Fixing exchange rates allows firms to more accurately predict costs and gives better control over incoming and outgoing payments, explains Natalie Adams

Recognising the importance of client retention, law firms have begun to embrace more client-centric strategies since the recession. Technology has been effective in helping to underpin best practice, particularly when it comes to international payments. Recognising the unique external challenges that today's law firm's face such as increased currency volatility, Travelex Global Business Payments has built the first law firm-specific online payment system.

GlobalPay Legal by Travelex Global Business Payments incorporates a state-of-the-art online payment system that enables law firms to make all types of payments and also to book future payments. This allows firms to fix the exchange rate and schedule payments under £10,000 for release at any time within 120 days. This means that firms will know the precise sterling cost of their related or client billable items and can invoice their client the exact sterling amount, allowing greater control over their incoming and outgoing payments and also eliminating the need to re-invoice clients or post losses due to currency movements.

Even with a three-month billing cycle or a slow-paying client, law firms can be assured that they have secured a fixed exchange rate for 120 days. If their client delays a payment or the firm would like to settle an invoice earlier, the release date within the four-month period can be changed. Firms can gain all the traditional benefits of managing their risk and securing their profitability without tying up their cash-cow.

This functionality works particularly well for firms that have a higher volume of international payments – for example, firms in the intellectual property sector, or those that don't buy forward cover. It also allows the law firm to understand what their profitability is per client engagement. The same can be done in reverse to protect incoming payments.

To make a payment, law firms simply choose a beneficiary, select the currency and the date the funds need to be released. They then choose if the payment is to be in the supplier's domestic currency or in US dollars, put in a reference, select the release date and choose how the payment is funded – for example a spot trade, or from previously purchased funds.

They can also choose how the payment is to be made, for example via electronic funds transfer or automated clearing house payment. A reference can be written next to the payment at this point to highlight its purpose and there are extended fields allowing firms to capture multiple invoice numbers per payment. The payee can then review the entire payment before it is submitted. Once this has been done, they will either 'commit' the order or 'save as pending' (as per the law firm's internal approval model.)

With no need for manual reconciliation or adjustment, the funds stay with the law firm until it is ready to release payment. The pound sterling and offshore payments will match, ensuring that there are no cashflow implications or shortfalls.

GlobalPay Legal also features a vendor management system called Payee Manager that stores a law firm's beneficiary details and banking information securely. Payee Manager allows payment beneficiaries to update their details whenever they need to do so via a secure login and approval process. When a beneficiary logs in to amend their bank account details, an email is sent asking the law firm for approval before the change is accepted. Once approved, GlobalPay Legal will then update the beneficiary's payment information. The beneficiary can also login to check on the payment status without having to chase for the payment. This removes responsibility from the law firm to chase the beneficiary and confirm that payment details are accurate.

Firms can also integrate their current accounting and practice management systems with GlobalPay Legal, so as to eliminate repeat data entry and make the payments process more efficient and economical.

In today's volatile currency market, there seems no better time for firms to review 'software as a service' payment technology and look to solutions that require no capital expenditure, can help protect bottom line profitability and offer a better service to clients.

Natalie Adams is head of UK legal solutions at Travelex.