Each month the
changes in computer technology allow businesses to process more
information faster, with more accuracy and connect to more people.
Law firms are taking advantage of this increased computer
capability to transfer legal documents through EDI (electronic
data interchange), correspond with their client through e-mail and
access client's computer systems remotely. Following the
advancement in hardware, software companies have developed new
programs to increase security and provide more options in file
transfer. Most firms are now using some type of e-mail system to
communicate with their clients and some type of Internet access to
retrieve information from the World Wide Web. As attorneys become
comfortable with basic data interchange and start to realize how
much information is available through the internet and how much
can be accomplished through electronic transfer, they usually
start to request additional capabilities of their computer
systems. A new area of law firm, client data interchange, is
electronic billing, where a firm can send a client their bill,
through e-mail or file transfer to the clients web site and
received their fees through wire transfer. Receiving payment of
fees electronically is not new but the e-billing process that
eliminate producing a bill and mailing it to the client has just
started to develop. The bill can be sent directly to the person in
the client's office that reviews the bill. They can approve it and
authorize payment by electronic transfer to the firm's bank
account within one or two days. To insure that the client receives
the electronic bill, the sender can be automatically notified,
through the e-mail system, when the bill has been received and
opened by the client. If the client has a question regarding legal
services or expenses, they can simply reply to the e-mail for a
quick response. Sending a copy of a bill is easier than sending
the original since most billing systems retain an image of the
bill which can be resent electronically to the clients office. No
more pulling a bill from a file cabinet, copying and mailing, then
re-filing.
The greatest
concern in any electronic transfer is security. Law firms must
ensure client confidentially by secure data transfer. With today's
software law firms can encrypt anything transmitted from their
office and can require electronic signatures from the people
receiving the file before they import or view it. Once a firm has
the approval from the client to begin e-billing the IS departments
can work out the security, the data file formats, the delivery
method (e-mail, direct transfer, etc.) and the import/export
process, such as printing a hard copy of the bill at the client's
office or converting/importing the data directly to the client's
accounting system. When the client pays the fees by wire transfer
some type of notification system from the firm's bank is
necessary. Most banks do not automatically send a notification
when a wire is received. A call to the firm's bank officer can
usually set up the required notification. Although e-billing
requires some ground work in the beginning, converting from
mailing a bill and waiting for a check, a thirty day process at
best, to electronic billing transfer and wire transfer of fees is
well worth the effort. Not only will billing costs be reduced but
the reduced collection period will enhance cash flow.
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