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October 19, 2020
Prepare for a Challenging End to a Year
Unlike Any Other
Roll up your sleeves and get started
2020 has been a rough year, unlike anything we have ever experienced.
We would venture to say that no firm has planned adequately for such hard
times. Even more challenging, if your firm has not done a good job
managing its A/R in good times, how can you expect to manage them when
times are tough?
But no matter how difficult times are, year end is coming, just like all
other years. So take the time to get your priorities straight and
determine how your firm will make changes that are needed.
Effective receivables management starts from the top. Firm leaders
should lead by example. They need to tell the attorneys to address
their collections. Just as important, they need to understand what
resources and strategies are required to help achieve results -- sooner
rather than later. Look at everything, including how your firm
historically has managed its receivables at year end, to determine where
changes need to be made, based on today’s down economy and different client
payment patterns. More than ever, be aware that certain problems
surrounding clients’ failure to pay your firm has dealt with in the past
are becoming more prevalent. For example, clients with cash flow
problems will delay payments or not pay at all, and clients can have
“sticker shock” when they expect to receive a bill of a certain size and
are surprised when a much larger one arrives.
Focus on areas that
make a difference and don’t make assumptions
Change can be difficult, especially with so many priorities to attend to
during such uncertainty. But the bottom line is the bottom
line. This year, unlike others, it requires all hands on deck to
ensure that bills are in line for payment. Therefore, start
determining:
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