Keep Looking Underneath Those Ageing Receiveable Numbers for Reasons Why Your Firm Has Not Been Paid. You May Be Surprised What You Learn!

While clear, fundamental accounts receivable management is common in most businesses, law firms are often challenged to be paid timely because there are certain clients, transactions and payment arrangements that do not or cannot follow prompt payment guidelines.  However, recognize that these are the exceptions and not the rule.  Moreover, law firms need to understand that these exceptions have the potential to gain traction and become problem paying accounts as they age.  On top of that, firms sometimes have a false sense of security that they have a heaping pot of revenue that needs to be paid, when what they really have is an empty pot of promises that continue not to be paid (if they ever will be).

Do not fool yourself into thinking that your A/R management and collection efforts can succeed until you understand which moving parts need closer attention and adjustment.   Change can be difficult, especially with so many other priorities to attend to when managing a busy law firm, but the bottom line is the bottom line.  It requires all hands on deck to ensure that bills are in line for payment --or can determine what has to be done to get them in line).  Determine:

• Whether accounts are actively being pursued at critical ageing points or follow-up efforts are stagnating
• What the payment status is, what can be done to speed up the process and what the chances are of not being paid
• The time commitment, skill level and level of motivation of those pursuing unpaid bills, and what success they are having, especially with older accounts
• Why clients are not paying, and what steps are being taken to get them to pay.

There can be a false sense of security that collection efforts are working when revenue is rising and budgets are met.  Therefore, it’s critical to take a harder look at receivables that are not being collected and how you are dealing with issues that are preventing payment -- particularly for those receivables over 90 days – that can tell a whole different story. Would you like to learn more? Please visit our web-site at https://clientci.com/