Play 6 Complete Implementation Guide

Most firms lose 15-20% of billable revenue to write-offs and slow collections. The root cause is reactive monitoring. You need a system that flags problems before they become write-offs.

Set Up Invoice Tracking

Step 1: Centralize invoice data in your practice management system.

Use Clio, PracticePanther, or QuickBooks Online. Do not use spreadsheets. Configure custom fields for:

• Invoice number
• Client matter ID
• Invoice date and due date (net 15, net 30, or custom)
• Amount billed and amount paid
• Status (draft, sent, viewed, paid, overdue)
• Last follow-up date and next action date

Step 2: Build a real-time aging dashboard.

Create four aging buckets: Current (0-30 days), 31-60 days, 61-90 days, 90+ days. Display total dollars and invoice count in each bucket. Update this view daily at 9 AM.

Step 3: Automate status alerts.

Set up three automatic notifications:

• 7 days before due date: reminder to client
• Day of due date: payment confirmation request
• 3 days past due: overdue notice to collections team

Use Zapier or Make.com to connect your billing system to Slack or email. Example Zap: "When invoice status changes to overdue in Clio, post to #collections channel with client name, invoice number, and amount."

Monitor Invoice Status

Daily review protocol (15 minutes, every morning):

Open your aging dashboard. Sort by days outstanding, descending. Flag any invoice over 45 days that lacks a documented follow-up in the past 7 days. Assign that invoice to a team member for same-day outreach.

Weekly aging report (Fridays at 3 PM):

Generate a report showing:

• Total AR by aging bucket
• Top 10 overdue invoices by dollar amount
• Clients with 3+ overdue invoices
• Month-over-month change in 60+ day bucket

Distribute this report to partners and practice managers. Discuss action items in a 15-minute standing meeting.

Exception alerts to configure:

• Invoice over $25,000 unpaid for 30+ days
• Client with payment history score below 70 (based on past late payments)
• Invoice disputed or marked "under review" by client
• Payment plan missed by client

Respond to Issues Proactively

Prioritization matrix:

Rank overdue invoices by (Amount × Days Overdue). Work the top 20% first. For example, a $50,000 invoice at 60 days overdue (score: 3,000,000) takes priority over a $5,000 invoice at 90 days (score: 450,000).

Pre-due-date outreach:

Five days before due date, send a brief email: "Invoice [NUMBER] for $[AMOUNT] is due on [DATE]. Reply to confirm receipt or let us know if you need the invoice resent." This catches 40% of "I never got it" excuses before they happen.

Interaction logging:

Use your CRM

or practice management system to log every touchpoint. Required fields: Date, method (email/call/meeting), person contacted, summary of conversation, next action, next action date. Never rely on memory or informal notes.

A structured sequence converts 60-70% of overdue invoices within 30 days. Without one, you convert 30-40% and take twice as long.

Establish Follow-up Cadence

Standard sequence timeline:

• Day -7: Friendly reminder (email)
• Day 0: Due date confirmation (email)
• Day +3: First overdue notice (email)
• Day +10: Personal follow-up (phone call)
• Day +20: Stern notice with late fee (email)
• Day +30: Final notice before escalation (email + call)
• Day +45: Escalation to partner or collections

Email templates (copy-paste ready):

Day -7 template:

Subject: Upcoming Invoice Due [Invoice Number]

Hi [First Name],

Invoice [NUMBER] for $[AMOUNT] is due on [DATE]. 

If you've already submitted payment, thank you. If not, please confirm receipt of this invoice or let me know if you need any documentation resent.

[Your Name]

Day +3 template:

Subject: Overdue Invoice [Invoice Number]

Hi [First Name],

Invoice [NUMBER] for $[AMOUNT] was due on [DATE] and is now 3 days overdue.

Please submit payment today or contact me if there's an issue preventing payment.

[Your Name]

Day +20 template:

Subject: Overdue Invoice [Invoice Number] - Late Fee Applied

[First Name],

Invoice [NUMBER] for $[AMOUNT] is now 20 days overdue. Per our engagement terms, a late fee of [X%] has been applied.

New balance due: $[NEW AMOUNT]

Payment is required within 5 business days. Contact me immediately if you need to discuss a payment plan.

