Success fees: how to track them from settlement to payment

For many firms, success fees are the largest source of revenue — and also the most disorganized. Between the judgment, the settlement, the release of funds and the transfer to the client, months or years go by. Along the way, money gets left behind.

Record the success fee at the start, not at the end

The percentage and the calculation base should be in the fee agreement and recorded in the case from day one. That way, when the money arrives, the calculation is already set.

Track the events that generate revenue

• Court-approved settlements, with installments and dates;
• Court deposits and their release;
• Payments owed by the government (small-value requisitions and court-ordered debts);
• Court-awarded fees, which belong to the lawyer and are added to contractual fees.

Monitor settlement installments

Installment settlements require month-by-month tracking: was the installment paid? How much belongs to the client and how much to the firm? Was there a delay that justifies enforcing the penalty?

Transfer funds transparently

A clear accounting — amount received, fees withheld, expenses reimbursed and amount transferred — prevents mistrust and complaints.

Project the future

By adding up settlements and expected success fees, the firm gets a much more realistic revenue forecast for the coming months.

How IntegraLegal solves this

In IntegraLegal, the case's Financial Center brings together revenue, fees, settlements, transfers and commissions in one place, with installments and due dates. A settlement recorded in the case generates installment tracking, and the forecast shows what's expected to come in. No more success fees forgotten in a folder.

See how much your firm has to receive: try it free for 7 days.

Read also

• Fee agreements: clauses that prevent conflicts with clients
• How to collect fees without awkwardness (and without forgetting)
• Cash flow in a law firm: the no-nonsense guide

Notice: this content is for information only. It does not replace a lawyer's analysis of the specific case. Always check the legislation, case law and rules in force on the date of your consultation.