How do I Invoice a Service?
To Invoice a Service, simply:
- Navigate to the service you would like to bill.
- Click on the “Actions” drop down
- Select “Bill service” to follow the prompts and create a DRAFT invoice
- A Service is the legal work that a lawyer needs to perform. Services on the platform are used as a project management vehicle
- Services can be labeled as Quote, Active, Complete, or Closed (cancelled)
- Lawyers can now manually change the status of a Service at any time
- An Invoice is the payment vehicle for Services that a lawyer performs.
- Invoices can be labeled as:
- Draft (invoice is not finalized, not visible to client, can be edited)
- Open (invoice has been finalized, visible to client, cannot be edited)
- Void (invoice has been cancelled, visible to client, cannot be edited, cannot be paid)
- Paid (invoice has been successfully paid by the client)
- Pending (a debit payment is pending approval from the bank)
- Retrying (a payment attempt has failed and will automatically retry in 24 hours)
- Failed (a payment has retried 10 times and is now marked as Failed. A new invoice must be issued to collect payment as this state essentially voids the invoice)
- Clients and Lawyers will see different invoices. The client invoice will not show the lawyer breakdown.
There are a few bonus updates that we’ve slipped in with the Invoices build (save your own fixed-fee services and enter negative line items for discounts). Read on to learn more!
Invoicing
- When a lawyer selects “Bill Service” from the service details page, they will be prompted to create an invoice — this step is mandatory.
- When creating an invoice, a lawyer must select:
- An entity and representative
- A matter
- A service
- Adding line items from the service is optional
- Indicate if the creation of the invoice Completes the service (will be marked by default, but the label can be updated later manually)
- These fields will be auto-populated when creating Invoices from within a Service, but editable
- Invoices will always be created in a Draft state. Once the invoice is created, lawyers will have the ability to immediately finalize the invoice and bill the client’s payment method on file, following the usual payment flow.
- Once an invoice is created, a memo / note can be added.
- Lawyers can still edit an invoice while in a Draft state, modifying line items as needed. This is useful for example if you are creating multiple, evenly split payments for a client that do not align directly with the line items in the service.
- Lawyers will also be able to send an invoice to their clients (and additional email addresses) which will prompt clients to pay the invoice with their preferred payment method (now including debit).
- Lawyers can also utilize Auto-billing by selecting a date for the client’s payment method on file to be invoiced and billed. This means you can set up multiple invoices on a payment schedule then set it and forget it.
- Lawyers will also be able to duplicate invoices, download PDF copies of invoices in any state, and void invoices. These options are available from the “…” menu.
- Invoice events will be shown in chronological order at the top of the invoice details page, showing creation and finalization dates, payment attempts with details, and success messages.
- If a payment fails, the Events log will indicate why, and will show you the date of an automatic retry from our system. The Operations team will continue to monitor and intervene on failed payments, but we have an automatic backstop now that retries payment after 24 hours.
- Lawyers can track all of their invoices from the “Billing” page accessed from the app’s main navigation. This is also the new home of Tax Report downloads and is replacing the current Transaction History page (no longer found in account settings).
- Invoices will be numbered globally to the entity, showing the first 10 characters of the entity’s name, followed by 3 digits to indicate the count of the invoice. For example GOODLAWYER-001
- Note that an entity might have invoices with multiple lawyers, so a lawyer will not always have every invoice. For example, one lawyer might have invoices GOODLAWYER-001 and GOODLAWYER-003, while another lawyer works with them and creates invoice GOODLAWYER-002.
- Lawyers and clients will be notified via email when an invoice changes status (open, paid, payment failed, voided, etc.)
When do I Bill a Service?
When billing a Client for substantive legal services ensure you: 1) let the Client know before billing them, and 2) bill the Service BEFORE sending the deliverable. These are however our suggestions — if you and your client have arranged a payment schedule or cadence that works better for you, you have the flexibility and control to do so.
Let the Client know before billing them.
Legal services are often expensive, and Clients may need to clear up room on their payment before billing. So, it is best practice to give the Client at least 24 hours' notice before billing.
Bill the Service BEFORE sending the deliverable.
Ensure payment has been received before sending the deliverable to the Client. Send the deliverable as soon as you receive confirmation the payment has been successfully processed.
Funds typically take 5-7 business days to be deposited in your account and may be lumped together with other recently billed services. Do not wait for the funds to reach your account before sending the deliverable to the Client (only ensure the transaction has been successfully processed — you will see an error message if the transaction fails)
What Should I Tell the Client before Billing the Service?
If helpful, you can use the following template message to let the Client know the service is complete, and the next steps regarding billing and minor revisions.
“Hi [INSERT NAME], I’m in the process of finalizing the [INSERT SERVICE NAME] as discussed.
I expect to have [a/the] completed [INSERT DELIVERABLE NAME(S)] ready to send to you at approximately [INSERT DATE/TIME]. For now, I’ll also bill and close the service just before sending you the deliverable[s]. Once the service is closed, you still have 30 days for minor revisions, so please don’t hesitate to reach out to me with comments or changes as needed. If there are revisions, you’d like to make that aren’t minor revisions, let me know and I would be happy to discuss the scope and pricing for these extra changes.
If you need any assistance with your billing information or have questions about the billing process, please reach out anytime to the Legal Concierge™ Team.
Thank you and I’ll be in touch soon.”
What if a Charge gets Declined?
If a credit card has been declined, inform the Client, and notify a member of the Legal Concierge™ Team who can help resolve the declined payment. Do not send the Client the deliverable until payment is resolved with the Client.
If a charge gets declined, the Goodlawyer payment system will automatically retry the payment every 3 days for 10 attempts. We highly recommend immediately notifying your client of the failed payment attempt to give them some time to resolve the issue (making room on their credit card, contacting their bank, etc.)
The Goodlawyer operations team monitors payments closely and will also intervene on failed payments and help you get paid.
Can Clients pay for a Service in instalments (Payment Plans)?
Yes, you simply need to create multiple invoices for the Service. You can do this by splitting up invoices according to different line items on the Service, or by creating custom line items in the invoice for 1/3 of the payment for example.
Pro-tip: Utilizing auto-billing is a great way to easily set up multiple invoices that will auto-bill on specific dates.
How is Tax Calculated?
Tax is calculated based on the Client’s province. For example, if a lawyer is based in Ontario and their Client is based out of Alberta, Alberta’s tax rules apply.
In order to collect tax, Lawyers must add their tax account numbers to their accounts. When funds are transferred to Lawyers, transactions will include the Lawyer’s Legal Fee + associated tax.
Note that Lawyers are required to have a GST/HST account connected before receiving Clients. Also note that PST applies in BC, SK, MB, and QC, each province with its own thresholds for when PST is required.
To enter your tax accounts, simply:
- Select “Settings” from the account dropdown on the top navigation bar.
- Navigate to the “Billing info” tab.
- Add your tax account numbers and click Save Tax Numbers.
Billing Disbursements?
Government filing fees and disbursements are billed by creating and billing a Custom service and marking the “Disbursements” checkbox. This will make the line item exempt from taxes, and Goodlawyer Service Fees (3% Processing Fee still applies to Clients on disbursements).