As we mentioned in our last blog post, law firms should evaluate whether they have the right team in place.
Determine whether the firm has the right administrative staff, and judge whether they are doing the right work the right way. Are these staff members reporting weekly on the accounts for which they are responsible, the age of the accounts, how much they have collected, and what they have in line for payment? Do you know how much they are working on actual collections, as opposed to other duties less important to their primary purpose (i.e., generating reports, sending out reminder statements, providing information that the lawyers request, etc.)? Are they knowledgeable enough to provide the right reports and management information to the firm that will explain the progress of the collection efforts?
Staff must be held to a high level of accountability, but for different reasons than the attorneys. If the firm chooses to have staff contacting clients directly, the staff must not be distracted by too many other responsibilities that keep them from dedicating themselves to the primary mission. Beware of staff that prefers doing clerical work to making telephone calls to clients.
Your collection team members must have a strong understanding of different kinds of transactions and different practices, and what each requires. They must know -- and have access to -- the right resources for getting bills paid. They must have a strong understanding of payment for both institutional and non-institutional clients. They must be expected to handle collections on a day-to-day basis, but, equally important, they must be evaluated to insure that they are providing concrete results.
December will be here soon! Are you staffed and ready?
Recognize collection managers as the "rainmakers" they can be. Although they are making rain in a different way, the value they can add to the bottom line can be equally great.
For more information on accounts receivable management, check our website -- www.clientci.com.
