Author: Christina Lombardo

Is Carrying Disbursements Quietly Capping Your Firm’s Growth?

Posted on | by Christina Lombardo | Leave a Comment on Is Carrying Disbursements Quietly Capping Your Firm’s Growth?

IN SUMMARY

For law firms handling compensation or estate litigation matters, disbursements: barristers fees, medical reports, forensic accountants and court fees can quietly become one of the biggest restrictions to growth.

Many firms in the personal injury, medical negligence and estate litigation space have funded these costs themselves for years. But as caseloads, interest rates and client work increase, so does the financial burden of carrying those disbursements across active matters.

The result? Australian law firms are forced to limit how many new matters they can take on, not because demand has slowed, but because too much capital is tied up waiting for settlement or project completion.

In this article, I’ll explain why more Australian legal firms are rethinking how they manage disbursement funding, what’s driving that shift and how the right external funding structure can give firms more flexibility to grow without the cash flow pressure of self-funding.

This includes:

  • why carrying firm-funded disbursements becomes harder to sustain as firms scale
  • how external funding gives firms more flexibility to take on new matters and support more clients
  • what other Australian legal firms are doing and how they’re structuring it
  • what a flexible disbursement funding arrangement can look like, depending on how your firm operates

For firms feeling that cash flow pressure, the conversation is less about whether to explore external disbursement funding and more about finding a structure that fits the way your firm already works.

You’ll also find out what other firms are doing, how different funding structures can work in practice and what to look for when exploring this for the first time.

Don’t let disbursements limit your firm’s growth

There’s one conversation I’ve been having repeatedly with Australian legal firms lately. It usually starts the same way:

“We’ve always funded our own disbursements.”

And then comes the second part:

“But now it’s becoming too much to carry.”

What’s interesting is that these firms aren’t struggling because work is slow. Most are growing quickly – and increases to interest rates are exacerbating the problem. They’re onboarding more clients, taking on more matters and building momentum.

But internally, cash flow pressure is building because they’re still carrying the financial burden of disbursements themselves.

That’s where I’ve seen a major shift happening across the industry.

The hidden payment pressure Australian law firms are carrying

For firms handling compensation matters, disbursements can quietly become one of the biggest restrictions to growth.

  • Barristers
  • Medical reports
  • Forensic accountants
  • External experts
  • Court fees

All these costs add up long before a matter reaches settlement and everything is reimbursed.

Traditionally, many legal firms in Australia have simply absorbed those costs internally. It’s just been viewed as “part of the job.”

But as firms scale, that model becomes harder to sustain.

I’m speaking to Australian firms who are carrying significant disbursements across active matters. Eventually, even successful firms reach a point where they have to slow down and ask:

“How many more matters can we realistically take on while funding all of this ourselves?”

And that’s the real issue.

When firms are forced to limit new matters because
cash flow is tied up in existing ones, growth slows.

In some cases, firms can’t help as many clients as they want to because they simply can’t carry the additional financial load. So, everything comes to a halt.

Why more firms are using external disbursement funding

Most firms that use funding are successful, growing businesses trying to create more operational flexibility. So, instead of having capital tied up across long-running matters, they’re looking for ways to put that money BACK into the business.

That could mean:

  • Taking on more matters
  • Hiring more staff
  • Improving client experience
  • Investing in growth initiatives
  • Expanding into new practice areas
Most importantly, it removes the pressure of having to limit new matters purely because too much cash flow is tied up elsewhere.

It’s also about helping more clients access your services

Something I think gets overlooked in this conversation is the client impact.

When firms become restricted because they’re self-funding too many disbursements, it can reduce access to legal services for people who genuinely need help.

That’s particularly important in personal injury and medical negligence matters, where clients are often already in vulnerable situations.

External funding gives Australian law firms more flexibility to continue taking on matters without placing additional financial strain on the business.

And from what I’m seeing, that’s becoming increasingly important as demand continues to grow.

The other question firms ask: “what are other firms doing”?

This is probably one of the most common questions I get asked.

Firms want to know:

  • How are other firms structuring this?
  • Are they introducing funding proactively?
  • When are they discussing payment options with clients?
  • What workflows are working well?

There’s no one-size-fits-all answer.

Some legal firms only use funding for larger matters. Others introduce funding once the matter is at the IME stage.

The firms seeing the best results are the ones removing financial friction early.

 

Flexibility matters more than ever

Every firm operates differently, and the right structure should support the way you already work.

For example:

  • Some firms prefer a full self-service model where they manage matters and drawdowns themselves through a portal.
  • Others would rather send invoices directly through and have the funding handled behind the scenes.
  • Some firms prefer variable interest structures.
  • Others want fixed mark-up models for more predictable disbursement management.
There’s no one size fits all setup. The important thing is finding an approach that works operationally for your firm, your team and the type of matters you manage.