[Your Name]

Responsibility assignment:

• Days -7 to +10: Billing coordinator
• Day +20: Billing manager
• Day +30: Practice manager or partner
• Day +45: Collections agency or legal

Escalate Overdue Invoices

Automated reminder setup:

Use your billing system's built-in automation or connect it to an email service. In Clio, go to Settings > Billing > Payment Reminders. Enable automatic reminders at -7, 0, +3, +10, +20 days. Customize templates to match your firm's tone.

Personal outreach script (Day +10 call):

"Hi [Name], this is [Your Name] from [Firm]. I'm calling about invoice [NUMBER] for $[AMOUNT], which is now 10 days past due. Can you confirm when we can expect payment?"

If they say "I'll check on it": "Great. I'll follow up with you on [specific date, 3 days out]. What's the best number to reach you?"

If they say "We're having cash flow issues": "I understand. Would a payment plan work? We can split this into [2-3] installments over [30-60] days."

Management escalation criteria:

Escalate to a partner when:

• Invoice exceeds $15,000 and is 30+ days overdue
• Client has 3+ overdue invoices totaling $10,000+
• Client disputes the invoice or requests a discount
• Client stops responding to outreach attempts

Late fee policy:

Charge 1.5% per month (18% APR) on overdue balances. State this clearly in your engagement letter. Apply the fee automatically at 20 days overdue. This recovers your cost of capital and incentivizes prompt payment.

Maintain Consistent Follow-up

Process documentation:

Create a one-page flowchart showing each step in the sequence, who owns it, and what triggers the next step. Post this in your billing team's workspace and in your internal wiki.

Team training checklist:

• Review the follow-up sequence and timeline
• Practice the Day +10 phone script with role-play
• Walk through how to log interactions in the CRM

  CRM

  Click to read the full definition in our AI & Automation Glossary.
• Explain escalation criteria and when to involve a partner
• Demonstrate how to set up payment plans in the billing system

Monthly performance review:

Track these metrics:

• Percentage of invoices paid within terms (target: 75%+)
• Average days to payment (target: under 35 days)
• Percentage of invoices requiring escalation (target: under 10%)
• Total dollars in 60+ day bucket (target: under 5% of total AR)

Adjust your sequence if metrics decline. For example, if Day +10 calls aren't working, move them to Day +7.

Manual payment reconciliation wastes 5-10 hours per week and creates errors. Automate it.

Integrate Payment Gateways

Step 1: Choose a payment processor.

Use LawPay (for law firms), CPACharge (for accounting firms), or Stripe (for consultancies). These integrate directly with practice management systems and trust accounting rules.

Step 2: Configure automatic reconciliation.

In LawPay, go to Settings > Integrations > [Your Practice Management System]. Enable "Auto-sync payments." Map payment types (credit card, ACH, check) to the correct accounts in your chart of accounts.

Test the integration: Process a $1 test payment and verify it appears in your billing system within 5 minutes with the correct invoice linked.

Step 3: Set up payment confirmation notifications.

Configure your billing system to send an automatic receipt when payment is detected. Example receipt:

Subject: Payment Received - Invoice [Number]

Hi [First Name],

We've received your payment of $[AMOUNT] for invoice [NUMBER].

Remaining balance: $[BALANCE] (if applicable)

Thank you for your business.

[Your Name]

Also send an internal notification to your billing team and the responsible partner.

Manage Partial Payments

Partial payment policy:

Accept partial payments only if the client commits to a written payment plan. Apply partial payments to the oldest invoice first unless the client specifies otherwise in writing.

System configuration:

In QuickBooks or Clio, enable "Allow partial payments" in invoice settings. When a partial payment is received, the system should automatically update the invoice status to "Partially Paid" and calculate the remaining balance.

Client communication for partial payments:

Send this email immediately when a partial payment is detected:

Subject: Partial Payment Received - Invoice [Number]

Hi [First Name],

We've received a partial payment of $[AMOUNT] for invoice [NUMBER].

Remaining balance: $[BALANCE]
Due date for remaining balance: [DATE]

Please confirm your plan to pay the remaining balance or contact me to set up a payment plan.

[Your Name]

Resolve Payment Discrepancies

Investigation protocol:

When received payment doesn't match invoice amount:

1. Check if client applied payment to a different invoice (common error).
2. Review invoice for calculation errors or unapproved discounts.
3. Contact client within 24 hours: "We received $[AMOUNT] for invoice [NUMBER], but the invoice total is $[AMOUNT]. Can you clarify the payment intent?"

