Unfortunately, firms often put procedures in place and neglect to consider whether or not they are really working -- especially for older, difficult accounts. Yes, it is essential that all firms state their position on collection procedures, but they also need to allow a fair amount of latitude for decisions based on individual client relationships. This is where it gets tricky! Firms can no longer accept that ageing receivables are simply a part of doing business. Therefore, they need to ask: do we really have the right processes and procedures in place or are we kidding ourselves that what we are doing is working?
No matter the size of your firm, much of the success of your collection efforts is dependent on direction from firm leadership itself and its willingness to fully address the issue.
There is no doubt that, however good the procedures, enforcement is difficult, even at the best-run firms. Giving too much autonomy to attorneys often lies at the root of a firm's A/R problem. However, having procedures in place gives firm leadership the gateway to step in to help attorneys understand what specific actions they must take to ensure payment, provides a clear timeframe for getting accounts collected and provides the right support to help them in their efforts.
Policies help leadership and management work through receivable issues and not just accept attorney statements like: "I'm working on it" or "I'm in contact with my client about this." It gives the firm the opportunitiy to help move forward before a receivable becomes uncollectible.
Avoid the pitfall of waiting too long to say "we have a collection problem." It was a problem much sooner, but the firm did not address it. Learn more on our web-site at http://www.clientci.com/