The firms adapting early will have an advantage

Australian legal firms are already navigating rising operational costs, staffing pressures and growing client expectations around flexibility.

Cash flow management is becoming a much bigger strategic conversation than it used to be.

The firms rethinking how they manage disbursements and payment structures early are putting themselves in…

  • a stronger position to grow sustainably,
  • take on more matters and
  • continue supporting more clients.
At QuickFee, we work specifically with Australian legal firms, so we understand the pressures and workflows that come with these industries.

The goal isn’t to create more work for firms. It’s to remove friction around payments and cash flow.

Disbursement funding FAQs Australia firms are asking right now

QuickFee works directly with the firm, not the end client. Firms can create a new matter through the disbursement funding portal, manage drawdowns and fund eligible disbursements as needed, without requiring every client to sign lengthy paperwork for each matter.

That’s completely okay. Some law firms prefer the self-service portal, while others would rather send invoices directly through for payment handling. QuickFee can work with different operational preferences, so the process fits the firm rather than forcing the firm into one rigid model.

Yes. Depending on the firm’s needs, QuickFee would be pleased to discuss tailored structures such as variable interest models, fixed mark-up models and write-off allowances. The starting point is understanding how the firm wants disbursement funding to work inside its own business.

The best next step is a no-obligation meeting or Teams call. As I usually say to many law firms in Australia, the first thing we need to do is understand the problem properly, then work together to see what solution makes sense for your firm.

Ready to stop carrying the full financial burden of disbursements?

The firms I’m speaking with aren’t lacking demand. They’re often growing quickly and taking on more matters than ever before.

What’s creating pressure is the amount of cash flow tied up in firm-funded disbursements. That’s why more Australian law firms are starting to rethink how they structure disbursement funding.

It’s not just about financing. It’s about creating more flexibility to:

  • take on more matters
  • support more clients
  • reduce cash flow pressure
  • continue growing sustainably

At QuickFee, the most important thing for us is understanding how your firm operates and what challenges you’re trying to solve. Every firm works differently, and there’s no one-size-fits-all approach.

Sometimes, the best first step is simply a no-obligation conversation to explore whether there’s a smarter way to structure disbursement funding around your firm’s workflow and growth goals.

Talk to the QuickFee team about how disbursement funding can support your firm’s growth and complement the way you already operate.

Contact QuickFee today or request a QuickFee demo.

Subscription Billing is Great, Until Out-of-Scope Work Creeps in.

Posted on | by Christina Lombardo | Leave a Comment on Subscription Billing is Great, Until Out-of-Scope Work Creeps in.

IN SUMMARY

Subscription billing works effectively for Accounting Firms in Australia when financial services are clearly defined and repeatable. But it doesn’t remove the challenge of managing client work that sits outside the regular, agreed-upon scope.

The real pressure point isn’t the subscription billing model itself. It’s what happens when clients naturally ask for additional advisory, tax, audit or business support and firms either absorb the work or struggle to price it in the moment.

In most Australian Accounting practices, this creates a familiar tension. Either:

  • the firm pushes back and risks friction, or
  • the team says yes and the work gets delivered without being properly captured commercially.

Over time, that client billing inconsistency can quietly erode Accounting Firm margins.

This article breaks down where subscription billing starts to strain in real Accounting Firms in Australia and how out-of-scope client work impacts profitability and team workload, including:

  • why subscription models only work for clearly defined, repeatable accounting services
  • where scope creep typically begins inside client relationships
  • the two common (and imperfect) ways Accounting firms currently handle out-of-scope requests
  • a practical way Accounting Firms are managing larger unexpected work without damaging client relationships or cash flow

For Accounting Firms using subscription billing, the key issue isn’t the model; it’s having a clean, commercial way to handle everything that sits outside it.

Subscription billing has become increasingly common across the Australian Accounting profession.

For compliance work, payroll, BAS and recurring services, subscription billing in Accounting Firms works well. It brings consistency to revenue and clarity for clients.

But this subscription model itself isn’t the issue.

The challenge starts when client requests sit outside the original agreement and the default response inside Accounting Firms is simply: “just get it done.”

That’s usually where pressure starts to build, not just on the client side, but inside the firm.

This is something I’ve seen play out in a lot of firms over the years.

That pressure becomes even more relevant when business conditions tighten. According to Xero, during periods of tighter cash flow, small businesses are most likely to seek additional support from an Accountant or Bookkeeper, with 24% saying they would turn to an Accountant and 18% to a Bookkeeper.

In this article, I break down where subscription billing starts to strain Australian Accounting Firms, what out-of-scope work is costing Accounting practices and the practical way Accountants are handling these conversations without damaging margins or client relationships.

Why subscription billing works in the first place

It’s easy to understand why Accounting Firms are moving toward subscription billing.

  • For firms, it creates predictable monthly revenue.
  • For clients, it removes large, irregular invoices and replaces them with a fixed monthly cost they can plan around.

