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/