Software alone is not the answer. Many firms have believed, erroneously, that by installing collection software, their receivable problems are solved. They lose sight of the fact that the software is just a tool, though potentially a powerful one. More importantly, however, is the firm's strategy for using the software, and the people who are using it. Software is an aid to -- not a substitute for -- the personal contact and the strategy to get bills in line for payment -- especially older, difficult accounts.
Software works best when it is used correctly. A surprising number of law firms install software, and pay for upgrades and training, but they do not get around to using it to improve collection results. Many are unsure how to use collection software as a strategic business tool to help increase revenue, cash flow and overall profitability.
Law firms need to be ready for what software offers. Do not fall victim to your own culture, neglecting to adopt a forward-thinking approach to managing receivables. Understand what information about your receivables you need to gather and how to analyze that information.
Many firms don't know how to determine if collection efforts are successful. They make the mistake of believing that since they are using collection software, they are making effective collections progress. However, firm management needs a clear picture of the progress of collection efforts. Software -- if used right -- and the people who use it, can provide that picture.
Remember it is up to firm leadership to use software information to predict cash flow, determine when and if clients will pay, and what methods will work to achieve the best results.
For more information on accounts receivable management, check our website -- http://www.clientci.com/