When services are clearly defined, it works well. Everyone knows what is included
and the relationship becomes easier to manage.

That’s why adoption continues to grow, particularly among firms looking to stabilise recurring revenue.

But subscription billing only holds when the service scope stays fixed – and it isn’t always that simple.

Where the Accounting subscription model breaks down

In practice, clients don’t think in service lists. They think in problems.

So, a client on a $2,000 per month package might call up asking for something entirely outside of scope: for example, expansion advice, tax audit support or due diligence on a business decision.

  • The intent is reasonable. The timing is usually urgent.
  • And in most Accounting Firms, the response is also predictable: the team says “YES”.

Not because it’s in scope, but because the client is good, the relationship matters and no one wants to have a difficult conversation.

The work gets done. But the revenue doesn’t reflect all of that extra time and effort.

From the Firm’s perspective, the team is busier but margins don’t improve. And over time, what started as an exception becomes normal behaviour.

That’s when the Accounting Firm subscription billing model starts to lose control, and most firms don’t notice it until it’s already affecting margins.

The uncomfortable choice firms face​

To be clear: this isn’t about policing every small client request. Most firms accept that a little give-and-take is part of a healthy relationship.

A quick call or a minor clarification is one thing. The real challenge is when larger
out-of-scope work gets absorbed without a clean commercial process around it.

When out-of-scope accounting services comes up, Australian Accounting Firms are often forced into one of two positions:

  1. Option A (The Policeman): You hold the line, tell the client it’s not included and risk creating friction or awkwardness in a good relationship.
  2. Option B (The People-Pleaser): You do the work anyway to avoid the hard conversation and your firm absorbs the cost internally.

Neither of these is a win.

One damages the relationship, the other damages the firm’s economics.

Most Accounting Firms end up somewhere in the middle, which is where things become inconsistent and hard to manage.

A third path: where QuickFee changes the conversation​

This isn’t an argument against subscription billing. Subscription models work. They’re effective for the right type of work.

The problem is what happens when the work moves beyond that original agreement.

Accounting firms need a way to deal with larger, unexpected or more complex requests without disrupting the relationship or absorbing the cost.

That matters even more when clients are trying to preserve cash. Recent UNSW & CommBank research found that nearly 80% of Australian SMBs experienced a cash flow impact in the last 12 months, and 27% were maintaining a cash reserve as a strategy.

In that environment, spreading the cost of unexpected work over time can be easier for clients to accept than a larger upfront payment.

That’s where a complementary payment solution becomes important
and that’s where QuickFee fits.

As soon as the work moves outside the agreed range of services, it gives Australian Accounting Firms a practical way to structure that additional work without creating unnecessary friction.

Instead of saying:

“This is outside of your Accounting services retainer; you’ll need to pay the full amount upfront.”

The conversation becomes:

“This work sits outside your current package, but we can structure it into manageable payments so we can get started straight away without the full cost.”

That changes the tone immediately. It removes the friction from the conversation.

  • The client still gets the support they need.
  • The firm still gets paid.
  • The team isn’t left carrying unbilled work.

And in many cases, the arrangement can be prepared in around 40 seconds, making it easy to put in place while the conversation is happening.

Common questions Accounting Firms ask about out-of-scope billing​

A typical QuickFee set up takes around 40 seconds. The agreement can be prepared and sent to the client for approval, so the Accounting firm can move from conversation to action almost immediately while still getting paid.

Yes. If a client suddenly needs support for an ATO audit, expansion planning or another larger piece of advisory work outside the monthly package, QuickFee can be used to structure that unexpected cost into manageable monthly payments.

Yes. If a client is buying a competitor, opening another location or working through a major business decision, those larger project-based fees can be handled through QuickFee rather than creating a difficult upfront payment discussion.

QuickFee is usually better suited to larger out-of-scope matters, not the small five-minute client calls that naturally happen during a normal client relationship. The challenge is often not sending the invoice; it’s asking a client to pay a larger, unexpected amount upfront and spreading that cost over time can make that conversation much easier.

Absolutely. You can request a QuickFee demo and watch it in action to see how it can fit your Accounting Firm’s client billing needs.

Ready to make your Accounting Firm’s client billing work better?

If your firm is already using subscription billing, the real question is simple: what happens when a client needs more than the agreed scope? If that conversation is still difficult, QuickFee can help you manage it more cleanly.

Request a QuickFee demo or speak with my QuickFee team.

The Accounting firms that manage this balance well are the ones that can:

  • protect their margins
  • support their clients and
  • avoid turning every larger request into an uncomfortable billing conversation.

That’s where QuickFee comes in. It creates a simple win-win structure:

Less friction. A cleaner billing conversation. A better way to avoid unbilled work building up inside the firm.

Talk to the QuickFee team about how it can complement your current billing model in your Accounting Firm.

Contact QuickFee today or request a QuickFee demo.