Client Connection

Client Connection

Sunday, July 1, 2012

Money is Not Going to Just Drop Out of the Sky

Among the tasks that lawyers are asked to take time out from practicing law for, is there anything they want to do LESS than managing accounts receivable? Many lawyers find it tough enough to spend time sending bills. Facing unpaid bills -- and trying to get them paid -- is worse.

Lawyers need to ask for assistance and understand that others can help. Law firms need to support them by providing workable A/R programs that provide results.

Attorneys have other priorities than collecting their bills timely and efficiently. They are concerned about servicing their clients, like they should be, and less about when they are going to get paid.

Consider the following:

• Most clients will not call if they have a problem with ther bills, for a number of resons. They may be uncomfortable talking about money, they are totally confused by the bills and don't know where to begin, or they may be unprepared for the total amount of the bill and find themselves unable to pay.

• Collection problems continue to grow as receivables age. If bills have not been paid within 30 to 60 days, you have received a good sign that there may be a collection or a cash flow problem for the clients. And clients reason that if the firm has waited and not been diligent about collecting unpaid bills, they can wait to pay them. The longer a law firm waits to collect unpaid bills, savvy clients realize, the more likely bills will be discounted or written off altogether. 

If you understand some of the common mistakes law firms make, you can address them, which will result in less stress for you and more dollars coming across the threshold.
For more information on accounts receivable management, check our website --