly understand what they are paying for, alongside with the rates you are charging them for. Make sure before you send your invoice, your client has a clear understanding of the different service rates you are charging them for. Clear billing descriptions lead to fewer disputes later on in a case.
V. Billing Codes
Over time, your law firm may be experiencing a high influx of clients and some legal matters could go on from a few weeks to several months. To keep up, perhaps you want to establish certain billing codes you can incorporate in your legal service invoice. Billing codes convey, at a high level, which activities or expenses a client is being billed for. This may be done in words such as meetings, revisions, research and etc.
VI. Payment Method and Terms
Indicate the payment method and terms in your invoice. This section will again depend on what you and are your client has initially agreed on.
What Is a Law Firm?
A law firm is a business entity that engages in the practice of law and is represented by a group of lawyers.
What Is a Billable Hours?
Billable hours are the number of hours spent on tasks connected to a project. These hours will be used to determine how you charge your clients.
What Is a Legal Aid?
This is a service provided by a lawyer free of charge or for a nominal sum, to indigent persons in need of such help.
Make sure that your clients are properly billed by creating a complete and detailed legal service invoice. If you need any assistance with your invoice, feel free to browse around this article for our free sample templates.
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