Billing Workflow without Retainers

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00:01: So in this video, I'm going to walk you through the billing workflow in CARET legal

00:05: specifically focusing on firms that do not use retainers or trust accounts.

00:11:

00:12: We'll go step-by-step from creating billable activity to generating invoices,

00:17: all the way through sending invoices out to clients and receiving payments.

00:22: Let's go ahead and get started.

00:24: At a high level, the billing workflow in Carrot Legal includes creating billable

00:29: activities,

00:30: generating and previewing pre-bills,

00:33: finalizing invoices,

00:35: sending invoices to clients, and receiving payments.

00:38: In this workflow, payments are applied directly to invoices after they're sent,

00:43: since there are no retainers involved.

00:47: Let's start with creating billable activity, specifically time entries, since that's

00:52: the foundation of most billing.

00:54: There are several ways to track your time in Carrot Legal.

00:57: You can do it automatically by capturing time from emails, phone calls, or calendar

01:01: events.

01:02: You can also track time using the timer, the mobile app, tasks, or the matter

01:08: activity log.

01:10: Or you can enter time manually using the Quick Add menu and selecting New Time

01:16: Entry.

01:17: From the Time section,

01:19: heading over to Time Entries tab and clicking the plus sign to create a new time

01:23: entry.

01:25: Or within the matter under the Time and Expenses tab.

01:31: The key here is consistency,

01:33: making sure all your billable time is captured accurately before billing.

01:38: Next, let's talk about flat fees and expenses.

01:41: For flat fees, head to the Time section, then the Flat Fees tab.

01:46: Click the plus sign to add your entry.

01:49: You can also add flat fees directly inside the matter.

01:54: For expenses, Carriot Legal supports soft costs, hard costs like checks or credit

02:00: cards,

02:01: vendor bills, and even interest on overdue invoices.

02:07: You can enter expenses from the Expenses tab in the Time section, from the Matter

02:13: page under Time and Expenses tab,

02:17: the Quick Add menu where you can add a new expense as a soft cost or new check as a

02:21: hard cost.

02:23: Vendor bills can only be created from the Accounting page under Vendors and Bills

02:28: tab by

02:29: clicking the plus sign on the right and creating a new vendor bill.

02:33: The goal is to make sure everything that is billable, not just time, is included.

02:40: Once your activities are in place, it's time to generate a pre-bill.

02:45: To do this, go to the Accounting, then open Invoices and Payments tab, and click the

02:51: plus sign on the right side of the green bar.

02:55: Here you can choose to invoice unbilled activities or create an invoice from

03:00: scratch.

03:03: When creating a

03:06: new invoice from scratch, you will manually add items like flat fees, time and

03:10: expenses.

03:12: In this video, we are going to build existing unbilled activities.

03:19: In this Generate Invoice screen,

03:22: first set your filters.

03:25: Set the date range.

03:27: Select the matter if you are billing an individual matter and any other additional

03:32: filters as needed.

03:34: Then click Generate Invoice.

03:37: If you would like to see the details of what is captured,

03:41: click on Manually Select Items and then turn on the toggle Show Details.

03:46: By

03:48: clicking the arrow next to the billable line item, you can now see the details of

03:54: captured activities,

03:56: such as time entries, cost, or the flat fees or interest.

04:04: Select the matters or

04:09: switch back to select all items to generate.

04:13: Then click Generate Invoice.

04:16: Confirm the invoice date and due date,

04:19: then click Generate.

04:21: Your drafts will be created and you'll see the confirmation along with the invoice

04:25: numbers.

04:26: By design, the system will leave you on this page so you can continue generating

04:31: additional invoices if needed.

04:35: Once done, click Back to all invoices to be taken back to the Accounting page.

04:42: Incarried legal prebills show up as draft invoices.

04:47: You can find them again in the Accounting section under Invoices and Payments or

04:52: directly inside the matter.

