Billing Basics 101

      I don’t know why I didn’t do this previously, but I have started to attach detailed cover letters with every bill advising the client of the status of the matter, what strategically has been accomplished, and what strategic tasks are yet to be completed in order to achieve the clients goals. I encourage the client to review the detailed narrative in the bill so that they understand not only what was done but why it was being done. I also note that there are narrative items in the bill which did not result in a charge to the client because they were administrative in nature or did not add value to solving the clients legal issues. Most particularly, I note that the client phone calls between myself and the client are not charged because we do not want any client hesitating to call us if and when they have a legal problem. Of course, charging clients for ten or fifteen minute phone calls creates a huge disincentive for clients to pick up the phone. If the phone call was truly significant, then I will have had to do something after that phone call by way of drafting or .PDF mark-up which does get billed for.

      By providing cover letter on each client bill, I not only take advantage of an opportunity to educate the client as to where we are in the matter, but no doubt provide additional incentive for the client to pay the bill in a timely fashion. Simply receiving an invoice without a cover letter provides little incentive to the client to actually focus on the invoice.