With only a few weeks left in the year, your firm should now be in a position to implement its year-end collection efforts. The newer (and, therefore, easier) receivables are the accounts that we tend to gravitate to in December to ensure those accounts are paid. But firms should not forget about the older, more difficult accounts that have not paid during the course of the year.
Often law firms will acknowledge problems that are slowing down or preventing payment on certain accounts, without taking the time and action to re-visit these accounts to ensure collection efforts are succeeding. The truth is, however, that working on these types of accounts can not only result in found money for the firm, but also will free the firm from carrying these accounts into the next year. Have the stronger, more experienced members of your collection team focus on the older, tougher accounts. Also don't let the number of over-90-day accounts grow by neglecting to work the smaller delinquent balances. You may be surprised how significant a portion of the firm's accounts portfolio is comprised of accounts with smaller balances.
Managing accounts receivable and collection efforts is a step-by-step process, requiring the right processes and the right people in order to see results.
Happy Holidays to everyone from all of us at Client Connection. We wish you a happy and successful 2013, and we look forward to continuing to offer you helpful tips and ideas in our e-mails and newsletters. Learn more on our web-site... http://www.clientci.com