04:56: On the matter page, click on the Invoices tab where you will see the list of

05:01: invoices where they are approved or in draft pertaining to this particular matter.

05:09: If we click Draft Filter, we can narrow down our list to draft invoices only.

05:16: From here, you can print drafts by selecting them all and clicking on the

05:22: Multi-Select Options button and choosing Print Selected Invoices.

05:29: Under Multi-Select Options, you will also see other options, such as Approve

05:34: Invoices in Bulk or Delete them.

05:37: When deleting a bill, all activity captured in the draft will return back to

05:43: unbilled status.

05:44: To

05:46: make changes,

05:47: use the three-dot menu on the right side and select edit or

05:53: click on the invoice number.

05:55: From

05:58: the draft preview screen,

06:00: we can edit each individual line item by clicking on the Edit Pencil button or

06:07: delete by clicking the trash can icon if needed.

06:11: We can also add new line items such

06:17: as time, flat fee,

06:20: or expenses.

06:23: In addition, we can change the invoice date or the due date, add a discount, and add

06:29: notes.

06:33: Reviewing drafts is an important step.

06:36: Make sure everything is accurate before finalizing.

06:40: Depending on your firm's setup, invoices may require approval.

06:45: If approval is enabled,

06:47: you can submit for approval so that other user can review and approve individually

06:53: or in bulk.

06:55: Alternatively, you can approve your invoices directly.

07:00: Once approved, the status change from draft to approved or

07:06: not paid, and we can go back to the invoices list.

07:14: The approved invoice is now ready to be sent to clients.

07:18: Let's approve the remaining drafts in bulk.

07:21: Now that the invoices are finalized, it's time to send them to your clients.

07:33: For sending, we have a few options.

07:36: First, using Bulk Billing Center.

07:39: It will allow us to send multiple invoices at once.

07:44: Set the date range.

07:48: In the next screen, apply filters like Attorney, Matter or Client.

07:57: In the next step, we can review the invoices and exclude any invoices from emailing

08:03: if needed.

08:06: In the final step, we can customize our message and click blast and close.

08:12: If Carrot is enabled,

08:14: invoices will also include a Pay Now link.

08:18: This option is great for efficiency.

08:22: The second option is emailing individual invoices.

08:26: Click the three-dot menu next to the invoice and select Send Payment Link.

08:35: Each email includes a PDF invoice,

08:39: a payment link if CarePay is enabled.

08:43: The message also can be customized.

08:47: Select the recipient and

08:50: click send.

08:55: And the third option,

08:57: you can securely share your invoices via client portal.

09:05: Click the three-dot menu on the right side and select Share via Portal.

09:13: Select the contact.

09:17: Make sure you have an email and a phone number for the client.

09:20: The client will receive an email notification and the invoice can be paid directly

09:26: from the portal if

09:28: the carrot pay is enabled.

09:33: All of these options make it easy to communicate clearly with your clients.

09:38: Finally, let's talk about receiving payments.

09:42: Since there are no retainers in this workflow, all payments are applied directly to

09:47: invoices.

09:49: You can apply a payment to a single invoice from the three-dot menu and selecting

09:55: Record Payment,

09:57: or click the plus sign on the right side of the green bar

10:01: and select apply direct payment to pay multiple invoices

10:11: payment methods can include check cash credit card or you can accept payment online

10:17: through caret pay if that is enabled once

10:21: applied invoice statuses will be updated to paid or partially paid if the partial

10:28: payment was made.

10:30: This flexibility makes it easy for both you, your clients, to pay you and your firm

10:34: to track payments accurately.

10:39: This flexibility makes it easy for both your clients to pay and your firm to track

10:45: payments accurately.

10:46: And that's the full workflow.

10:47: We covered creating billable activity, generating and reviewing invoices.

10:54: Sending invoices and receiving payments directly.

11:04: CARET legal provides a comprehensive system to help you manage building efficiently.

11:09: Thanks so much for watching and feel free to revisit this tutorial.

11:13: Anytime you need a refresher.

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