--- title: "Accounts receivable management for law firms" description: "Accounts receivable management for law firms: outsourced accounts receivable: aging reviews, statements, dunning sequences, phone follow-up and cash." url: https://ledgerbpo.com/industries/law-firms/accounts-receivable/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Accounts receivable management for law firms Accounts receivable management for law firms is delicate: the person owing the invoice may be mid-litigation, emotionally stretched or a long-standing corporate client with its own AP process. Our DunningDesk cadence for firms is deliberately gentle, starting with a statement and a reminder, then a courteous first-party call from a billing agent in the firm's name, with the responsible attorney able to hold any matter. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for law firms and solo practitioners Where a retainer is in trust and the engagement letter allows, we prepare the transfer schedule rather than chasing the client. Aged receivables, by attorney and matter, reach the managing partner every week. ## What is accounts receivable outsourcing? Accounts receivable outsourcing means a remote team manages the money your customers owe you: tracking invoices from issue to payment, sending statements and reminders, logging disputes, and reporting aging and days sales outstanding. The provider works inside your accounting software under your brand. You keep the customer relationship and decide on credits, holds and escalations. ## What we handle for law firms and solo practitioners - Send statements and reminders on a cadence the firm approves per practice area - Make courteous first-party calls in the firm's name, never as a collection agency - Prepare transfer schedules where earned fees can be drawn from trust - Hold any matter on the responsible attorney's instruction - Report aged receivables by attorney, matter and practice area weekly ## The KPI that matters here Collection rate above 90% of billed fees within 90 days and no invoice past 60 days without a logged contact or a hold. ## Law firms compliance notes ### IOLTA and trust accounting (US and Canada) Client funds sit in a separate trust or IOLTA account with an individual ledger per client, and the firm may never hold its own money there beyond what the rules allow for bank charges. We support the supervising attorney by keeping the client ledgers current, preparing the monthly three-way reconciliation and flagging any negative client balance the same day. We never have signing authority on trust accounts and never move client funds; the attorney approves and executes every transfer. ### SRA Accounts Rules (UK) Firms regulated by the Solicitors Regulation Authority must keep client money separate, reconcile client account at least every five weeks, return client money promptly when there is no longer a reason to hold it, and obtain an accountant's report within six months of the period end unless exempt. We prepare the reconciliations and the working papers for the COFA and the reporting accountant; the firm remains responsible for the client account. ### Retainers, earned fees and transfers An advance fee deposit is a trust liability until the work is done and invoiced. We prepare the transfer schedule showing which earned fees may move from trust to operating after the invoice is issued and any required notice period, and the attorney authorizes the transfer. Revenue is recognized when earned, not when the retainer is received. ### Costs advanced and disbursements Amounts the firm pays on a client's behalf are recorded as a receivable from that client and matter, not as firm expense. In the UK, disbursements need correct VAT treatment depending on whether the firm acted as agent. We track each cost to its matter and confirm the VAT position with the firm's accountant. ## Law firms software we work in - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - Clio - LeanLaw - CosmoLex - PracticePanther - LawPay - [All 50 platforms](https://ledgerbpo.com/software/) ## More for law firms and solo practitioners Other services for law firms - [Bookkeeping](https://ledgerbpo.com/industries/law-firms/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/law-firms/invoicing-and-billing/) - [Accounts payable](https://ledgerbpo.com/industries/law-firms/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/law-firms/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/law-firms/month-end-close/) - [Financial reporting](https://ledgerbpo.com/industries/law-firms/financial-reporting/) - [All law firms services](https://ledgerbpo.com/industries/law-firms/) Accounts receivable in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/accounts-receivable/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/accounts-receivable/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/accounts-receivable/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/accounts-receivable/) - [The full accounts receivable page](https://ledgerbpo.com/services/accounts-receivable/) ## Frequently asked questions ### How do you chase a law firm client without damaging the relationship? The cadence is set by the firm and can differ by practice area, with family law clients handled more gently than corporate clients. Every contact is courteous, factual and made under the firm's name. Any attorney can place a matter on hold instantly. We are a first-party billing desk, not a collection agency, and we never threaten action. ### Can you apply trust funds to an unpaid invoice? Only the attorney can authorize a transfer from trust, and only where the engagement letter and the rules allow it. We prepare the transfer schedule showing the invoice, the client's trust balance and the eligible amount, and record the entries once the attorney executes the transfer. We never move client funds ourselves. ### What does the weekly receivables report show? Open invoices aged by 30-day bands, split by attorney and practice area, with columns for costs advanced, promises to pay, disputes and holds. A short note lists the top ten balances and the next action for each. The report reconciles to the operating ledger so the partners see the same figures as the financial statements. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/law-firms/accounts-receivable/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt