Client Connection

Client Connection
www.clientci.com

Wednesday, January 1, 2014

Start Making Plans for A/R Solutions in the First Quarter of 2014

The success of efforts to improve accounts receivable management depends on the ability to change law firms’ attitudes regarding payments and teach them why it is necessary to keep bills from aging too long.  This requires overcoming common misconceptions during the first few months of the new year:
  • A/R problems begin when receivables start aging past 90 days – If bills have not been paid within 90 days or without a reasonable explanation from clients, your payment problems have already begun. The longer a law firm waits to collect unpaid bills, the more likely the firm will end up getting paid less – or not at all.
  • Lawyers damage their relationships by asking clients to pay their bills – You lose clients by doing poor work or by failing to deliver excellent client service, NOT by asking clients to pay their bills.  Contacting clients early in the aging process can actually strengthen relationships.
  • Clients will call if they have a problem with a bill – They can, but they won’t, for various reasons:  discomfort talking about money, confusion about the bill or reluctance to admit they don’t have the means to pay.
  • Sophisticated collection software is the answer to all our collection problems – Software is a terrific tool and can provide meaningful information if a firm has a strong understanding of what reports are needed, but it is only as good as the people using it.
  • We have the right reports to help analyze our receivables – Many firms still use reports that offer insufficient or inappropriate information to pursue offenders, whether those offenders are the clients or the attorneys.

Happy New Year from everyone at Client Connection!
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http://www.clientci.com/

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