It takes the average UK law firm 146 days to get paid for completed work. Add in the 24-day delay before billing even starts, and that’s nearly five months of revenue in lockup.

Yet despite this, many in the legal industry still continue to use outdated administrative tasks that slow down the billing process.

This article explores the true cost of manual payment processes and explains how firms can get paid faster, drawing on insights from our recent report ‘2025 Legal payment trends: how law firms are adapting to a digital-first future’. 

The hidden cost of manual billing

Manual billing processes don’t just slow you down – they cost you money. And in most firms, the losses are larger than you think.

Consider the time spent on admin. Manually creating and sending invoices. Chasing payments by phone or email, one client at a time. Reconciling bank transfers against matter numbers in spreadsheets. 

If a legal assistant earning £35,000 spends 10 hours a week on billing admin, that’s about £9,000 a year in wasted salary costs – just for one person. Multiply that by three assistants, and that figure rises to £27,000 annually.

However, billing can also impact fee-earners. 

In smaller firms without assistants, fee-earners might have to handle billing admin themselves, taking precious time and energy away from client matters. 

How slow billing delays law firm cash flow

Manual billing processes slow down your cash flow, extending lockup and inflating debtor days. And when payments are delayed, it affects everything from staffing to strategy.

Often, this means holding back on growth plans, delaying hires, or dipping into reserves to manage shortfalls.

It also puts pressure on legal professionals. When billing lags behind the work, there's a higher risk of write-downs and payment disputes. That affects realisation rates and morale. No one wants to chase a client over an invoice they weren’t expecting.

Digital payments: the client-centric solution 

Clients don’t want to jump through hoops to pay a bill. They’re used to fast, flexible online payments – and they expect the same from their law firm.

66% of legal clients prefer to pay online, with credit cards being their preferred option. Meanwhile, only 20% want to pay by cheque or cash. Plus, with Legl data showing that 52% of payments are now made outside office hours, firms that limit payment options are actively making it harder for clients to pay. 

If you're serious about client satisfaction, then you need to make it easy for them to pay your firm (e.g. by accepting credit card payments).

This isn’t just about convenience. It’s about credibility. A smooth, secure billing process reflects the quality of your legal service. It shows your firm is modern and easy to work with. Clients are more likely to pay promptly, return for future matters, or recommend your firm to others.

In today’s market, how you handle billing is part of your client experience – and your reputation.

The ROI of digital payment solutions for law firms

For years, firms have been using legal practice management software to be more efficient. Now, it’s time to use technology to optimise the legal billing process.

Digital solutions help law firms get paid faster. In turn, this will have a huge impact on your law firm’s financial health. 

Here are just a few examples of the benefits firms have received since they started using Legl Pay:

• Debenhams Ottaway gets paid on average 21.6 hours after sending over a payment request link. 
• While the firm has also reduced its debtor days from 34 to 26.
• On average, Tollers LLP now gets paid in under 24 hours (down from 3-4 days).

However, the financial impact is just one benefit that firms gain.  

These systems also bring much-needed visibility. Real-time dashboards let you track payments as they happen, automatically reconcile them, and spot issues before they escalate. 

What’s more, digital payment systems also support compliance. They generate clear audit trails and automatically route funds to the correct client or office account. 

For small law firms especially, digital payments level the playing field. They reduce admin, free up capacity, and give every client a smooth, professional experience. 

Final thoughts

Manual billing processes might feel familiar, but they come at a high cost. Delayed cash flow. Missed billable hours. Unnecessary admin.

The good news is that better options exist. Digital tools can streamline your law firm billing process, make it easier for clients to pay, and give your team more time to focus on high-value work.

If you're still relying on manual systems, now’s the time to rethink how you manage payments.

📘 Read the full report to learn the latest payments best practices: ‘2025 Legal payment trends: how law firms are adapting to a digital-first future’. 

💡 Ready to modernise your billing?  Fill out the form below to get in touch with our team, we're here to help!