When it comes to managing accounts receivables, if your firm is like many that we know, it has one foot in and one foot out of the water. It has not wholly committed to jumping in. You may be cutting corners, without fully embracing all the accounts receivable management efforts that you need to.
Too often, firms get to December 31 and breathe a sigh of relief that they made it to year-end safely. Yes, firms may have met budget, but too often they left too many unpaid receivables, which will continue to age and become increasingly difficult to collect. They choose to ignore the amount that they have failed to collect by turning a blind eye during the year to how they could perform better.
The first part of the year is critical for evaluating how your firm can do better to diligently manage and collect its receivables.
While the year is still relatively young, take five steps that ensure a full commitment to managing your receivables – and will start showing results quickly on your bottom line.
1. Limit the autonomy you give individual attorneys
2. Build an accounts receivable management program, from the time WIP is billed through when invoices are paid in full
3. Recognize that the effort is year-round
4. Make sure your clients know that it is you who are in control
5. Don't count on the past to predict the future – While past performance should not be ignored, it may be less useful for purposes of ensuring firms will have a successful year unless the right changes are made with A/R management.
Client Connection assists law firms of all sizes throughout the United States by furnishing accounts receivable management services, developing practical receivable programs, training law firm staff in effective collection methods and executive placement of professional collections managers. Learn more by visiting our web-site at http://www.clientci.com.
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