Documentation requirements:

Log the discrepancy in your CRM

with:

• Date discrepancy discovered
• Invoice number and expected amount
• Actual payment received
• Client's explanation
• Resolution (adjustment, additional payment, write-off)
• Approval from partner (if write-off exceeds $500)

Preventive measures:

Run a monthly report of all invoices with adjustments or write-offs. If you see patterns (same client, same type of charge, same billing attorney), address the root cause. For example, if clients consistently dispute research charges, improve your invoice descriptions or get advance approval for research expenses.

Escalation is not failure. It's a necessary step for 5-10% of invoices. The key is knowing when to escalate and having a clear process.

Establish Escalation Criteria

Automatic escalation triggers:

Escalate to collections when:

• Invoice is 60+ days overdue and client has not responded to 3+ contact attempts
• Invoice is 90+ days overdue regardless of contact attempts
• Client explicitly refuses to pay or disputes the entire invoice
• Client's business closes or files for bankruptcy

Escalation responsibility matrix:

• 60-89 days overdue: Practice manager reviews and approves escalation
• 90+ days overdue: Partner reviews and approves escalation
• Disputed invoices: Partner handles directly, no delegation

Process documentation:

Create an "Escalation Checklist" that includes:

• Confirm all follow-up steps were completed and documented
• Verify invoice accuracy and supporting documentation
• Calculate total amount due including late fees
• Prepare a summary of all client communications
• Get partner approval to escalate
• Send final demand letter (template below)

Final demand letter template:

[Date]

[Client Name]
[Address]

Re: Final Demand for Payment - Invoice [Number]

Dear [Name],

Invoice [NUMBER] for $[AMOUNT] is now [X] days overdue. Despite multiple attempts to contact you, this invoice remains unpaid.

This is your final opportunity to pay this invoice before we escalate to collections. Payment must be received by [DATE, 10 days from letter date].

If payment is not received by this date, we will refer this matter to a collections agency and may pursue legal action. This will negatively impact your credit and may result in additional fees.

Contact me immediately at [PHONE] or [EMAIL] to arrange payment.

Sincerely,

[Partner Name]
[Title]

Engage Collections Agencies

Agency selection criteria:

Evaluate agencies on:

• Industry specialization (legal, accounting, consulting)
• Contingency rate (typically 25-40% of collected amount)
• Success rate on accounts similar to yours
• Licensing and bonding in your state
• Client reviews and Better Business Bureau rating

Interview 3-4 agencies. Ask: "What's your average time to first payment?" and "What percentage of accounts do you successfully collect on?"

Partnership terms to negotiate:

• Contingency rate: 30% for accounts under 90 days, 40% for older accounts
• No upfront fees
• Monthly reporting on collection activity
• Right to recall accounts if you resolve directly with client
• Agreement that agency will not harass or threaten clients

Performance monitoring:

Request a monthly report showing:

• Accounts placed with agency
• Accounts with payment activity
• Total dollars collected
• Average days to first payment
• Accounts closed as uncollectible

If an agency collects less than 20% of placed accounts after 6 months, switch agencies.

Pursue Legal Action (as a Last Resort)

When to consider legal action:

• Invoice exceeds $25,000 and client has assets to collect against
• Client has a pattern of non-payment across multiple invoices
• Client made fraudulent representations or breached contract terms
• Collections agency was unsuccessful after 6+ months

Cost-benefit analysis:

Legal action costs $3,000-$10,000+ in attorney fees. Only pursue if:

• Invoice amount exceeds $50,000, or
• You have a strong case and client has verifiable assets, or
• You need to set a precedent to deter other non-paying clients

Attorney consultation:

Hire a collections attorney (not your firm's general counsel). Provide:

• Original engagement letter and invoice
• All client communications
• Proof of services rendered
• Documentation of collection attempts
• Client's business registration and asset information

Ask: "What's the likelihood of recovery?" and "What are total estimated costs including filing fees and your fees?"

Documentation requirements:

Maintain a legal action file with:

• Demand letter and proof of delivery
• Attorney engagement letter
• Court filings and case number
• All court correspondence
• Settlement offers and final judgment
• Collection efforts post-judgment

This system converts 70-80% of overdue invoices within 60 days and reduces write-offs to under 3% of billings. Implement it in phases over 30 days, starting with invoice monitoring and the tiered follow-up sequence.